The Digital Economic Experience

Iskriono Windiarjanto
Telkomsel CTO
Outline
• Telkomsel Today
• Technology Journey
• Adoption Story
• Why 5G?
• What is the right strategy to start 5G?
• When will be the right time to start?
• Which is key service for launching?
• What is the key differentiation with older technology?
• What are the key challenges for adoption?
• What are the key benefit for early adopters?
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T-Mobile Game Changer : 5G Ambulance (C-V2X Use Case)
 Study Case : 5G Early Adopters Lessons

Verizon SK Telecom

Motivation Becoming the first commercial 5G service Korea 5G vision is to perfect its 5G equipment offering,
especially in chipsets

Milestone In October 2018 Verizon launched “5G Home”, claimed • In February 2018, Korea’s Winter Olympics pilot demo
as the first commercial 5G service, over its proprietary • In December 2018, Korea’s 5G Day, commercial
5GTF network standard. launching

Technology Introduces
• Speeds range from 300 Mbps to 1 Gbps, depending
on location.
• It offers Fixed Wireless Access (FWA) broadband for
home connectivity in parts of four large cities, with
more in 2019
• Serving the public and user sectors, such as Hyundai,
with an autonomous vehicle
• fibre-to-the antenna to reduce latency in the base
station
• microwave line-of-site backhaul in mmWave bands with
diverse routing for reliability

Pain • Many new cells (small cell approach) • Too expensive, limited customer acquisition and
• High cost government price intervention
• Limited handset

Source : European Parliament 2019

Why 5G?
Most of operator view 5G as path to Network Leadership; Business case has been the biggest challenge in 5G
rollout strategy

Top 3 reason for 5G rollout1 Biggest Challenge in 5G Strategy

Biggest challenge of Biggest challenge is

[ % of respondents ] business case,1 %
5G strategy,1 %
100

76

Top 1 40 75
Reason 67 67
54
48
13 46 46

13 13
33 33
24 9 11
Top 2 13 60
Reason 15
30
9 11
24 22 11
Top 3 17 2
13 11
Reason 9
3
Network Customer Capacity Internet of Fixed New Digital Other Europe Rest of the Multi- Asia North
Leadership Experience Expansion Thing Wireless Adjacencies world country2 America
1100% Access Operator
= 46 operators
2Multicountry-operator responses reflect perspective of CTO
Source : McKinsey 5G Survey 2018
Why 5G ? Excellence Digital Economy Experience
Online Ride-Hailing Tracking

• Accurate rider position update

• Reliable payment
• Enriched with surrounding live camera

Smart Mining Solution

• Improve the safety

Source : GSMA Intelligence, 2018
• Improve productivity

4G is not quite the dominant technology in Indonesia, and we do not expect the 3G • Cost efficiency
lifecycle to reach maturity for several years. However, against a backdrop of
favourable spectrum and investment policies from the government, 4G will
continue to rise to 2025, accounting for an estimated 361 million connections (74%
of total connections) by that point.
Live Broadcasting
Looking ahead, while commercial deployments of 5G services are planned in China,
Japan and South Korea before the end of 2020, the market for this next- • No more cables
generation technology is likely to be at a fairly nascent stage in Indonesia five
years on. • Higher mobility for broadcasters
• Easy to find unique corners
Source : GSMA Intelligence, 2018
What is the right strategy to start 5G?

Increasing long-term R&D efforts on 5G

is essential to understand multiple propagation unknowns, i.e. 5G Garage with ITB

More detailed study of business models

is needed to better define the goals, scope and revenue sources for 5G.

Policy for 5G networks

should be based on encouraging wider divergent use case of services.

Developing a lightweight regulatory framework

for deployment of small area wireless access points (SAWAPs), key to the densified 5G
networks envisaged, is essential for their easy rollout at the very large scale of base
stations necessary

Source : European Parliament 2019

 When will be the right time to start?

The First Adopter Operators

USA (2018-2019)
• Verizon
• T-Mobile
• AT&T
• Sprint

Korea (Commercial launch 2018)

• SKT
• KT
• LG Uplus

Japan (Pilot 2014)

• NTT Docomo
• Softbank
• KDDI

China (Plan to launch 2020)

• China Mobile
• China Telecom + China Unicom (Network sharing)
Source : European Parliament 2019
Gartner : 5G technology is in the peak of hype, and ready within 2-5
years from now (2019)
 Which is key service for launching?

Different Service with Different Requirements • Ultra-fast internet (gigabytes in

Enhance Mobile second)
• Enhanced video (4K, 8K, 3D,
Ultra-high Broadband
360 degree video, ultra HD live
Reliability
streaming on mobile
Ultra-low Energy • Early AR and VR
High Security
• Work and play in cloud
74%
mMTC
Ultra-low Cost
uRLLC
Current Network
High Mobility
Ubiquitous
Coverage

eMBB 21% 5%
Ultra-low
Latency
Extreme Context Ultra-Reliable Low-
Broadband Awareness Massive Machine Type Latency
Communication Communication

• Smart homes • Advance AR and VR

• Smart cities • Connected and autonomous vehicles
• Smart buildings • Industrial and vehicular automation
• Multiple vertical industries • Mission critical broadband (e.g
Source: Huawei (2019) emergency services)
Source: GSMA, ITU, 3GPP and major vendors GSMA CEO 5G Survey (October 2016)
What is the key differentiation with older technology?

Source: Bell Labs, 2017

Source: John Willey and Sons, 2017

What are the key challenges for adoption?

1 Denser Network Costs Might Drive Infrastructure

• Unclear cost and return for investors
• Uncertain policy of local government

2 5G Standards are still to be Finalised

Three spectrum ranges are under discussion for working standard 2019 :

Source : European Parliament 2019

What are the key challenges for adoption?

3 Expensive Handset Price

• Separated 5G chipsets and modems

• 5G chipset has yet adopted multi-spectrums
Source : Dolcort, Jessica, cnet.com, 2019
What are the key benefit for early adopters?

• Competitive Advantage

5G first adopters will have services superiority to all of a

customer's other choices

The customers will potentially engage and stick with the first
adopters

• Aware of their problem or pain, and can actively

attempting to solve a known problem

Experience the pains first, and resolves the pains earlier than
competitors

The first adopters will bring the new product in the different
maturity level to the customers

Source : Multi sources processed, 2019

Lessons Learned and Concerned
Lessons Learned
Still Expensive Technology Adoption
Still many tailored solution due to immature technology had
lead to the expensive cost of acquisition
Technology Standard has yet matured
Discussion around the finalized spectrum is still on going. NSA
and SA choices, chipset development are still in the beginning
phase in major suppliers
Aspect to be Concerned
5G Spectrum Policy
CSP can directly apply 5G technology on existing
spectrum without new license? Or Govt offers new
license for 5G?
End State Technology Target
NSA or go direct to SA ? Since NSA seems like an
intermediary solution for 5G, investing NSA will have a
shorter economic age
Government Stimulus
Due to expensive investment while the business benefits
will still far from the expectation, Government stimulus will
be one the key way out to speed up 5G adoption in
Indonesia
Thank You
Spectrum , Spectrum , Spectrum

• Regulators should aim to make available 80-100 MHz of contiguous spectrum per operator in prime 5G
mid-bands (i.e. 3.5 GHz) and around 1 GHz per operator in millimeter wave bands (i.e. 26/28 GHz).
• 5G needs spectrum within three key frequency ranges to deliver widespread coverage and support all use
cases. The three ranges are: Sub-1 GHz, 1-6 GHz and above 6 GHz.
• Sub-1 GHz (600 Mhz, 800 Mhz and 900 Mhz) supports widespread coverage across urban, suburban and
rural areas and help support Internet of Things (IoT) services
• Sub-6 GHz (2.5 Ghz, 3.5 Ghz, and 3.7-4.2 Ghz) offers a good mixture of coverage and capacity benefits.
This includes spectrum within the 3.3-3.8 GHz range which is expected to form the basis of many initial 5G
services.
• Milli-Meter Wave is needed to meet the ultra-high broadband speeds envisioned for 5G.Currently, the 26
GHz and/or 28 GHz bands have the most international support in this range
5G Spectrum Worldwide

Source : ZyNQ