How are you positioned ahead of the launch of 5G?

How are you positioned ahead of the launch of 5G?

29 March 2019 from Mikael Syding

I have previously written about Nordic Industry 4.0. The companies that are there are pioneers in the Internet of Things and machine-to-machine communication. All of these contribute to an exponential increase in the amount of data that must be transferred, processed and answered quickly and reliably. At the same time, the demands for mobility mean that an increasing proportion of the communication takes place wirelessly.

In order to manage IoT and Big Data, more powerful mobile networks are required. This is where the 5G launch becomes relevant. The 5G networks enable both faster and safer wireless data communication and partly dynamic energy consumption. The latter means that the network components do not need to be in energy-demanding standby mode when not in use.

5G enables up to 10-20 Gbit/s in data transfer rate and as little as 1ms latency, which can be compared with 30-70 ms for 4G. However, the perceived data rate for the users will "only" be 0.1-1 Gbit/s, which is still 10x faster than most have in their fiber connection to the home today.

The high speeds and low latencies mean that 5G is excellent for both computer games and industrial precision work within eg. production and mining. The speeds are achieved thanks to shorter wavelengths and higher frequencies, but at the same time, the range is much lower, which is why many more but smaller antennas must be installed. 5G is therefore mainly suitable for urban areas.

5G enables digital VR environments to be physically reflected in mines and machine halls

The 5G networks mean that one can mirror the development within Augmented and Virtual Reality. Within the AR/VR the physical reality is simulated or supplemented in a software environment; simply a computer program. But here you are instead talking about a digitized workshop or cyber-physical system, where actual mechanical components, transport carts, drilling machines and excavators are digitally controlled remotely - and not necessarily by a human being but in interaction with other machines.

Automatic production lines, with subsystems in cyber security, robotics, mechanics, sensors, audio / video and of course also network technology and software, can function more or less autonomously when supported by 5G communication. It enables more efficient, more cost-effective, faster, safer and, not least, more energy-efficient production methods.

This means enormous benefits when, for example, mining environments do not have to maintain breathable air or safe handovers between human work teams. Furthermore, it is much easier to optimize workflows when they can first be simulated in virtual environments and then implemented directly, without the training of employees.

A cool opportunity (for the retail sector) with the new technology is that people’s personal data leakage means that companies like Alphabet, Uber or Amazon can predict what you want and when, before you know it yourself. YouTube, Netflix and Amazon are already doing this with pretty good precision, as they immediately suggest what to buy, read or watch right after your last completed consumption.

The ice cream truck and the hot dog stand are early examples of almost personalized service. However, a future wheel based or rotor driven Amazon drone only needs to carry a handful of alternatives to your door instead of 40 kinds of ice cream, since the company already knows almost certainly whether it is champagne, flowers, books, sushi or burgers you will want to buy on a Friday evening at 8 pm.

Your data leakage consists of keystrokes in social media, GPS data from your phone, addresses for your Uber journeys, credit card purchases, music and video consumption; and subtle things like patterns in your energy use at home, use of WiFi, thermostats and many other things that only the companies involved know. Facebook alone usually knows better than you yourself what your political and sexual preferences are, and definitely what food and travel destinations you would appreciate the most.

OK, maybe not you, because of course you are unique. But when Facebook guesses what 100 people want, they are right often enough to form the basis for a functioning business model, that with just the right timing will appear at your door with a handful of different offers that are too good to refuse for most. The last piece of the puzzle needed is capacious plumbing for wireless data, where most of the data leakage occurs - and that is exactly what 5G entails.

Switzerland, Finland and the US are considered to be leaders within IoT, but Sweden is not far behind. Thanks to Ericsson, Sweden also belongs to the leaders in 5G technology, which is reflected in different thematic indexes.

Vontobel offers a number of thematic products that give the investor exposure to, for example, the bank's best recommendations, Industry 4.0, or, in line with today's article, the Solactive Technology 5G Performance Index. Through Solactive 5G you get exposure to twenty different 5G companies, eg. American Tower, Apple, Ericsson, Nokia, Xiaomi, Softbank, Samsung, China Mobile and Broadcom.

The first phase of the 5G rollout, the so-called "Release-15" will be implemented in the spring of
2019, and the second phase, "Release-16" will be fixated one year later. If you want to join the 5G wave, you have to identify consultants, operators, technology suppliers and application developers and other service companies that benefit from the 5G technology today.


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07/12/2022 12:12:40


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