Summary: The world is on the cusp of a massive mobile internet revolution with the advent of fifth-generation (5G) wireless technology. By delivering mobile data speeds that are radically faster than current 4G technology, the shift to 5G will usher in the age of smart cities, smart energy, autonomous vehicles and the Internet of Things (IoT), among other disruptions. For investors, the 5G opportunity stretches beyond just telecom service providers: Equipment makers, chip manufacturers, tower cells, and data center operators are other ways to gain exposure.
While MRP has previously covered 5G technology, there had not been a finalized framework in place for the standardization of new, standalone 5G deployments until last week when the 3rd Generation Partnership Program (3GPP), an international group of telecommunications standards associations, announced a second and final standardization for the first phase of 5G. “Release 15”, as it is titled, is significant because, prior to the second standardization, the primary devices hooked into a cellular network were only cellular phones. Standalone 5G deployments are anticipated to enable high-speed connectivity for everything from home appliances to industrial automation equipment. Cars, laptops, televisions, and many other devices. Further, it clears the way for an even more advanced “Release 16” which will center around ultra-reliable and low-latency communications, a vital component for 5G deployments in industrial IoT use cases such as robotics and telepresence systems.
Telecommunications providers have been continually preparing to test more advanced 5G applications in coincidence with the rollout of Release 15. Verizon and Nokia just completed the world’s first outdoor test of a 5G connection using New Radio (NR) standards set by 3GPP. The two also successfully used multicarrier aggregation to hit throughput speeds of up to 1.8 Gbps, a new milestone for 5G. Even more impressively, the collaborators transmitted interactive VR sessions and simultaneous 4K streaming video on the network’s 28 GHz millimeter wave spectrum with latencies of just 1.5 milliseconds. For context, this is nearly seven times faster than 4G’s latency (10 milliseconds), the current standard. Telecom companies across the board are racing to reach the sub 1 millisecond holy grail of low-latency.
Decreasing latency, the delay before a transfer of data begins following an instruction for its transfer, will be key for the reaction time of 5G-connected autonomous vehicles. An estimated 21 million connected cars are currently on the road and their capabilities go beyond just steering, ranging from monitoring for faults to contacting emergency services, and even the ability to unlock your car using an app. The global market for connected cars is expected to increase dramatically in the near future, growing by 270% by 2022, and embedded 5G will vastly improve safety and performance beyond 4G. 5G could enable vehicle-to-vehicle and vehicle-to-infrastructure communications at a speed and capacity not possible with previous generations. 5G uses different radio spectrum frequencies and shorter wavelengths, allowing 5G to support approximately 1,000 more devices per meter than 4G, a critical advantage in crowded urban centers.
While autonomous cars may be a few years away, 5G PCs and televisions could be coming as soon as next year. Microsoft, Dell, HP, and Lenovo had already said they will be releasing 5G enabled computers in 2019, and earlier this month Sprint, Acer, and Asus joined the pack by announcing their own intel-powered 5G PCs. Chinese smartphone manufacturers like ZTE and Huawei are leading the charge to distribute 5G smartphones by 2019, but LG, Sony and HTC could be right behind them with their own devices. PCs and smart devices will put their 5G connectivity to use by enabling applications like 16K Facetime, where Skype calls may soon be better than today’s professional cameras, and REMI2 via Internet, remote integration of live sports, and concert streams for super low costs.
Deployment plans continue to expand at a much faster rate around the globe. South Korean carriers have agreed to build a single 5G network to keep infrastructure costs down and speed up deployment, planning its spectrum auction for June. Commercial deployment has been accelerated to March 2019, with a nationwide rollout complete by 2022. Japan’s NTT DoCoMo and Softbank have been major investors in the standard so far and are continuing to conduct numerous trials ahead of their rollouts. India’s governmental telecom department is pushing for a massive rollout of 5G as early as 2020, and dramatically increase the size of spectrum releases. Even Smaller nations like Serbia want to have 5G initiatives ready to begin rolling out by the end of this year.
Investors interested in gaining exposure to 5G will be able to invest in a number of different ways. Although the global telecoms ETF (IXP) and US Telecoms ETF (IYZ) would give pure exposure to the world’s leading telecom companies, there is much more to investing in 5G than just service providers. Telecoms source their equipment from suppliers like Nokia (NOK) and Ericsson (ERIC), as well as tower cells from American Tower Corp (AMT) and Crown Castle Corp. (CCI). Finally, 5G chipmakers stand to gain from new devices as 5G technology will not be retroactively compatible with 4G-powered devices. Intel (INTC) is the leader in 5G chips thus far, leading the way for 5G PC hardware.
We’ve also summarized the following articles related to this topic…
5G: Verizon and Nokia just hit major 5G milestones
Last week, Verizon and Nokia fulfilled two industry firsts on the path to 5G commercialization. First, they completed the world’s first outdoor test of a 5G connection using New Radio (NR) standards set by the international wireless standards body 3GPP. Second, the two successfully used multicarrier aggregation to hit throughput speeds of up to 1.8 Gbps.
Verizon and Nokia successfully transmitted numerous live, interactive VR sessions and simultaneous 4K streaming video on the network’s 28 GHz millimeter wave spectrum with latencies of just 1.5 milliseconds. For context, this is 150 times faster than the blink of the eye — and nearly seven times faster than 4G’s latency (10 milliseconds), the current standard. The news comes on the heels of T-Mobile and Nokia’s 5G milestone achievement last week. The duo announced on Thursday that they successfully executed the nation’s first 3GPP-compliant, bi-directional over-the-air data session.
Emerging technologies require faster speeds and lower latency to function. 5G will enable more VR and AR processing to be completed at the edge of the network, thereby reducing latency. The low latency of 5G networks will also power automated cars and enable them to react to situations in real time. And the efficiency and far-reaching abilities of 5G networks make it ideal to handle the trillions of IoT devices that will surface in the network over the next 10 years. BI
5G: 5G will enable a new era of connected cars
Nowadays, most new vehicles are ‘connected’; fitted with some form of in-vehicle communications or internet access. However many experts believe that the introduction of 5G could expand connected cars even further. A reliable 5G network could dramatically impact the capabilities of connected cars, and in doing so finally make autonomous vehicles a commercial reality.
The global market for connected cars is expected to increase dramatically in the near future, growing by 270% by 2022. More than 125 million connected passenger cars with embedded connectivity are predicted to be shipped during 2018-2022.
5G could enable vehicle-to-vehicle and vehicle-to-infrastructure communications at a speed and capacity not possible with previous neteone generations. Crucially, the low latency of 5G will mean that there is no noticeable delay between a signal being sent and received. This is vital for safety, especially in autonomous vehicles.
Although it may be a while before driverless cars become the norm, some companies are making headway in combining the two cutting-edge technologies. This month, Baidu and China Mobile announced that they would be partnering to develop an autonomous car platform that will use 5G. Verdict
5G: The Shift From 4G to 5G Will Change Just About Everything
Telecom experts are going so far as to herald the arrival of 5G as the advent of the fourth industrial revolution. Through a combination of high speeds, massive bandwidth and super low latency, 5G will allow for improvements in AR, VR, robotics, cloud gaming, immersive education, healthcare and more.
5G uses unique radio frequencies that are higher and more directional than those used by 4G. 4G networks use frequencies below 6 GHz, while 5G will use much higher frequencies in the 30 GHz to 300 GHz range. The larger the frequency, the greater its ability to support fast data without interfering with other wireless signals or becoming overly cluttered. 5G also uses shorter wavelengths than 4G, which means antennas can be shorter. 5G can therefore support approximately 1,000 more devices per meter than 4G. On 5G, more data will more quickly get to more people with less latency and disruption to meet surging data demands.
With 5G, it takes less time for the signal to travel, which translates to low levels of latency – a millisecond on 5G networks. Pages will load much faster, allowing for a significantly greater immersive experience, particularly in the realms of VR and AR. ADWeek
5G: Apple, Qualcomm Trade Hearing Hinges on 5G and National Security
Apple Inc. must persuade a U.S. trade judge that iPhones that contain Intel Corp. chips should be allowed into the country, even if they infringe a Qualcomm Inc. patent. Staff lawyers with the ITC recommended that Judge Thomas Pender rule that Apple violated one of three Qualcomm patents — for a battery-saving feature.
The ITC has the authority to block products from entering the country that infringe U.S. patents, though it also has to consider the broader impact on the economy and the public. Staff lawyer Lisa Murray said that iPhones with Qualcomm chips — which Apple already sells — could replace those with Intel chips in the market. A bigger question, she said, was how a ban would affect the U.S.’s race to stay ahead of China in 5G and whether that would be in the nation’s best interest.
Qualcomm has said the chipmaker was forced to take action when Apple ordered its suppliers to stop paying their licensing fees, which bring in the bulk of its profit; Apple wants to cut its costs as the global smartphone market slows. Apple contends Qualcomm charges too much for its patents on fundamental telecommunications technology and has directed its suppliers to stop paying royalties until a better deal can be reached. The unpaid fees could total $2.5 billion to $4.5 billion. B