Verizon beats out UK, EU telcos to bring 5G to British ports
US mobile network carrier Verizon its first industrial 5G deal in Europe (well, in the UK) this week. Beating out local UK-based telecoms and European competitors, Verizon has secured a contract with Associated British Ports (ABP) to install a private 5G network covering the Port of Southampton.
More than £40bn worth of exports, around 900,000 vehicles, and millions of cruise ship passengers pass through Southampton every year, making it one of the UK’s busiest hubs of maritime trade and travel. Until now, according to Verizon, the port’s infrastructure has suffered from “poor wifi connectivity” and the loss of onsite data communications.
Verizon’s private 5G network hopes to change all that. The Verizon 5G platform will “provide ABP with a reliable and secure private wireless data network across selected areas within the East and West Docks of the Port,” allowing digital communications to be consolidated into a single platform, which is intended to reduce complexity and improve the resilience of the network, as well as reducing dead zones and opening up opportunities for new technology applications like drones and high-definition video streaming for maintenance and security purposes.
Southampton docks - Courtesy of Verizon, Inc
The project, according to Henrik L. Pedersen, Chief Executive Officer of ABP, will make Southampton the first mainland port in the UK to be covered by a private 5G network, something he described on Thursday as “a fantastic milestone for ABP.”
The ABP contract is one of the first major announcements since Verizon launched its international 5G platform for global enterprises in October of last year. The US carrier is partnering with Nokia to deliver the platform across its target regions, and “will enable businesses to deploy a private industrial grade dedicated 5G network capability within their premises,” in order to leverage the low-latency, high-speed connections that the technology offers.
“The 5G opportunity will be fully realised with Industry 4.0 as spectrum opens up and private 5G networks go into operation at industrial sites around the world,” said Brian Fitzgerald, SVPof Nokia’s Verizon Business Group.
“We are committed to enabling our strategic partner Verizon Business to expand its 5G global footprint with enterprise customers such as ABP; by providing unprecedented levels of support to drive success for private 5G as well as delivering the highest levels of performance, resilience and security required by its customers”.
Ericsson insight report: What do consumers think of 5G?
Ericsson, a Swedish telecoms company, has released a new ConsumerLab insight report which shows what early adopters of 5G think of the network. Claimed to be the biggest ever 5G consumer study, Ericsson conducted more than 30,730 online interviews with smartphone users between the ages of 15 and 69 across 26 5G commercial markets, as well as non-commercial markets.
According to the company, the study included the opinions of 1.3bn consumers and 220mn 5G users to discover the key trends influencing “the adoption, usage, and perception of users towards 5G.” The report also suggests five steps that service providers can take to meet both current and future customer expectations.
1) Consumer 5G upgrade intention rises in spite of the pandemic
The first finding that the study revealed was that there was a significant increase in the number of people considering an upgrade to 5G either from a 4G-enabled smartphone or a 5G phone with a 4G subscription. The data contained in the study showed that at least 300mn smartphone users aged between 15 and 69 could take up 5G in 2021. On the other hand, 22% more smartphone users with 5G-enabled devices said they could have adopted the 5G network had knowledge apps providing them with information about it been addressed.
2) 5G prompts changes in user behaviour and starts to displace Wi-Fi
The report also uncovered details on how 5G was changing user behaviour, with more consumers preferring it to Wi-Fi. 20% of those surveyed said that they have “decreased their usage of Wi-Fi after upgrading to 5G, while 14% have stopped using Wi-Fi altogether. The data also revealed that 5G users spend two more hours per week using cloud gaming and one more hour on Augmented Reality apps compared to 4G users.
3) Indoor 5G coverage is twice as important as speed or battery life
While 40% of 5G consumers are more than satisfied with the network speeds, indoor coverage was considered more important in driving consumer satisfaction. In addition, only 29% of surveyees said they were “satisfied” with the apps and services available on 5G plans. This meant that around 70% of users were dissatisfied. According to the research, immersive video, which includes Augmented Reality (AR) and Virtual Reality (VR), contributes to 20% of the total time 5G users spend on digital services.
4) 5G users expect more innovation
The results have also shown that 70% of users are not satisfied with the availability of innovative services and “expect new applications to make use of the 5G network”. This clearly leaves only 30% of 5G users who are satisfied with the services.
5) Consumers value 5G plans bundled with digital services
Despite 5G adopters favouring these, around two-thirds of use cases rated by consumers were found only in the research and development stage or the technology showcase and were not available for them to experience, the report shows. Furthermore, a recent ConsumerLab study conducted by Ericsson revealed US$31trn in addressable consumer revenues that will “flow over 5G networks by 2030”. It also showed that service providers could secure USD 3.7 trillion of this when driven by 5G connectivity.
However, according to Ericsson, the greatest revenue boost will, in fact, come from the digital service-bundled 5G tariffs. The aim of this is to “convince consumers of the value of a 5G network platform”, Ericsson says.
Five ways to improve the 5G consumer experience
In addition to finding out adopters’ opinions of the network, the report, based on this information, also suggests five ways that the 5G consumer experience can be improved.
1) Educate and better market the value of 5G
Currently, there is a large gap in knowledge surrounding the 5G network and in terms of making the decision to upgrade. This, the report suggests, is due to “heavy tech jargon” used in 5G marketing confuses consumers and their understanding of its value, capabilities, and what it offers. Research shows that will 4 in 10 users intend to upgrade to 5G globally, only half will do so in 2021, with the rest upgrading in 2022.
Providing a solution to the problem of the “5G knowledge gap”, the report points out that the previously mentioned additional 22% of consumers with a 5G-ready device could have upgraded to the network last year had the value of 5G technology been better marketed, tailoring information to consumers’ needs.
2) Ensure consistent 5G coverage
The report showed that 60% of consumers in Switzerland were satisfied with the network’s performance, compared to 30% who were “very satisfied with the performance of the 4G network. In the US, on the other hand, the study shows 14% more users are "very satisfied" with 5G compared to 4G. It was found that indoor 5G coverage was more important than outdoor coverage, speed, and battery life due to consumers staying at home during the Coronavirus pandemic.
Ensuring consistency of coverage, especially indoors, is a solution and focal point for the future of the 5G network.
3) Adapt to the network requirements for new services
The 5G network is ever-encouraging changes in user behaviour and, with it, brings different service requirements. As mentioned previously, Wi-Fi usage is decreasing both at home and in other locations due to 5G being the preferred choice.
During the pandemic, while staying at home, broadband usage was at its highest according to Ericsson’s report, and some consumers were relying on 5G cellular connectivity as a backup network whenever their Wi-Fi network developed performance issues. However, to ensure 5G has the capabilities to deal with the increased demand, Ericsson believes it is important to adapt it and services providers “need to go beyond existing bundled services such as music and video streaming”, the report says.
4) Focus on what consumers want 5G to do
Ericsson says that another way to improve the 5G consumer experience is to focus on “jobs-to-be-done” or services that consumers want 5G to provide. “Identifying and understanding the jobs consumers want 5G to do is the first step in envisioning and offering use cases that consumers want, especially ones they are likely to pay for”, the company said.
The study highlighted five key jobs that consumers hope 5G will them to do. These are:
- To be productive and efficient
- To be creative
- To provide new ways of connecting and socialising
- The need for novelty (surprise, thrill, discovery)
- Rewarding “me-time”.
Known as the “jobs-to-be-done theory”, the report says that it “provides an anchor point from which service providers can create value via new or existing use cases”.
5) Increase innovation and accelerate the availability of use cases via ecosystem partnerships
Using the jobs-to-be-done framework, Ericsson tested 27 different use case concepts aligned with the consumer needs so that they could assess which concepts consumers feel are worth paying for, while also assessing their current development phase. Below are the results.
- Business ready: Digital services/use cases that are currently being bundled in 5G plans by service providers or are widely available.
- Technology showcases: use cases that are currently relegated to just technology demonstrations by service providers.
- Still in R&D: use cases that require significant research and development to solve technology complexity or see ecosystem readiness challenges.
By obtaining this data, Ericsson is able to assess the ways in which it can increase innovation and improve the availability of use cases as they embark on their mission to improve the 5G consumer experience.
The full report can be viewed here.