AccelerComm, the company supercharging 5G with Optimization and Latency Reduction IP, today published a report commissioned from Rethink Research, which shows the critical role that low latency communications will play in the success of 5G. With operators globally now investing heavily in 5G, the research revealed that over 80% believe they will need to address new enterprise use cases in order to make the 5G business case add up. For new B2B revenues, lower latency was considered by 69% of operators as very important to supporting those new revenue streams, with 52% having the same view for B2C use cases. The full report Is ultra-low latency critical to the 5G business case? is available for download from: https://www.accelercomm.com/whitepaper-is-ultra-low-latency-critical-to-the-5g-business-case
Based on surveys of 86 operators and over 100 enterprises, questioned about their deployment plans and business cases for 5G, and particularly their requirement for Ultra-Reliable Low-Latency Communications (URLLC), the research revealed:
82% of mobile operators said that enabling new B2B revenue streams was a key ROI factor for their 5G investments, with 69% stating URLLC was “very important” to delivering those B2B revenues and 52% for consumer 5G use cases
Consumer use cases are important to driving early 5G uptake, with revenues from services enhanced by URLLC forecast to grow 64% by 2016, compared to 41% for consumer 5G revenues as a whole. However, low latency enterprise services will generate a stronger ROI at 22% of the total addressable 5G market, compared to 17% for ultra low latency consumer services
Demand for low latency is therefore not confined to gaming and critical services. In the B2B segment, key verticals are driving demand for URLLC by 2025, with organisations in the transport (48%), manufacturing (42%), utilities and energy (42%) and healthcare (38%) sectors stating that sub-5ms latency will accelerate their adoption of 5G
The 5G business case, for operators which want to expand into new user bases, is increasingly weighted towards the applications in the sub-5ms class. With operators expecting a nationwide URLLC-capable network to incur 10% to 12% additional cost compared to a generic MBB-capable deployment, 76% of the operators surveyed, which plan to enable URLLC, said that network slicing would be key to the business model
“This research shows how critical the ability to support ultra-reliable low latency communications will be in order to underpin a host of entirely new applications for enterprises and consumers. By guaranteeing an extremely rapid response to data requests (below one millisecond for many applications), and enabling mission-critical reliability, 5G will open up many high value use cases for enterprises and operators,” said Caroline Gabriel of Rethink Research.
“The range of use cases that are possible using 5G are almost limitless, however the role in which low latency plays in making these a success has often been overlooked. As this research shows, particularly in the B2B segment, the operator and enterprise communities are increasingly aware that low latency is critical to the viability of many use cases ,” said Robert Barnes, VP Sales & Marketing of AccelerComm. “We are excited to be working with leading technology partners from across the industry to raise awareness and work to solve this issue.”
AccelerComm’s cutting-edge channel coding IP is used to correct transmission errors in mobile, small cell and satellite communications caused by noise, interference and poor signal strength. This technology is optimised for the specific needs of cellular and satellite communications to provide market leading performance and efficiency. The product suite includes a complete channel coding IP solution that delivers reduced latency and power consumption for the most critical component of a 5G system, whilst meeting all the throughput and error correction targets. The AccelerComm IP packages can be quickly integrated and flexibly delivered for use in custom silicon (ASIC), programmable hardware (FPGA) or as software solutions, covering all use cases within the current standards.