Destination 5G

Explosion of possibilities in the programmable world present huge opportunities

5G:n uudet disruptiiviset liiketoimintamahdollisuudet -seminaari5.9.2016 – Oulun yliopistoseppo.yrjola@nokia.com

2 © Nokia 20162 © Nokia 2016

Explosion of possibilities

Augmentedshopping

Smart clothes

Virtual 3Dpresence

Factory automation Real-time

remote control

Assisted driving

Logistics

Traffic steering &management

Smart grids

Connected home

Real timecloud access

4k Video

VR gaming

Real-time remote control

Remote Diagnosis

Communication

Mobile living3D printing

Automotive

Toll collection

HD Cams NW

REVOLUTIONIZED

Traffic Mgmt.

SUPEREFFICIENT

Waste mgmt.

Reliable emergency communications

Tracking / inventorysystems

AUGMENTED

Augmenteddashboard

INTERCONNECTED

8k Video beamer

TACTILEVIRTUAL

Smart watch

Augmentedgaming

Self driving

Maintenance optimization

Touch & steer

AUTONOMOUS

Travel & commute

Health

Time shift

Utility & EnergySafety & Security

Work & game while traveling

REDEDICATED

People & Things

Real timework in cloud

Industry 4.0

Advanced monitoring

Personalrobot

3 © Nokia 2016

With transforming Internet business models

‒ Value in access

‒ Own and control e2e infrastructure

‒ Value capture from own value chain

‒ Leverage legacy assets

Tradition

‒ Value in existing (shared) infra

‒ Value capture from content, context and commerce

‒ Embrace sharing economy and build ecosystem

‒ Early adoption of innovations

Transformation

4 © Nokia 2016

In diversified business environment

Tailored E2E solutions for

• Media

• Enterprises

• Governments, cities and

societies

• Industry 4.0

• Verticals

• Extremely fast and secure, e.g., real-time medical imaging

• Low latency, critical availability e.g., healthcare, autonomous

driving

• Machine communications with

millions of sensors, e.g., factories, smart cities

New customers and spaces New use cases

• Connectivity+

• Content

• Context

• Commerce

• X as-a-Service

New business models

5 © Nokia 2016

Ecosystemdevelopment beyond telcos

Services transformation is a pre-requisite

Fundamental ArchitectureEvolutionis required

Massivemachine

communication

ExtremeMobile

Broadband

Critical machine

communication

Multiple Operator strategies possible. Defining a clear strategy matters

Maximize use of Pre-5G-technologies

Calls for a different approach than 3G -> 4G

Business modelsbeyondconnectivity

6 © Nokia 2016

Network as a Service

Information brokering

Connectivity +Network

Utilizing novel technology enablers

Data

Slice

Augmentedreality

Tailored XaaS solutions for spaces and vertical

XXL broadbandPerformance

Advanced logistics &production

Virtual reality

Traffic systems Massive metering

UHD video

„+“= content + tariffing / packaging

Factory automation

Logistics Smart grids

Connected home

4k Video

CommunicationMobileliving

AutomotiveTrafficMgmt.

Wastemgmt.

Augmenteddashboard

8k Video beamer

Augmentedgaming

Self driving

HealthUtility & Energy

Safety & Security

Real timework in cloud

Advanced monitoring

Virtualpresence

Logistics

T. mgmt.

7 © Nokia 2016

Connectivity +Differentiated and guaranteed quality

Contentprovider

Networkoperator

Content aggregator

Content DeliveryNetwork

$ Quality$ Quality$ Access $ Content

$ Content$ UHD, FMC, + Quality Revenue opportunities

Legacy revenues

KEY ENABLERS

• Multi-connectivity• Dynamic Experience Management• Low latency

Vertical

End-user

„+“= content + tariffing / packaging

XXL broadband Virtual realityUHD video

Connected home

4k Video8k Video beamer

Real timework in cloud

Advanced monitoring

Virtualpresence

8 © Nokia 2016

Wholesale customers Retail customers

Information brokeringLeverage assets for profitable partnerships

010100100101101110010101001011101010010110111001010100101110100110101010101101010101101011010110101010101100101100101101110010101001011101001101010101

Networkoperator

Content provider

Retail shop

…

KEY ENABLERS

• Big data analytics• Lowest latency

(as much info as possible is context specific) Augmentedreality

Advanced logistics &production

Traffic systems

Massivemetering

End-user

Utility

Services

InformationWholesale

9 © Nokia 2016

Network slicingHelp different industries to transform

SaaS

PaaS

IaaS

Management Security / Privacy

Infrastructure

Orchestrator

Platforms

Applications

KEY ENABLERS

• Slicing• Dynamic Experience

Management• Any-to-any connectivity

• Low latency• Slim radio

for IoT

augmented value adds

Network operatorVerticalsEnd-user

to their core offering

+ CRM

Vertical specific

Network as a Service

Tailored vertical XaaS solutions

Communi-cation

Mobileliving

Auto-motive

TrafficMgmt. Health

Utility & Energy

Safety & Security Logistics

10 © Nokia 2016

Creativity is connecting things

Connections* ARPC** Churn Data pricing Connectivity Security

overview activities11billion

Ø $30per month

~ 35% often more

Based on

VOLUMEof data

Tens of billions

Ø $3per month

~10% or less

Based on

VALUEof data

Important

Critical

Connecting people

Connecting things

*) 2020; **) 2015

Besteffort

QoEmgmt.

SLAs

Re

liab

ility

Criticality

11 © Nokia 201611 © Nokia 2016

Mobility Smart Homes

Utilities Digital Health

Industries Retail & Services

Smart City

Public Safety

IT

Source: Machina Research

and Nokia

>€100B or >50% 2015-25 CAGR >€10B or >30% 2015-25 CAGR

28B(6%)

4B(1%)

8B(2%)

9B(2%)

434B(90%)

224B(46%)

117B(24%)

39B(8%)

26B(5%)

24B(5%)

19B(4%)

19B(4%)

10B(2%)

7B(1%)

484B

2025 marketprojection in €

IoT modules

Cellular Connectivity

Connectivity Management Platform

Application Enablement Platform

Applications, Analyticsand End-User Services

2B

2B

0.4B

2B

0.8B

1B

0.3B

0.6B

0.2B

2B

0.1B

3B

0.04B

0.1B

0.04B

0.3B

0.002B

0.4B

31B 23B 19B 18B 6B 6B203B 110B

11B 3B 5B 2B 2B 0.6B 0.3B 3B 0.3B

6B 0.04B 0.02B 0.08B 0.01B 0.7B 0.7B 0.4B 0.01B

18B

To tap into huge IoT market opportunity

Let’s work together to design and enable unique 5G

Thank you

www.networks.nokia.com/innovation/5G