Article

The evolution of 5G and its benefits for businesses

The interconnection of markets, sectors, industries, and society will change radically in the years ahead with 5G. Previous generations of mobile communications technology up to and including 4G/LTE were developed primarily for cellphone and smartphone use. The fifth generation of mobile communications and network technology (5G) currently under development aspires to meet the demanding communication requirements in the course of the digitalization of entire industries and our society much more comprehensively than before. A lot has happened since the first generation of mobile communications technology.

July 21, 2022

Stefan Koetz

Acting Head of Market Area Europe & Latin America, Telefonaktiebolaget LM Ericsson

Now 5G is here, and it will revolutionize our professional and private lives. The fifth generation of mobile communications technology promises faster speeds, shorter latencies, and larger bandwidths, thus enabling new use cases such as networked smart vehicles, augmented and virtual reality, and improved gaming and streaming experiences. 5G makes it possible to roll out automated systems, mobile applications, and managed networks of digital devices and smart objects in the Internet of Things (IoT) faster, on a larger scale, and with greater flexibility than before. Yet 5G is not just a catalyst for business innovation, but also is more ecological than all previous mobile communications generations.

Equities

We aim for stable risk-adjusted returns. Choose from traditional active strategies as well as thematic or special investment approaches.

What does the future look like with 5G?

5G lays the groundwork for doing business flexibly, efficiently, and responsibly. It opens cutting-edge possibilities for improving security and sustainability. Ericsson understands that end-to-end 5G network infrastructure vendors are rated on the basis of how well they enable IT provider performance to be competitive, efficient, and effective. A rapid transformation driven by mobile communications technology is underway in every industry, and it is bringing about change in practically every sector through the advent of countless innovative solutions. Any enterprise that harnesses this new degree of connectivity will discover that the possibilities are limitless. The bedrock of this transformation is mobile communications technology, a tool that facilitates a complete digital transformation by enabling fast and scalable connectivity.

Ericsson is driving the buildout of 5G infrastructure in Europe and around the globe as the technological leader. The company currently has 172 commercial 5G agreements with unique communications service providers (CSPs) and powers 121 live 5G networks around the world. Ericsson Digital Services supplies cloud-native dual-mode 5G Core solutions for smarter networks to drive smarter business so that CSPs can offer a multitude of new business opportunities for mobile device users and industries.

Use cases from the automotive industry and gaming sector

New 5G use cases will create new sources of revenue for CSPs and new connectivity possibilities for subscribers. Examples come from an array of different sectors.

Cloud gaming

Augmented and virtual reality

Ericsson, Deutsche Telekom, and Samsung have successfully completed the world’s first 5G end-to-end (E2E) network slicing trial, which was carried out at Deutsche Telekom’s Bonn lab on a Samsung S21 commercial device tethered to a virtual reality (VR) headset. This customer-focused innovation shows the benefits of network slicing optimized for cloud VR game streaming. The trial used a commercial-grade 5G standalone (SA) infrastructure provided by Ericsson, including radio access network (RAN), 5G Cloud Core, slice orchestration, and ordering automation.

The test was carried out for a cloud VR streaming game use case with two independent E2E network slices consisting of a default mobile broadband slice and a cloud VR gaming-optimized slice. The gaming slice was designed and configured to enable higher throughput and stable low latency while also providing resource isolation between the two slices. The trial case demonstrated a superior experience on the gaming slice even under congested network conditions.

Autonomous driving

Technology that keeps moving

Cars are no longer static objects that decline with advancing age. Driven by the transformation toward a software-centered solution, connected cars can be updated throughout their entire life cycle. This enables them to improve and evolve with each new update. But as vehicles become software-driven, the ability to solve software-related issues becomes critical. Cellular connection will ensure that the vehicle will always be the best version of itself.

Use case: Over-the-air updates (OTAs)

Software OTAs offer clear cost benefits to car manufacturers, one example being a reduction in the need for mass vehicle recalls. According to Thales, 19% of all recalls are software-related. Vehicle manufacturers deploying OTA to avoid physical recalls can reap cost savings of 87% or USD 54 per vehicle.

Investing in 5G-based technologies thus pays off for CSPs and the manufacturing industry. Ericsson helps to build and operate the right infrastructure for each new use case so that new applications do not remain merely a vision of the future, but become a reality.

Stefan Koetz

Stefan Koetz (59), graduate engineer, is the “Head of Customer Unit Western Europe, within Market Area Europe & Latin America”. In this function he is responsible for business in Germany, the Netherlands, Switzerland, and the Global Customer Unit Deutsche Telekom. In addition, he is the Chairman of the Management Board of Ericsson GmbH in Germany.

Mr. Koetz has worked in the information and communications industry for more than 20 years. He has held various management positions, including at Robert Bosch GmbH and Marconi Communications GmbH. From 2007 to 2010 he was Managing Director of Ericsson AG in Switzerland.

Inflation: “Some days you tame the tiger. And some days the tiger has you for lunch.”

To what extent and for how long will inflation rise? The uncertainty surrounding the effects of inflation has increased massively. The current situation is calling for existing investment strategies to be reviewed and new opportunities to be evaluated.

The above-mentioned companies are intended for illustrative purposes only and do not constitute an invitation or offer to buy or sell shares or investments.

This material constitutes marketing material of Credit Suisse Group AG and/or its affiliates (hereafter "CS") and provides information on a strategy. This material does not constitute or form part of an offer or invitation to issue or sell, or of a solicitation of an offer to subscribe or buy, any securities or other financial instruments, or enter into any other financial transaction, nor does it constitute an inducement or incitement to participate in any product, offering or investment. This marketing material is not a contractually binding document or an information document required by any legislative provision. Nothing in this material constitutes investment research or investment advice and may not be relied upon. It is not tailored to your individual circumstances, or otherwise constitutes a personal recommendation, and is not sufficient to take an investment decision. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and where legally possible does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. The information provided in this material may change after the date of this material without notice and CS has no obligation to update the information. This material may contain information that is licensed and/or protected under intellectual property rights of the licensors and property right holders. Nothing in this material shall be construed to impose any liability on the licensors or property right holders. Unauthorised copying of the information of the licensors or property right holders is strictly prohibited. This material may not be forwarded or distributed to any other person and may not be reproduced. Any forwarding, distribution or reproduction is unauthorized and may result in a violation of the U.S. Securities Act of 1933, as amended (the “Securities Act”). In addition, there may be conflicts of interest with regards to the investment. In connection with the provision of services, Credit Suisse AG and/or its affiliates may pay third parties or receive from third parties, as part of their fee or otherwise, a one-time or recurring fee (e.g., issuing commissions, placement commissions or trailer fees). Prospective investors should independently and carefully assess (with their tax, legal and financial advisers) the specific risks described in available materials, and applicable legal, regulatory, credit, tax and accounting consequences prior to making any investment decision.
Copyright © 2022 CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.