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Networked Society 2015: Spectrum and beyond

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VoicenData Bureau
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Network Analytics

By Nishant Batra

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The value of vital mobile spectrum is becoming increasingly paramount. Earlier this year, US operators held no punches and spent a combined $44.9 billion in one of the most competitive airwaves auctions we’ve seen. This example in particular highlights an unrelenting demand for mobile data networks to accommodate rich media communication including video, instant messaging and all things social.

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The demand for mobile spectrum is beginning to reach new heights. In 2008, a similar spectrum auction raised $19 billion, and this year, the FCC (Federal Communication Commission) has managed to raise more than double. Spectrum is valued so highly because the things we do with our connected devices is now so much more diverse than they used to be.

Voice has begun to evolve through the implementation of VoIP and VoLTE and this is contributing to the three monthly exabytes of data that consumed in 2014. And, according to Ericsson’s latest Mobility Report, the volume is forecast to grow to 30 exabytes per month in 2020.

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Put in context, we at Ericsson see these new behaviors as driving an emerging ecosystem for technology that many of us take for granted. We now expect things to happen at light speed through our connected devices. From the $13 million generated in crowd funding to the 133 million hours of YouTube watched, or the 2.7 billion ‘likes’ on Facebook each day, these examples are defining the way we use data in our everyday lives.

And according to our predictions, by 2020, advanced mobile technology will be commonplace around the globe, 90% of the world’s population will be covered by mobile broadband networks and 70% will be using smartphones.

The evolution of LTE therefore, continues to gain momentum worldwide. R&D teams are already looking at how to develop and define the next-generation of mobile standards with 5G, which will continue unabated throughout 2015.

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Networked Society

The exponential rise in everyday communication represents more than the sum of its parts. It is delivering a fundamental change in the way things get done.

The dawn of the Internet of Things (IoT) provides opportunities to connect devices, and the increased use of network functionalities will mean telcos can redefine their customer base, making essential consumer data an asset.

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In fact, when you look at the evolution of Information Communications Technology (ICT) today, you’ll see that social networks, not smartphones, represent the real departure from the telephone. After all, whether you’re using a fixed-line, or mobile device, it’s still a phone.

The evolution of ICT is also driving greater empowerment. End-users including consumers and employees with access to a high-speed data connection are leading long-standing institutions like transportation, banking and healthcare to completely rethink the notion of value they provide.

Operator Opportunities



Operators have had to move with the times, and some have done it better than others. Many saw the data opportunity early, and invested heavily in spectrum and network upgrades. Others have opted to consolidate across markets to increase their global presence and service offering.

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At Ericsson, we see ICT continuing to drive a higher degree of efficiency for industries to work in a smarter way. Operators are equally open to this opportunity, and placing priority on convenience, standardization and better operational practices will be key to better delivery of general purpose technologies like mobility, broadband and cloud.

Across industries like retail and transport, the adoption of these capabilities is leading to a sea of change in the way products and services are delivered. According to research firm Analysys Mason, operators will look to share and consolidate infrastructure this year to tap into this opportunity, and further improve operational efficiency and profitability for consumers and enterprises alike.

New Practices

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We are increasingly hearing the mantra disrupt or disappear and it has never been more relevant. Over the past five years, operators have been forced to adapt their business models to accommodate the rise in demand for data, while maintaining their legacy services.

This requires a number of core shifts or new practices that operators and their business customers need to adopt to sustain this change.

The digitalization of business resources is one of the first steps required to ensure that underlying networks and other telecoms services are increasingly adaptable to a changing environment.

In fact, network focused management (something that is second nature to operators) will come to the forefront as critical for the delivery of scalable digital platforms and services, empowering a better understanding of prioritizing those resources that are owned, managed and shared.

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From an infrastructure standpoint, operators across Europe are increasingly looking at the opportunities of a single market, and they are opening their networks to accommodate spectrum sharing and joint deployments.

Encouraging co-creation now becomes essential, and collaboration via online communities’ means businesses and governments can improve relationships with customers and citizens using digital products and services. As we move towards this hyper connected world, it is important for operators to understand that technology is no longer passive. It is constantly evolving, and making sense of real time data analytics is an essential business function.

Spectrum Efficiency

A systemic change across industries will be necessary if operators are to realize the advantages of the networked society and the change in mobile standards continues to reflect that.

Where LTE was geared towards addressing the pitfalls of 3G in terms of speed and performance, the next stage of mobile is set to have a telling influence on people, business and society.

Experts will be quick to tell you that 5G is not just the next iteration of 3G and 4G, but it’s something much more. Geared for a 2020 launch, standards are yet to be defined, but network densification and capacity will be key. As operators begin to invest in this undefined 5G world, they are not only investing in a mobile network. 5G will be one of the many stepping stones towards a number of elements that we associate with the Networked Society vision.

Hence, as the term implies, a ‘Networked Society’ is about more than spectrum efficiency. There is an opportunity for operators to play a vital role in a society that will fundamentally change the way we innovate, collaborate, produce, govern and achieve sustainability.

Nishant-Batra-head-of-Engagement-Practices-at-Ericsson-India

The author is Head of Engagement Practices, Ericsson.

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