Basic knowledge of 5G

In March 2020, the new mobile communication system 5G started. In this series, we will explain what 5G is in the first place and its technical significance as 5G service begins. In addition, we will introduce the situation overseas where the service has already started, and explain the considerations surrounding 5G in Japan so far, the future area expansion, and the outlook for the spread of terminals.

Table of Contents

The 1st: What is 5G? Commercial services for 5G have been launched with a target of 2020, the year of the Tokyo Olympics and Paralympics.

5G means 5th Generation, that is, the 5th generation mobile communication system. There are more opportunities to be featured in various media, such as the ability to download large-capacity movies in seconds. It should be noted that 5G is not a so-called buzzword, but a tangible technical specification. 5G has three directions: ultra-high speed, ultra-low latency, and multiple simultaneous connections.

Super high speed, as you can see intuitively, means that even large amounts of content can be communicated at high speed. The fast movie download mentioned above is realized by this super speed increase. It can be said that it is a continuous evolution from 4G. The demand for communications is still growing exponentially, and mobile communications are also required to evolve.

Ultra-low latency means that communication delays are reduced and real-time communication is enhanced. When using mobile phones and smartphones, even with 4G, latency may not be so noticeable. Ultra-low latency is required for applications that want to avoid even the slightest delay in communication, such as remote control of robots.

Multiple Simultaneous Connections means that you can connect many terminals from one base station at the same time. With 4G, if there are too many terminals communicating in a particular area, the communication may become congested and the connection may be lost. This is a requirement to avoid such situations.

Ultra-low latency and multiple simultaneous connections are elements that have evolved up to 4G, but in the sense that they have not received much attention, it can be said to be a discontinuous innovation. These are factors that make sense when connecting more sensors and robots to networks than consumer devices such as mobile phones and smartphones. In other words, 5G is designed with an eye on the era of IoT (Internet of Things), where all things communicate. 5G has the potential to revolutionize not only consumer lifestyles but also businesses in a wide range of industries, and this is the reason why 5G is attracting so much attention (Fig. 1).

Figure 1: Direction of 5G (Source: Ministry of Internal Affairs and Communications 5G explanatory material)

Looking at the world, some countries have already started 5G services. America and South Korea are ahead. The four major US carriers (Verizon, AT&T, T-Mobile, Sprint) and the three major Korean carriers (SK Telecom, KT, LG Uplus) have already started 5G services and are expanding 5G areas in Japan. I'm here. Europe also has 5G services in the UK, Germany, Spain, Italy, Northern European countries, and some carriers in the Middle East and Australia.

FWA (Fixed Wireless Access) services have been launched in residential areas in rural areas due to the fact that the United States is a large country and fiber-optic lines are not installed everywhere. FWA is a communication method that connects a fixed terminal installed in the home and the Internet via 5G, and connects the home terminal to other devices in the home via Wi-Fi.

On the other hand, in South Korea, areas have been developed from urban areas with high communication demand, and usage has spread from heavy users of mobile communication. As of the end of 2019, the number of 5G subscribers in South Korea has exceeded 4 million, and it is spreading rapidly. Japan is similar to South Korea, and usage will gradually spread from urban areas and heavy users.

Even in countries where services have already started, the spread of 5G has started with the stimulation and acquisition of consumer demand centered on 5G terminals such as smartphones. Of course, industrial applications are also being researched, but their spread is yet to come.

In Japan, we have been aiming for commercialization ahead of the world in preparation for the 2020 Tokyo Olympics and Paralympics. Since around 2015, 5G technology research and development and standardization activities have been underway, and since around 2017, the government has been leading the development of use cases. Allocation of 5G frequencies took place in April 2019 and is progressing as originally planned. However, in line with the movement of countries around the world, we are implementing a pre-service from 2019 without waiting for 2020.

When allocating frequencies, carriers submit specific base station deployment plans to the authorities. Instead of allocating frequencies, the authorities impose conditions on telecommunications carriers to firmly build 5G areas, and telecommunications carriers create plans to meet those conditions and submit them to the authorities. .

The 5G specific base station deployment plan was subject to a 50% infrastructure deployment rate within five years. The base deployment rate is the ratio of the base stations to all 4,500 blocks of a 10km square grid that divides Japan into 10km squares, and indicates the area coverage. The fact that the conditions are defined by area coverage rather than population coverage means that base stations must be installed in areas with low population density or even in uninhabited areas. In other words, it reflects the policy intention to build 5G areas not only in cities where communication demand is high, but also in rural areas.

NTT DoCoMo and KDDI are planning to deploy infrastructure at over 90%, and Softbank and Rakuten Mobile are also planning to deploy around 60% (Fig. 2). If 30% of Japan's land is covered, more than 90% of the population can be covered, so 5G area deployment will progress rapidly. However, a single base station cannot cover a 10km square area. Therefore, not all of the country is covered, and it is thought that there will be a difference in density according to communication demand.

Figure 2: 5G deployment plans by telecommunications carriers (quoted from Ministry of Internal Affairs and Communications, explanation materials for specific base station establishment plans)

As the expansion of communication areas progresses, the next problem is the spread of 5G terminals. Nomura Research Institute predicts that by 2025, just under 60% of devices sold that year will be 5G (Fig. 3). This is slower than the spread of terminals at the start of 3G and 4G. This is likely due to the prolonged replacement cycle of handsets and the price of 5G handsets.

Figure 3: Prediction of 5G terminals and 5G lines in Japan (Source: Nomura Research Institute IT Navigator 2020 version)

How was it? This time, we introduced the situation surrounding 5G services overseas and in Japan. In Japan, we found that the area deployment of 5G will steadily expand in the future, and 5G terminals will spread, although not as rapidly as 4G. In the next installment, we will look at lifestyles that will change with the spread of 5G services. looking forward to!

Part 2: Changing Lifestyles

In the previous article, we introduced the international and domestic situation surrounding 5G services. This time, we will take up the lifestyle that will change due to the spread of 5G services. 5G lifestyle innovations will unfold from the use of video on smartphones, especially in the field of entertainment such as sports and live performances. A variety of 5G smartphones have been released overseas. Even in Japan, without waiting for the launch of 5G service, competition has begun in terms of communication rate plans and services in anticipation of the 5G era.

The spread of 5G begins with consumer services centered on smartphones. The biggest beneficiary of 5G's high-speed communications is large-capacity content, namely video. Today, the lifestyle of watching videos on smartphones while on the go or on the move has become firmly established. To meet these needs, we are already offering communication rate plans ahead of the 5G era.

Since September 2018, SoftBank has been offering a large-capacity plan with a data capacity of 50GB called Ultra Giga Monster + (Plus). This plan is equipped with a service called count-free, in which various video services and SNS communications are not subtracted from the 50GB. In addition, since July 2019, KDDI has been offering a plan with no upper limit on data capacity called the au Data MAX Plan. Such unlimited plans are called Unlimited. Furthermore, in September 2019, KDDI launched the au Data MAX Plan Netflix Pack, which bundles the usage fee of the video distribution service Netflix with this unlimited plan, making its focus on video services clear. Looking at overseas examples, it is assumed that in the 5G era, the capacity of rate plans will increase further, and video demand will be stimulated.

One of the most popular videos is the broadcast of live events. While enjoying live sports and music at the venue, multi-angle viewing that allows you to see what you want to see on the screen at hand and from any angle will bring new ways to enjoy the event.

Devices unique to 5G are also available for enjoying these video services. Samsung's Galaxy S10 5G, which is sold not only in Korea but also around the world, China's Oppo's Reno 5G, which opened up the European market, and other Chinese smartphone giants are releasing 5G smartphones one after another.

One eye-catching trend is smartphones with foldable displays. China's Huawei Mate X, which folds the display outward, and Samsung's Galaxy Fold 5G (Fig. 1), which folds the display inward, have the same basic concept of a large-screen smartphone that can be carried around, although the folding direction is different. A similar concept is the dual-screen smartphone, with South Korea's LG launching the V50 ThinQ.

Figure 1: Samsung Galaxy Fold

Smartphones with ultra-large folding screens will enhance the presence of sports and live viewing with high-definition large-screen images. Dual-screen smartphones offer multi-angle viewing and the ability to view sports on one screen while viewing player information and rules on the other.

As a new innovation in foldable smartphones, there are also proposals to fold a normal size smartphone vertically like Motorola's Razr and Samsung's Galaxy Z Flip. The use of large-capacity content will be promoted even on small terminals that are suitable for carrying around, and the demand for communication will increase.

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Part 3: Changing Business

In the previous installment, we introduced lifestyle changes due to the spread of 5G services. This time, we will explain the business innovation in various industries realized by 5G services, mainly trends in the marketing area. In addition, telework is attracting attention due to the effects of the new coronavirus infection, and an increasing number of companies are introducing it. The evolution of technology, including 5G, will not only promote telework, but will also become a co-work infrastructure that goes beyond the meaning of working from home instead of the office. In this article, we will also focus on the changes in work styles brought about by 5G.

How will business change with the advent of the 5G era? This includes the perspective of business creation, which will allow us to provide new value to end users, and the perspective of sophistication and efficiency of operations, which will enable new ways of working. All of them are approaches of connecting the company's assets and products, so-called "connected".

What is likely to change at an early stage as a change in society is marketing, that is, the field of advertising and customer referrals. Marketing on personal devices like smartphones is already deeply personalized. In the 5G era, the trend of personalization and dynamism in marketing other than personal devices will accelerate further.

In recent years, we often see advertisements using digital signage in stations, on trains, and in stores (Fig. 1). In the advertising industry, it is sometimes called DOOH (Digital Out Of Home). The women's magazine "CanCam" displayed female models on the digital signage on the platform of the station, and carried out a promotion where the clothes moved with the wind when the train came, giving passers-by a surprise. In addition, we promoted the sunscreen cosmetics "Pantene" by changing the product price according to the amount of ultraviolet rays. These are called dynamic DOOH, with the approach of dynamically changing the advertisements to be aired based on external data such as train arrival/departure times and the amount of UV rays.

Fig. 1: Digital signage

Cooler Screens, an American company, is developing a solution that uses the glass doors of chilled shelves in retail stores as digital signage and also links cameras. Specifically, we will improve product display and packaging by measuring the line of sight with a camera and comparing the degree of recognition and sales volume with actual data. In addition, cameras will be used to identify customers who have picked up a beer, and offer products that go well with the beer, enabling dynamic and personalized promotions. It has been reported that the company's solution has actually increased the sales amount of products, and it is likely that this kind of sophistication of marketing will be achieved in the 5G era.

Currently, digital signage is rapidly spreading in places where people can concentrate on watching, such as in trains and taxis. 5G will make this kind of digital signage more connected, dynamic and personal as there is no wiring burden. In the future, it is conceivable that every place in the life line of consumers will become a marketing point of contact.

Published in an archived PDF. Please download it from the link below and take a look.

Part 4: Manufacturing and 5G

In the previous installment, we introduced changes in business, such as marketing innovations due to the spread of 5G services. This time, we will explain the innovation of manufacturing sites that 5G will bring. From the viewpoint of manufacturing, 5G is expected to have two potential uses. One approach is to create a new user experience by connecting products. The other approach is to innovate the manufacturing process by connecting the assets of the production site. Many attempts are being made in the manufacturing industry, and it is expected that collaboration between the manufacturing industry and the telecommunications industry will accelerate in the 5G era.

The 5G era will be an all-connected era where all products will be connected to the network. Among them, connected cars, or connected cars, are products that are expected to utilize 5G.

Products in cars are already becoming connected. For example, as tailgating has become a social problem, drive recorders are rapidly spreading. The number of policyholders is increasing for new automobile insurance that connects this to the network and provides automatic emergency notification and dispatch in the event of trouble. Sompo Japan Nipponkoa is attempting to significantly shorten the period from the occurrence of an accident to the payment of insurance claims by using AI to automatically calculate the liability ratio from the video recorded by the drive recorder at the time of the accident.

French auto parts maker Valeo has developed a solution that makes the leading car translucent and allows you to see through it (Fig. 1). This avoids the risk of an accident caused by a car driving in front of you as a blind spot.

Figure 1: Valeo "XtraVue" (quoted from Valeo's official YouTube)

This technology superimposes the image captured by the vehicle in front on the image captured by your own vehicle and displays it on the display. It is realized by In order to realize such a solution, not only your own car but also the cars in front of you must be connected to the network, and each car must be able to continuously analyze the captured video without delay. You can

As a new application for connected cars, ALSOK and NTT Docomo are conducting a demonstration test in which a 360-degree camera is installed on the top of a security vehicle and continuously shoots surrounding images while driving. In this test, it was possible to detect the type of car and the posture of passers-by at a distance of about 35m from the security vehicle. If the image quality of the installed camera becomes even higher and the communication speed and capacity increase, the range that can be detected can be expanded further. It can be said that it is an application that looks ahead to the 5G era.

Published in an archived PDF. Please download it from the link below and take a look.

Part 5: Business Models in the 5G Era

In the previous installment, we introduced innovations in manufacturing sites brought about by 5G. This time, we will take up business models in the 5G era. In the 5G era, the communication business model will shift from B2X to B2B2X. This means changing from a model of providing telecommunications services to end users to a model of creating new value through Center B operators in other industries. In anticipation of this, carriers are strengthening partnerships with Center B operators. From the standpoint of a company in the non-telecommunications industry, it can be said that the time has come to utilize the assets of telecommunications carriers and transform their own companies.

In this series, so far, we have explained business in the all-connected era, where all products are connected to the network. The transformation brought about by 5G will not only be limited to smartphones, but also new businesses and work process innovations in all industries. Therefore, the transformation of the 5G era is expected to occur outside the telecom industry. In Part 3 and Part 4 of this series, we introduced examples from the advertising and manufacturing industries. A business model in which players from other industries outside the telecommunications industry play a leading role is called B2B2X.

Until now, the communication business was a B2X model. Telecommunications carriers provide communication services to consumers and companies, such as B2C (Business to Consumer: communication services for general consumers) and B2B (Business to Business: communication services for corporations). Here, we consider how much we can reduce communication charges, whether we can create an attractive lineup of smartphone terminals, whether we can bundle attractive mobile services, and whether we can reduce waiting times at mobile phone shops and provide hospitality experiences. There was a closed competition in the telecommunications industry.

On the other hand, in B2B2X, companies in other industries are the center B, that is, the center B operator. It is a business model that provides new experiences to customers and innovates operations (Fig. 1).

Figure 1: B2B2X type business model

To give you a concrete image, let's take a look at a company called LIVE BOARD, which was established in the DOOH (Digital Out Of Home) field. The company is a joint venture established by NTT DoCoMo and Dentsu in anticipation of the 5G era. In the 5G environment, outdoor digital signage can be installed without the hassle of complicated wiring, and high-definition video advertisements can be delivered.

In order to deliver advertisements according to the installation location, it is necessary to understand potential viewers, that is, passers-by and consumers. This is made possible by NTT Docomo's dynamic spatial statistics information service "Mobile Spatial Statistics". In other words, it is possible to understand trends such as the demographics of the surrounding area by time of day and where people who are in the installation location of digital signage during the day move (where they live) at night.

In addition, by incorporating a camera into the digital signage, it is possible to grasp not only the demographics as an overview, but also the momentary situation such as what kind of people are in front of the digital signage right now. In order to analyze such diverse information and deliver advertisements with the optimum content at the optimum timing to the location where the digital signage is installed, an analysis platform such as image analysis will be required.

In the B2B2X model, the additional function of the communication line provided by the telecommunications carrier is the secure storage of such dynamic spatial statistical information and the enormous amount of information captured by the camera built into the digital signage. Examples include a database that stores data, and an analysis engine that creates value by applying AI to accumulated data.

XR, which was covered in Part 2, is not only used by telecommunications carriers for entertainment, but is also provided as a function to transform services in other industries. In anticipation of the 5G era, telecommunications carriers are refining not only their networks but also these additional functions.

Published in an archived PDF. Please download it from the link below and take a look.

6th: Risks of 5G

Last time, we introduced the business model B2B2X in the 5G era. This is the final time. Take a look at the risks 5G poses. The all-connected 5G era is a society in which vast amounts of diverse data are circulating. This means that the risk of information leaks and privacy violations increases. Strict personal information protection is a global trend. While efforts are being made to solve the problem through the regulatory framework, companies are also required to take measures. At the same time as ensuring information security and privacy, it is necessary to realize digital transformation through the utilization of data.

In the 5G era, everything will be connected. Not only smartphones but also wearable devices and cameras installed in various places can be connected to the network. At the same time, it means that personally identifiable data flows between devices and converges with service providers. Companies engaged in service provision businesses will be required to ensure thorough information security more than ever before. How to secure people's privacy is an important issue for society.

Strict personal information protection is a global trend. In Japan, the Act on the Protection of Personal Information was enacted in 2005, and was amended in 2017, with further revisions scheduled for 2020. A variety of data linked to individuals is called personal data, of which personal information that should be protected is defined and a legal framework is being developed to stipulate its handling.

In the third installment of this series, we covered the use of personal data in the world of marketing and the acceleration of personalization. It may seem contradictory that regulation and utilization of personal data proceed in parallel. However, stricter regulations do not restrict the use of data, but rather clarify the rules.

Specifically, we will clarify the data to be used and the purpose of use, ensure that it is not used without the consent of the person, and attribute the right to manage the data to the person. I think it's easier to understand if companies with data strengthen the brakes so that they can step on the accelerator more safely.

In 2010, in a survey conducted by the Information-technology Promotion Agency (IPA), an independent administrative agency, respondents answered that "the Internet is sufficiently safe and comfortable enough to convey personal details online." was 3% of the total. Distrust of the Internet and concerns about privacy have become conspicuous. Meanwhile, in 2017, Nomura Research Institute investigated the acceptability of information banks, which are mechanisms for safely exchanging personal data with companies (Fig. 1). According to the survey, about 40% of consumers answered that they would like to use services such as improving the accuracy of recommendations, indicating that they are relatively accepted. The Personal Information Protection Law and its amendments have made it possible for personal data to be properly handled, and the benefits of services that utilize personal data have increased. It can be said that the way we perceive is changing.

Figure 1: Acceptability of services using information banks (Source: Nomura Research Institute, NRI JOURNA website, https://www.nri.com/jp/journal/2018/0418)

In the 5G era will generate vast amounts of personal data of varying quality. For companies, the more data they collect, the greater the risk of information leaks and privacy violations. However, if you avoid using data, you will not be able to achieve your company's digital transformation and will be left behind in the competitive environment. Companies are required to navigate difficult situations.

Published in an archived PDF. Please download it from the link below and take a look.

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