Issue 1 | Winter/Spring 2020
Featured articles
Welcome to 2020 A look ahead at the top trends From smart cities to the clever countryside Accelerating the transition
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Table of contents
Ericsson  |  Regional Connect Magazine
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Welcome to Regional Connect
Connect 04
The switch to 5G took center stage at the CCA Annual Fall Conference
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Meet the expert: Bill Chotiner
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Treasuring the beauty of community and the Blue Ridge Mountains
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Connecting Kentuckians to what they love
Share 10
The benefits of dual-mode 5G Core
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Accelerate the transition to a clever countryside
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Our latest 5G business potential report: Set your compass now
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Top trends for 2020
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Ask the expert
Serve 22
Partnering for a cure
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Stories of impact from the Regional Connect community
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Success story: Turning secluded into included
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Why Ericsson?
Ericsson | Regional Connect Magazine
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I am pleased to share with you the first issue of “Regional Connect Magazine,” our new semiannual publication for regional carriers. In September at the Regional Connect Summit (formerly known as the North American Customer Summit), I introduced attendees to Regional Connect —a community for regional carriers. Communities play an important role in every aspect of our lives. They provide knowledge, support and a sense of connection. At Ericsson, we see regional carriers as a special community that is unified under one mission: Provide world-class technologies and service to everyone, everywhere. As a partner to more than 70 regional carriers, we want to help you reach that mission. The foundation of Regional Connect rests on three pillars: connect, share and serve. When reading this magazine, you will see how the articles fit the pillars.
Do you have a success story you’d like to share? Has your enterprise had an impact in your community? Contact your Ericsson account representative to be featured in the next issue of “Regional Connect Magazine.”
Welcome to Regional Connect A community of thinkers, doers, engineers, technicians, and entrepreneurs united under the mission of providing world-class technologies and service to everyone, everywhere. Discover the power of community – watch the video.
The power to connect: Connect with peers and develop relationships within the community. In this issue, we will introduce you to two of our partners, Bluegrass Cellular and Carolina West Wireless. You’ll also “meet” Bill Chotiner, CTO for Regional Carriers, and learn about his early start on Broadway! The power to share: Share stories of success and new technology insights driving us to make things better. Read about how the “clever countryside” is the new “smart city” and learn about the top trends for regional carriers in 2020. The power to serve: Serve the communities we live in and keep our customers connected. We are featuring GCI’s quest to connect rural Alaska and the impact that it has had in its most rural communities. We also highlight some examples of how our partners are investing in their communities to make them a better place. We hope that you enjoy this issue of “Regional Connect Magazine.” As we look toward the future, we see unlimited potential for our partnership and this new community. Welcome to Regional Connect – the power of community. Robert Johnson Head of Customer Unit Regional Carriers, Ericsson
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Ericsson | Regional Connect Magazine
Connect
The switch to 5G took center stage at the CCA Annual Fall Conference CCA Annual Fall Conference and Regional Connect Summit September 16-18, 2019 | Providence, Rhode Island
Upcoming events Mobile World Congress February 24-27, 2020 Barcelona, Spain | Hall 2, Stand 2060 CCA Mobile Carriers Show Ericsson accepting annual achievement award at CCA
Ericsson hosted more than 535 registrants from 222 companies at their biggest event of the year, the Competitive Carriers Association’s (CCA) Annual Fall Conference in Providence, Rhode Island. Following the conference, 36 companies attended the Regional Connect Summit, formerly the North America Customer Summit. Both events focused on the theme, “Switch to 5G,” which touts Ericsson’s ability to help regional operators leverage their 4G LTE networks as they move toward 5G. At CCA, Ericsson was a Pinnacle sponsor and had a strong presence at the show
March 30 – April 1, 2020 Dallas, Texas
with the largest booth and robust thought leadership including two keynote panels, one sponsored session and panelists in three sessions during the regular conference tracks. In addition to thought leadership and booth demonstrations of 5G, IoT and analytics, Ericsson received the Outstanding Service Award for our reach-out work with the Ericsson-Girl Scouts Alliance. Head of CU Regional Carriers Rob Johnson accepted the award at the event on behalf of Ericsson. The one-and-a-half-day Regional Connect Summit event followed CCA and
had 75 customer attendees including CCA CEO Steve Berry who participated on the first day. Ericsson’s main event at the Summit was the launch of Regional Connect, our new community for regional carriers. The event also showcased seven demonstrations, as well as thought leadership keynotes, in-depth technical sessions, executive and technical roundtables and networking activities. “The Regional Connect Summit and CCA provides an incredible opportunity for us all to connect as a community, exchange ideas and learn from one another,” said Johnson.
Ericsson | Regional Connect Magazine
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Meet the expert Ericsson’s “Regional Connect Magazine” recently sat down with Bill Chotiner, Chief Technology Officer, Regional Carriers Customer Unit, to learn how he became a technology expert, why he’s passionate about our industry and bullish on the future of 5G, and what makes him tick. Turns out he not only has a well-rounded understanding of the wireless business – from RF to the voice and pocket core side – and Ericsson’s customers, but he’s also a family man, who had an early brush with stardom.
Q: Why do you love what you do? A: I work for a great company. We have great technology and great people – and I have great customers. Every day I come in, I get to help my customers solve problems, and really work with them to make a difference. Q: What are you really excited about in the industry right now? A: When I look at 5G, I say, “5G will change the world.” And we don’t even know how yet. I can go back 10 years ago, when were just starting to roll out LTE. We didn’t know that the whole taxicab system was going to be different due to something like Uber. I think 5G has so much promise. It’s going to be transformative, and we haven’t even gone below the water of the iceberg yet. 5G is going to connect households, connect buildings. Today, that’s not done well in the rural segment. So I think that’ll really be the first good use case of 5G for the rural customers.
To hear more of Bill’s story, watch this video.
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Ericsson | Regional Connect Magazine
Treasuring the beauty of community and the Blue Ridge Mountains In western North Carolina, the blue hue of the mountains fading into the sky takes your breath away. But those gorgeous mountains make for a tough area to cover with wired and wireless communications. Fortunately, the communities deep in the heart of the Blue Ridge Mountains can count on Carolina West Wireless for highquality wireless communication. When Skyline Telephone, Surry Telephone and Wilkes Telephone banded together to form Carolina West, they created a wireless network that delivered the same types of service and value to rural communities as the residents of Raleigh, Charlotte and Winston-Salem enjoyed. Today, that same commitment holds true. Carolina West Wireless recently launched its 4G LTE network, marking a key company milestone and faster speeds for customers. “Regional Connect Magazine” caught up with CEO Slayton Stewart to learn more about Carolina West Wireless.
Q: Tell us about the communities Carolina West Wireless serves. A: Our main industries are agriculture, manufacturing, furniture and lumber. We have a number of universities in the area, including Appalachian State, Lees-McRae College, Lenoir-Rhyne and an extensive community college system. Additionally, tourism is big, as people can’t resist the mountains’ fall foliage. Musical roots run deep here. Every year, more than 100,000 visitors from around the world flock to the region to catch notable acts (including Willie Nelson, Randy Travis, Steve Martin and Zac Brown Band) at MerleFest.
And many people may not know it, but NASCAR started here. Back when bootleggers transported moonshine over the county lines, they modified their cars to evade the police. That habit of modifying cars and racing them turned into NASCAR. Q: What are Carolina West Wireless’ core values? A: We have four pillars of success: network, value, people and local. We try to create the best network possible because that’s something our customers deserve, and frankly, need. We aim to provide our customers with better value than residents of
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“We try to create the best network possible because that’s something our customers deserve, and frankly, need.“
North Carolina’s metro areas receive. People refers to both our customers and employees: We want everyone to be happy and continue to come back. Finally, local refers to being a good community citizen. We give back and support whatever we can – schools, local hospital expansions, kids’ sports teams, volunteer fire departments and more. Q: What do you enjoy about serving this community? A: Carolina West is owned by co-ops, which means that indirectly we’re owned by the community. There’s more to return to the community than just financial results. We invest in community events, sponsor universities and capital projects and employ as many people as we can – in other words, we help the communities we serve thrive. But the best part is being a part of a community, and feeling connected to the friends and neighbors we serve.
Q: What excites you about the future of 5G? A: For us, it’s about reaching areas that we don’t reach today with a high- quality broadband service. We still have plenty of customers who only access broadband with a satellite. 5G will allow us to provide faster speeds and a better customer experience throughout our network. Q: What do you value most about your partnership with Ericsson? A: I’m impressed with Ericsson’s commitment to the U.S. wireless market. They commit leaders and resources to associations like Competitive Carrier Association and CTIA. I serve on both of those boards, and we deal with industry operational and regulatory issues. Ericsson is always willing to help us with these issues so that we can ensure the business environment sets us all up for success.
Q: What is one thing you’d like people to know about Carolina West Wireless that they likely don’t know? A: In addition to supporting our community and providing highquality service, we work really hard to make sure our employees are happy working here. We strive to provide the right work-life balance and the highest quality benefits, including a pension fund. Recently, we received some validation that we’re on the right track. Our employees voted us “A Great Place to Work,” and we are now certified as such in the U.S. That’s something we’re very proud of, and we will continue to work hard to keep our employees happy and successful.
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Ericsson | Regional Connect Magazine
Connecting Kentuckians to what they love From the moment Bluegrass Cellular turned on its towers in May 1991, the radios have been filled with people using their services. Your Community Expanded. Bluegrass Cellular’s tagline says a lot about the value they deliver to customers. They provide the services customers need locally, as well as nationwide and even internationally. Bluegrass Cellular is part of Verizon’s LTE in Rural America (LRA) program, which helped them become one of the first regional carriers to have 4G. “Regional Connect Magazine” chatted with Barry Nothstine, vice president of sales and marketing, and Doug Updegraff, Vice President and Chief Technology Officer, to learn more about “this tough little carrier.” Q: Tell us about the communities Bluegrass Cellular serves. A: We cover 34 counties in south central Kentucky. Basically, we’re located in the heart of the state. We cover the
heavy traffic areas of I-65, Cumberland Parkway, Bluegrass Parkway and the Western Kentucky Parkway. Often, this area is referred to as the Golden Triangle. It’s where the traffic and the industry are in Kentucky. Bowling Green, the state’s fastest growing city, is in our service area. We serve a lot of consumers, small and mid-sized businesses, family farms, lumber yards and automotive manufacturers. Q: What do you enjoy about serving this community? A: We give our customers what people in the big cities have. They deserve the same services that residents of Louisville receive, and we make that a reality. We help everyone keep in
touch with the people they love and the things they need to know. Q: Tell us about Bluegrass Cellular’s mission. A: Our mission statement can be summed up simply: Treat our customers like good friends. When you’re friends with someone, you take care of them, listen to them and try to do things that make them happy. That’s exactly what we do. Customers know that if they have a coverage need, we’re going to listen and do our best to help them out. We have a strong history, but we can’t rest on our laurels. We’re going to be competitive, stay on the cuttingedge, and not give up because we know that we’re the only company that can provide this level of service to our customers, our friends.
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“We give our customers what people in the big cities have. They deserve the same services that residents of Louisville receive, and we make that a reality.”
It’s also important for us to be a part of the communities we serve because we live here. We strive to be a good neighbor by supporting school drives and giving back in other areas. Q: What do you value most about your partnership with Ericsson? A: Having a partner like Ericsson helps us manage the technical transitions that we have to go through. Knowing they’re here, with the cutting-edge technology and support, calms the nerves and helps us feel better about where we’re headed. We’ve made it through several of the “Gs” with Ericsson’s help. We’re at the forefront of their RAN network. We were one of the first small carriers to turn up voice over LTE (VoLTE) on
our network. Ericsson helps us keep up with the industry and make sure we’re giving our customers the latest and greatest – so they can have faster and better service that enables them to keep in touch with the things they love. Q: What is one thing you’d like people to know about Bluegrass Cellular that they likely don’t know? A: We’re proud of what we’ve accomplished over the years… being first to provide wireless service to this area in Kentucky and first with all of the technological transitions (TDMA, CDMA, 1X, EVDO, 4G). Our customers know they can rely on us and that they won’t be left behind. We are a regionally owned and operated carrier, but by no means does that imply we’re inferior to the tier-one
carriers. We offer nationwide and international coverage just like they do and similar products and services. In some cases, we’ve launched products before the nationwide carriers. And our award-winning hometown customer support provides a local touch that no one else can offer.
Would you like to be featured in the next issue of “Regional Connect Magazine?” Contact your Ericsson account representative to learn more.
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Ericsson | Regional Connect Magazine
Share
The benefits of a dual-mode 5G Core Taking a dual-mode approach to core evolution Ericsson’s knowledge and experience now apply to 5G. Commercial deployments will feature one core for multi-access and service delivery, known as a “dual-mode 5G Cloud Core.” This solution enables communications service providers to introduce 5G services flexibly and at their own pace, supporting current services while reducing total cost of ownership (TCO) with an all-cloud native solution. Simultaneously, Ericsson is introducing new network exposure capabilities, which will drive new revenue opportunities by making the core network truly programmable. Network traffic and subscription forecasts continue to grow, boosted
by the anticipation of new 5G-enabled applications and complementary technologies, such as the Internet of Things (IoT) and vehicle-to-everything (V2X). By 2024, mobile data traffic is expected to see a 30 percent compound annual growth rate (CAGR) – 35 percent of which is carried by 5G networks. Next-generation technologies will help create applications that are not yet imaginable, but delivering them reliably and profitably requires an efficient, flexible and programmable core network.
Steps to a smooth 5G introduction From a core perspective, there are two main phases to supporting 5G New Radio (5G NR). The first phase – non-standalone (NSA) – is based on an enhanced Evolved Packet Core (EPC), which Ericsson calls 5G EPC. This phase supports 5G NR radio using an updated 4G core. The second phase – NR standalone (SA) – is a new 5G core (5GC) built on a service-based architecture (SBA). The timings and steps each service provider takes on their 5G journey will
The many cost efficiencies of dual-mode 5G Cloud Core Cloud Core Data-Storage Manager
Cloud Core Resource Controller
Cloud Core Subscription Manager
Cloud Core Policy Controller
Data layer
Cloud Core Exposure Server
SBA architecture
Pocket Core Controller
Signaling Controller Control plane
NR SA LTE / NR NSA LTE GSM / WCDMA
Pocket Core Gateway
Key benefits of Ericsson’s dual-mode 5G Cloud core: • 20-percent savings in infrastructure • 75-percent cost savings in network and O&M integration
• 30-percent less user plane footprint • 90-percent reduced opex for software upgrades
User plane
Ericsson | Regional Connect Magazine
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Key benefits of dual-mode core depend on market conditions and when it makes most business sense. Regardless of where you are on your journey, Ericsson’s dual-mode solution for 5G EPC and 5GC Network Functions (NFs) will support your current services, fast and flexible 5G introduction and smooth network evolution, at your own pace. A single platform for (5G) EPC and 5GC functionalities Ericsson’s dual-mode 5G Cloud Core solution delivers cloud-native applications that support EPC and 5GC 3GPP architectures, in a single software platform for operational efficiency. The solution consists of Cloud Packet Core, Cloud Unified Data Management (UDM) and Policy, as well as Signaling Controller NFs in eight new products – supporting every generation of mobile traffic from 2G to 5G. Ericsson’s solution protects existing network investments by allowing full integration of new cloud-native NFs with virtualized or physical NFs in the same network, and offers different migration paths to bring all NFs into the full cloud-native, dual-mode 5G Cloud Core over time. Cloud-native and microservicebased architecture The dual-mode 5G Cloud Core solution is based on cloud-native principles, with a software architecture underpinned by microservice technology. This approach provides the elasticity to scale according to capacity needs and permits high levels of orchestration and automation. Importantly, it also supplies a software solution agnostic of the underlying infrastructure, delivering flexibility and cost efficiency for service providers. Basing Ericsson software on microservices improves software quality, minimizes risks and brings new functionalities to the market faster. Continuous software integration, delivery and deployment (CI/ CD) is fundamental in the approach to leveraging cloud-native benefits. Along with the continuous flow of software upgrades, Ericsson is introducing “zero touch” to automate the software pipeline. Collectively, these measures continuously improve software quality, ensure faster time to market for new services and provide up to 90 percent CI/CD savings in a fully cloud-native environment.
Learn more about dual-mode 5G core here.
Maintain a more efficient network
Future proof your investment
Migrate to 5G at your own pace
Manage different deployment models (i.e., IoT and edge use cases)
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Ericsson | Regional Connect Magazine
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Accelerate the transition to a clever countryside A central theme for economic development at the beginning of the 20th century was the creation of farm roads, connecting rural farms with urban markets. Today, we face a similar challenge, where smart cities need to interface with digital rural communities, for all of America to prosper.
Smart cities cannot carry the economic growth burden alone, and many businesses belong in the countryside. The creation of a clever countryside, connected to smart cities, is a survival question for rural communities. The U.S. has 1,976 counties classified as micropolitan or rural, with the population growing faster than the national average in 133 counties,1 and growing, but at a slower rate, in 477 counties. 76% of citizens in rural areas use broadband daily, but only 63% have access to fixed broadband, and 71% have a smartphone. 24% of rural consumers see broadband as a concern.2 These statistics give us a reason to focus on underserved, rather than just unserved markets. Four areas stand out as lowhanging fruit for the next three years:
• Rural communities with a growing population/economy • Underserved rural broadband consumers who want a better broadband service • Rural communities that rely on businesses that fit well in rural areas, both short and long term • All households that are above the poverty line in rural areas Momentum for the clever countryside is growing. Broadband in rural communities is a central theme for the 2020 elections. The FCC has suggested a $20.4 billion “rural digital opportunity fund” to increase broadband penetration in rural areas.3 A 5G-based rural broadband buildout is a condition for the merger between Sprint and T-Mobile. A dedicated $1 billion fund is in the works for modernizing rural mobile infrastructure.4
1 “Rural Economy.” USDA ERS - Rural Economy, www.ers.usda.gov/data-products/ag-and-food-statistics-chartingthe-essentials/rural-economy/. 2 Perrin, Andrew. “Digital Gap between Rural and Nonrural America Persists.” Pew Research Center, 31 May 2019, www.pewresearch.org/fact-tank/2019/05/31/digital-gap-between-rural-and-nonrural-america-persists/. 3 “FCC Proposes $20.4 Billion Rural Digital Opportunity Fund.” Federal Communications Commission, 2 Aug. 2019, www.fcc.gov/document/fcc-proposes-204-billion-rural-digital-opportunity-fund. 4 Pallone, Frank, Jr. “Text - H.R.4459 - 116th Congress (2019-2020): Secure and Trusted Communications Networks Act of 2019.” Congress.gov, 24 Sept. 2019, www.congress.gov/bill/116th-congress/house-bill/4459/text.
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Ericsson | Regional Connect Magazine
Today, 6.5% of U.S. electricity comes from wind turbines and 1.5% from solar panels, with growth projected over the next decade. A clever countryside has all green energy sources integrated into a smart-grid structure.
Where a clever countryside can make a difference A clever countryside relies on the potential of network digitalization, in the same ways a smart city does. The most significant difference is in the challenges to address – the specific needs of micropolitan and rural businesses as well as local and state government functions. Primary and college education Access to broadband is a prerequisite for primary education. In some school districts, digital education assets have replaced books for teachers and students. Even if schools are connected, broadband is needed at home for preparation and homework. The most extreme form of digital divide is between students who can and cannot do their homework at home. 15% of American households with schoolaged children do not have high-speed access at home. This figure grows to 35% for families with a yearly income below $30,000.5 In a clever countryside, all teachers can prepare for their classes, and all K-12 students can study in school and at home. Access to a college education defines life choices by young citizens in their late teens. For previous generations, a college education meant a move to a town or city with a college. But in a digital world, anyone
can access college education remotely, as long as they have broadband access. For example, study-motivated citizens can continue to live in the rural community where they grew up while pursuing a higher education. In a clever countryside, you develop the local talent before you lose it to a bigger town or a city.
complex, energy provisioning is becoming more sophisticated. Today, 6.5% of U.S. electricity comes from wind turbines and 1.5% from solar panels, with growth projected over the next decade.6 A clever countryside has all green energy sources integrated into a smart-grid structure.
Remote access to specialist healthcare Access to healthcare is a crucial decision criterion for where live. The urbanization trend caused the older generation to stay in rural areas and the younger generations to move to more urban areas. Fast forward a decade or two, and this has created a growing healthcare burden carried by a shrinking population. A clever countryside secures primary healthcare locally – with remote access to specialist care. Broadband-connected patients and doctors create a new landscape for how to provide preventive and emergency care.
Precision agriculture Existing agriculture land is projected to feed a growing global population. To maximize productivity, precision agriculture is replacing traditional agriculture methods, with data-driven approaches and remotely operated machinery. Still, 25% of U.S. farms lack any form of internet access – not just broadband access.7 The FCC has recently suggested an initiative to cover 95% of U.S. farmland with broadband by 2025.8 A clever countryside embraces the precision agriculture movement and leverages mobile broadband for farms and farmland.
Connected green energy grids Green energy production from wind turbines and solar panels thrives in rural communities where wind is in steady supply and the sun frequently shines. These energy forces are attractive. But with a weather-dependent supply-side and a demand-side that is becoming more
Manufacturing and logistics Small and medium manufacturing plants thrive in rural communities, where production previously offshored to low-cost countries is returning. U.S. manufacturing provided 12.85 million jobs in 2018, representing 8.5% of the workforce.9 Manufacturing is an essential part of the
5 Anderson, Monica, and Andrew Perrin. “Nearly One-in-Five Teens Can’t Always Finish Their Homework Because of the Digital Divide.” Pew Research Center, 26 Oct. 2018, www.pewresearch.org/fact-tank/2018/10/26/nearly-one-in-five-teens-cant-always-finish-their-homework-because-of-the-digital-divide/. 6 U.S. Energy Information Administration - EIA - Independent Statistics and Analysis. ”What Is U.S. Electricity Generation by Energy Source? - FAQ - U.S. Energy Information Administration (EIA),” www.eia.gov/tools/faqs/faq.php?id=427&t=3. 7 “Farm Computer Usage and Ownership” United States Department of Agriculture, 19 August 2019, https://downloads.usda.library.cornell.edu/usda-esmis/files/ h128nd689/8910k592p/qz20t442b/fmpc0819.pdf 8 “FCC Announces Precision Ag Connectivity Task Force, Seeks Applications.” Federal Communications Commission, 24 Sept. 2019, www.fcc.gov/document/fcc-announcesprecision-ag-connectivity-task-force-seeks-applications. 9 Amadeo, Kimberly. “5 Reasons Why America’s Manufacturing Is Growing Again.” The Balance, 22 Oct. 2019, www.thebalance.com/u-s-manufacturing-what-it-is-statisticsand-outlook-3305575.
Ericsson | Regional Connect Magazine
local economy in 348 micropolitan and rural counties.10 A clever countryside supports the manufacturing sector with a high degree of automation in factories and fully connected logistics routes. Outdoor recreation Outdoor recreation is a growing sector of the rural economy. The high quality of life makes local citizens stay and draws people from urban areas. 224 rural and 85 micropolitan counties in the U.S. are considered recreation counties. The population growth in these counties was 0.1% the past decade (2010-2019), while non-recreation counties fell 2%.11 A clever countryside offers tourists and visitors access to broadband as if they were at home, so they can share and promote their experiences and stay connected. Digital jobs and businesses Digital firms and employment represent a category of jobs that can grow in rural and micropolitan counties. When compared to a metropolitan area, work commutes get shorter, access to outdoor recreation is around the corner and the cost of living is lower. These benefits are attractive for a portion of the workforce at various stages of their lives. A clever countryside unlocks the potential for digital jobs, businesses and sales channels, with a focus on one-person companies and small businesses. This sector is easy to develop, once the necessary mobile broadband infrastructure exists.
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Network infrastructure priorities The future network infrastructure in rural and micropolitan communities leverages the same technologies developed for metropolitan areas. Investments are focused on fiber- and radio-based broadband networks to consumers, businesses and local government functions. Multiple providers are candidates to supply these networks: • Large national communication services providers with rural agenda • Regional and local communication services providers with micropolitan and rural markets as the only markets they serve • Wireless internet service providers, established with fixed wireless networks in unlicensed spectrum, now migrating their networks to LTE and 5G network technologies using EBS and CBRS spectrum • New entrants leveraging licensed or unlicensed CBRS spectrum for service delivery Providers have four main primary broadband opportunities in rural and micropolitan communities. First, fiber already connects the central parts of larger towns, and fiber is widely available along primary highways. Cellular network infrastructure complements fiber access for mobile services, and fixed wireless access offers a last-mile alternative to connect homes and businesses using high-gain customerpremises equipment (CPE).
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Second, the fiber along primary highways serves as backhaul for mobile and fixed wireless services in villages and towns along the highways. In some cases, fiber as backhaul is extended via point-to-point microwave links. There is an opportunity to create synergies with one infrastructure for both mobile and fixed wireless services. Third, for the portion of towns not yet covered by fiber access, fixed wireless access is a new tool in the toolbox. It offers similar advantages in the outskirts of towns as in villages along highways. The challenge is to define how far to take fiber access, and which portion to serve with fixed wireless access. Fourth, wireless with cellular or satellite solutions is the only option for tiny villages or remote households. The most difficult and most costly houses to reach are addressed as the last priority once the previous three opportunities are penetrated. Cities adopt smart city initiatives to stay relevant. Rural communities face a choice of an increasing digital divide or an accelerated agenda to become a clever countryside. The latter being a prerequisite for rural communities to stay connected and relevant in the digital age. As we’ve proven, there are a number of areas where regional communication service providers can focus initial efforts – and help create prosperity in the communities they serve.
Peter Linder, Head of 5G Marketing, Ericsson North America
10 “Description and Maps: County Economic Types.” USDA ERS, www.ers.usda.gov/data-products/county-typology-codes/descriptions-and-maps/. 11 “Recreation Counties Attracting New Residents and Higher Incomes.” Headwaters Economics, January 2019, https://headwaterseconomics.org/wp-content/uploads/ recreation-counties-attract-report.pdf
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Ericsson  |  Regional Connect Magazine
Our latest 5G business potential report: Set your compass now
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As part of Ericsson’s promise to “share” important information with our partners, we will highlight a report that may be of interest to regional carriers in each issue of “Regional Connect Magazine.“ For our inaugural issue – and because 5G is such a hot topic – we are focusing on 5G business potential.
Global 5G deployments are well under way. However, many communications service providers have not yet invested in realizing the business potential of 5G. So let’s clarify: The business opportunities for 5G, beyond enhanced mobile broadband, are significant. But how significant? Industry digitalization will generate an estimated $700 billion addressable market opportunity for service providers by 2030, which we cover in-depth in our latest 5G business potential report, 5G for business: a 2030 market compass. Let me introduce you to the key insights and the opportunities. Ericsson has been researching business opportunities for service providers since 2016, and has evolved its model to provide clear insights into the market outlook. The study is the first of its kind where valuebased studies are concerned, and takes a holistic perspective for service providers by quantifying the value of their potential addressable market across more than 200 use cases, 10 different industries, and a set of 5G-enabled business-to-business (B2B) use case clusters. Here are my top three findings:
1. Proven significant opportunities for service providers Industry digitalization is expected to result in a surge for ICT B2B revenues, some of which will be driven by 5G. Ericsson anticipates that of the total 5G-enabled value in 2030, up to 47 percent is addressable by service providers. This is based on the value of the global total addressable “5G for industrial digitalization” revenues across the 10
industries involved. Just as importantly, we now see that 5G-enabled B2B value is ramping up in different ways than we previously expected.
2. The journey to grow 5G business starts now Service providers have the opportunity to play an important part in shaping industry digitalization and could take up a variety of key roles to help shape the 5G ecosystem, whether it’s through connectivity provisioning, business service delivery or end-user applications, for example. From the combined view of our 10 selected industries, the research identifies a global addressable market opportunity of up to 35 percent by 2030, on top of the value of the offerings currently available from service providers today. Service providers should prepare to cultivate new 5G-enabled enterprises, and shape industry development that truly monetizes 5G. Industry examples we’re already seeing advance to 5G typically build momentum using private networks, such as in Germany with e.Go and Vodafone in automotive,1 and Deutsche Telekom with campus networks.2 To move away from the present and ensure future opportunities are captured, it’s essential that service providers build early momentum.
synergies needed to be cost-competitive when entering a new market. Instead, grouping use cases with similar attributes together allows us to examine the opportunities also by use case type – or cluster – rather than only by industry. We’ve identified nine use case clusters that cover around 90 percent of the market opportunity for service providers that represent ways to capture economies of scale. Developing deeper insights and taking action It’s not all smooth sailing, however. The 5G-IoT landscape offers enormous potential but is complex and demands a comprehensive understanding if it’s to be fully leveraged. Another reason for service providers to invest early in 5G, business development, and even organizational changes is that they can be fully prepared to grasp these new and developing business models. The time is now. Service providers must act and build early momentum if they’re to be fully prepared for the opportunities that are fast approaching. Let’s build the 5G business of the future, together. Set your compass now!
Jan Karlsson, Senior Vice President, Head of Business Area Digital Services, Ericsson
3. Identify opportunities on which to capitalize by use case cluster Addressing industries separately and looking at one use case at a time probably isn’t the most optimal way to create the
1 “Ericsson, Vodafone and e.GO launch 5G car manufacturing in Germany,” https://www.ericsson.com/en/news/2019/6/5g-car-manufacturng-with-ego-ericsson-and-vodafone 2 ”Deutsche Telekom and Ericsson join forces on public/private campus networks for industrial sites,” https://www.ericsson.com/en/news/2019/8/deutsche-telekom-ericssoncampus-networks
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Ericsson  |  Regional Connect Magazine
Top trends for 2020
Networks will move to virtualization in a big way. The goal is to shift the radio access network (RAN) and the core to be cloud-native and leverage a microservices-based architecture to make deployment easier. Based on Ericsson’s Telco Cloud survey, conducted between November 2018 and February 2019:
46%
of operators have live network functions operating on telco cloud.
17%
were in the requirements definition phase.
4/5
people expect telco cloud to deliver.
8/10 AI and machine learning enable automation. Networks will use real-world data to intelligently and continually optimize based on traffic patterns and network trends. Recent research from Ericsson and Ernst and Young indicate:
service providers expect an increase in cost and complexity from new technology.
90%
believe AI will help balance cost efficiency and customer experience.
15%
of service providers have predictive and proactive capabilities in operations.
Ericsson | Regional Connect Magazine
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Enterprises embrace the advantages of private wireless networks. Industrial digitalization has created demand for local private networks. Industries with critical communication needs can procure private networks and services that leverage service providers’ existing network assets and operations – without compromising local control and quality. Initially, these networks will address basic connectivity. Over time, they will evolve to fulfill business-critical and mission-critical needs addressing various requirements including, latency, data privacy and reliability.
Now is the time to establish a base for 5G. For RAN, this means adding a 5G-capable baseband, modernizing the radios, lighting up unused spectrum, enabling carrier aggregation and establishing the initial 5G carrier. For the core, it’s about getting ready to support 5G protocols and prepare for future services. According to the November 2019 edition of Ericsson’s Mobility Report:
More residential and enterprise customers turn to fixed wireless access. Fixed wireless access (FWA) is no longer a lastresort offering. Data rates offered via FWA are now competitive with high-end xDSL and are growing more competitive with cable and even fiber. While the initial industry push was from wireless ISPs (WISPS) and wireline telcos, we’re now seeing new segments – such as MNOs, MSOs, utilities and private networks – embracing FWA.
2.6 billion subscriptions By 2025, we are expecting 2.6 billion 5G subscriptions with 5G networks covering 65% of the world’s population and generating 45% of the world’s mobile data traffic.
74% mobile subscriptions North America will experience the most rapid uptake with 74% of mobile subscriptions forecasted to be 5G by the end of 2025.
76%
of citizens in rural areas use broadband daily, but only 64% have access to fixed broadband.1
24%
24% of rural consumers see access to high-speed internet as a major problem in their area.2
1 Perrin, Andrew. “Digital Gap between Rural and Nonrural America Persists.” Pew Research Center, 31 May 2019, www.pewresearch.org/fact-tank/2019/05/31/digital-gapbetween-rural-and-nonrural-america-persists/. 2 Anderson, Monica. “For 24% of Rural Americans, High-Speed Internet Is a Major Problem.” Pew Research Center, 10 Sept. 2018, www.pewresearch.org/fact-tank/2018/09/10/ about-a-quarter-of-rural-americans-say-access-to-high-speed-internet-is-a-major-problem/.
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Ericsson | Regional Connect Magazine
Ask the expert For our inaugural “Ask the expert,” Anand Akundi, Vice President and Head of ICT and Managed Services, and Bill Chotiner, Chief Technology Officer for the Regional Carriers Customer Unit, address edge compute, network slicing and O-RAN. Do you have a technical question? Is there something you’ve always wanted to learn more about? Ask our experts. In each issue of “Regional Connect Magazine,” Ericsson experts will answer some of the questions most frequently asked by regional carriers.
Ericsson | Regional Connect Magazine
Q: What is edge compute? Akundi: Essentially, edge compute puts computing power as close to the customer as possible. Many use cases (i.e., gaming, AR, VR) require you to have low latency and massive computing power as close to the customer as possible. Edge compute enables operators to meet these use case requirements. A lot of our customers want to know how to put computing resources close to the customer. Now, the edge could be at the far edge placing computing power at a cell site, or it could potentially be a central office location. How you move computing power out of the central data center, as close to the edge as possible, is essentially what edge compute means. Q: What is network slicing and how does network slicing apply to what I’m doing in my business? Akundi: Network slicing allows you to break your network up or partition it in such a way that you dedicate specific resources, whether it’s compute or transport capabilities, to a certain slice of your network. This enables you to have a different quality of service for different customer and application sets. This also lets you allocate specific compute and transport resources for specific users and network functionality. If your main use case is mobile broadband, you can create a slice that focuses on capacity and not so much on latency requirements. If your use case is latency sensitive (e.g., mission critical, gaming), you could create a slice that provides the best latency experience possible. What that means from a monetization perspective is that instead of having one pipe that serves all your customer sets and use cases, you can now offer customized slices for specific users and use cases and charge appropriately for the specific slices. Network operators, and possibly end customers, can pick the appropriate slice for the specific use case. This slice spans the RAN and core; it’s an end-to-end slice. So each network segment provides the quality of service required for the slices they are carrying. Q: What is O-RAN (or ORAN) and should you care about it? Chotiner: The mainstream radio networks used to provide wireless mobile services today are primarily defined in the 3GPP
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standards organization, which specifies information about the network and equipment functionality, performance, interfaces and protocols between the network logical functions. The most critical interface is the radio interface between the base station and the user equipment, as it allows the capability to have mobile device vendors who differ from the network infrastructure vendor. Open RAN (O-RAN) takes a deeper look at some of the logical functions that are grouped together in the radio network such as the baseband unit. Some of the questions being addressed include: • Does it make sense to separate the logical RAN functions? • If these functions are separated, do they scale differently? • Is it possible to mix and match vendors for various functions to deploy best-inclass for first-in-class functionality? • Can programmability be brought into the RAN (similar to SDN)? You may have heard about virtualized RAN, where we move the upper layers of the baseband stack to COTS hardware. This upper layer split (or CU-DU split) provides independent scalability of the upper layer control and user plane functions in a virtualized environment. We are currently investigating the capability of virtualizing lower layers of the RAN baseband stack. Open interfaces may eventually allow the mixing of logical network functions from different network vendors – although it will come at the expense of integration complexity and lifecycle matching between those vendors. In the foreseeable future, specialized hardware known as “hardware accelerators” will be required to costefficiently address current processing requirements. The lower layer split, which is the capability to support one vendor’s radios with another vendor’s baseband in a standardized manner, is also being investigated. The vision of mixing and matching RAN functions is a powerful enticement, but it comes with significant integration complexity and ongoing lifecycle efforts. In addition, future innovation is gated by the standards definition of the new capabilities prior to their development. Programmability of the RAN in a standardized manner is being further developed in O-RAN. A platform and framework are being defined where third parties develop apps for the RAN in a similar fashion as smartphone apps are
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developed by third parties. As part of a proof of concept, we had an offshore software development company with limited telecom knowledge develop telecom functions that could have been developed through the normal feature development process. In a very short time, they delivered applications to enhance RAN functionality without allocating product development resources. O-RAN promises lots of benefits, but implementation will take time and there will be tradeoffs. Someone will have to be responsible for the integration effort and associated costs when products and solutions are delivered by multiple vendors. Along with the initial costs of putting the pieces together, there are ongoing costs to ensure products work across releases as new functionality and code changes are introduced. While O-RAN could add complexity to your network, it will allow your network to grow in ways you haven’t thought about. We firmly believe that over time O-RAN (or the objectives of O-RAN) will impact the RAN in ways we have not yet envisioned.
Anand Akundi, Vice President and Head of ICT and Managed Services, Ericsson
Bill Chotiner, Vice President and Chief Technology Officer for the Regional Carriers Customer Unit, Ericsson
Want to ask our experts to shed light on a certain topic? Submit your questions by contacting your Ericsson account representative.
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Ericsson | Regional Connect Magazine
Serve
Partnering for a cure
For more than 30 years, Ericsson has partnered with JDRF, a leading global organization that funds research into type 1 diabetes (T1D). The organization envisions a world without type 1 diabetes, and works to accelerate breakthroughs to cure, prevent and treat T1D. In November 2019, Ericsson hosted JDRF’s ONE Walk on our campus in Plano, Texas. For the third year in a row, Ericsson employees from the 7 employee resource groups and 11 functional units in MANA, along with their friends and families, participated as volunteers, walkers and supporters. In addition to the annual walk, Ericsson matches 100% of employee donations to JDRF, and regularly holds smaller events such as auctions, bake sales and ping-pong tournaments.
Since 2012, Ericsson has donated more than half a million dollars to JDRF. But our dedication isn’t simply financial. T1D patients often rely on IoT solutions to manage their health. For example, continuous glucose monitors can send alerts to phones to notify patients of a “high” or a “low.” Other developments, like artificial pancreas (AP) systems, will use connected technologies to automate processes a healthy body does on its own. For the last two years, Ericsson
has supported multiple IoT solutions for diabetes. Currently, Ericsson’s subscriber identity module (eSIM)-based cellular network is part of a pilot for a Swedish startup’s IoT-based glucose reader and insulin injector in the United Arab Emirates.1 Through our ongoing support of this important organization and the development of life-saving IoT devices, we’re confident that one day JDRF’s vision of a world without T1D will be a reality.
1 Clair Swedberg. “IoT Technology Helps Diabetic Patients Share Data.” RFID Journal, November 4, 2019. https://www.rfidjournal.com/articles/view?19025/
Ericsson | Regional Connect Magazine
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Stories of impact from the Regional Connect community In each issue of ”Regional Connect Magazine,” we will celebrate the philanthropic efforts of regional carriers. Thank you for everything you do to make your communities better and stronger.
Connecting young minds to an educated future Panhandle Telephone Cooperative, Inc. (PTCI) aims to deliver high-quality communication services that enhance the lives of customers in the Oklahoma panhandle region. As part of their commitment to their customers, PTCI
will award 25 $1,000 scholarships to students based on their academic record, future promise and financial need. Scholarships will be rewarded in early May 2020 for use during the 2020-21 school year.
PTCI will award 25 $1,000 scholarships to students based on their academic record, future promise and financial need.
Virtual reality fully immerses students in lessons Cellcom, a Wisconsin-based regional carrier and wireless communication device provider, brings virtual reality to fruition at nearly 40 local schools. Now in its fourth year, the VR Kits for Classroom program distributes free VR readers and loaned smartphones to students from elementary to high school, giving them the opportunity to experience content in a hands-on, immersive and engaging manner. Classrooms embarked on African safaris, swam with sharks in the ocean, and travelled through the bloodstream to see how the human body systems work together. Others used VR to make the connection between building an app and coding. With the explosion of VR apps and Cellcom’s program, the possibilities of where educators can go with their students and what they can do with virtual reality is limitless.
Showcase your commitment to your community. Submit your story of community service for the opportunity to be included in the next issue of “Regional Connect Magazine.”
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Ericsson | Regional Connect Magazine
Success story
Turning secluded into included For more than 40 years, GCI has been committed to providing all Alaskans the best connectivity possible. They provide communication and technology services in some of the most unforgiving and remote areas of the world. For the last decade, they have been working with Ericsson to bring the Terrestrial for Every Rural Region in Alaska (TERRA) network to life. “Alaska is home to some of the most challenging weather and geography in North America, which makes connecting nearly 45,000 Alaskans to a wealth of online resources a tremendous accomplishment,” said Martin Cary, GCI Business Senior Vice President. One of the largest fiber-microwave networks in the country, the TERRA ring
Connecting nearly 45,000 Alaskans to a wealth of online resources is a tremendous accomplishment...
provides enhanced network capacity and reliability to more than 84 rural interconnected communities and villages – many of which are hundreds of miles apart. Now these remote communities, which are essentially roadless, landlocked islands that depend exclusively on air travel, have access to high-speed broadband access and cellular service.
They can see things and share things – instantaneously. Schools and their students, regional health corporations and their patients, and Alaska Native businesses and their shareholders are all benefiting from the TERRA ring. Now, the lack of roads doesn’t mean anything anymore. The unconnected are truly connected.
Ericsson | Regional Connect Magazine
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The human stories of connection – in the coldest, most extreme parts of the U.S.
Introducing students to the world outside their village
Through high-speed internet connections, students in these remote villages are able to meet students from across the globe, share their cultures and learn about other parts of the world – right from their classrooms.
Linking all 352 miles of a race across tundra, forests, mountain passes and rivers
Every year, mushers and their sled dogs race through blizzards, subzero temperatures and gale force winds in the Iditarod. En route, these teams were once totally isolated, without any way to call for help should they or their dogs get injured. Now with the completion of the TERRA network, cellular and broadband connectivity is available – even at remote checkpoints – to keep mushers and their dogs safe.
Bringing the doctor to the patient
Access to specialized healthcare was previously hard to come by. Today, specialists can video teleconference into operating rooms in real time and develop treatment plans – which can help save patients’ lives while they wait for a medevac.
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Ericsson | Regional Connect Magazine
Why Ericsson?
Regional focus, global expertise A leading provider of information and communication technology (ICT) to service providers, Ericsson enables the full value of connectivity by creating game-changing
technology and services that are easy to use, adopt and scale – making customers successful in a fully connected world.
Global Headquarters: Stockholm, Sweden
140 years of enabling communication
24,800 R&D employees
180+
95,887
Operates in 180+ countries
employees
49,000
19 5G live networks across 4 continents1
patents 1
As of 10/17/2019
Ericsson  |  Regional Connect Magazine
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North American Headquarters: Plano, Texas
34 Ericsson North America locations in the U.S.
4 5G live networks across the United States2
70+ regional carrier customers
5G smart factory factory producing 5G and Advanced Antenna Systems to open in Lewisville, Texas3
9,487 employees 2
As of 10/31/2019
3
Q12020
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About Ericsson Regional Connect Regional carriers are unique enterprises. They are an integral part of the communities they serve as much as they are businesses seeking growth and sustainability. The Ericsson Regional Connect program was born out of Ericsson’s recognition that regional carriers across the U.S. are united by these common values—and by common challenges: Values we share and challenges our global solutions are perfectly suited to meet. With an array of live and virtual events, online forums and tools, Ericsson Regional Connect comprises a unique community that brings regional carriers together in an unprecedented way: Connect—Ericsson Regional Connect facilitates a wide range of opportunities for professionals in the industry to meet and partner with their peers.
Share—Regional carriers will have access to Ericsson’s global technological leadership and expertise. And they will have a forum for sharing knowledge, ideas and best practices with one another. Serve—Apply what you gain from Ericsson Regional Connect to better serve your customers, connect the unconnected and give back to your communities.
We invite you to explore what Ericsson Regional Connect can do for you—and what you can do for others. Visit www.ericsson.com/regionalconnect
About Ericsson Ericsson enables communications service providers to capture the full value of connectivity. The company’s portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson’s investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world. The Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York.
Ericsson 6300 Legacy Drive Plano, Texas 75024 Telephone (General inquiries): (972) 583-0000 Telephone (Ericsson U.S. inside sales): (833) 374-7253 www.ericsson.com
The content of this document is subject to revision without notice due to continued progress in methodology, design and manufacturing. Ericsson shall have no liability for any error or damage of any kind resulting from the use of this document. © Ericsson 2020