爱立信：2023房地产市场中的5G连接白皮书（英文版）（12页）.pdf

1、5G connectivity in the real estate marketDecember 20222Ericsson|5G Connectivity in the real estate marketContentAcross the globe,enterprise digitization has picked up rapidly in the last few years.What was already a strong trend was accelerated by the global COVID-19 pandemic,and preventive measurem

2、ents to try and limit the number of infections increased demand for high-quality connectivity as employees started to work from home,but still needed access to secure communication within their workplace.In response,enterprises across all different verticals(including for example healthcare faciliti

3、es and manufacturing establishments)continue to demand higher quality connectivity be it either in terms reliability and availability,latency,or enhanced broadband capabilities.Real estate managers and building owners see need for higher capacity to satisfy ever growing demand for bandwidth as well

4、as high availability of reliable connectivity to support other business critical applications.To understand key developments within the real estate market,telco infrastructure vendor Ericsson and tech consultancy ABI Research have surveyed a total of 195 respondents(real estate owners,building manag

5、ers and commercial executives within Communication Service Providers(CSP)across North America,Europe,the Middle East,and Northeast Asia.02 Introduction:Wireless connectivity in the real estate market 04 The role of 5G connectivity for in-building wireless 06 Lets talk about money:Making the business

6、 case for 5G for in-building wireless 09 A blueprint to a successful 5G deployment for in-building wireless 11 The road ahead Key considerations for building owners&managers to deploy 5G within their buildingsIntroduction:wireless connectivity in the real estate market 34525455Number of Respondents

7、byType of Company Neutral HostsProperty OwnerProperty Management CompanyCommunication Service Providers1822275870Number of Respondents byJob Function OwnerC-LevelVPDirectorManagerFigure 1:Background Demographics of the Survey3Ericsson|5G Connectivity in the real estate market In response to increase

8、d connectivity demands discussed earlier on,the real estate market is actively looking towards cellular technologies for their in-building connectivity,as figure 2 shows.While interest in using 5G for in-building connectivity in the real estate market is there,more education is needed to ensure real

9、 estate owners,managers and commercial building tenants have a clear understanding of 5G capabilities and form realistic expectations.At the same time,potential suppliers of cellular connectivity need to understand key pain points of the sector,as well as budgetary constraints and financial abilitie

10、s to design appealing offerings for the commercial real estate market.This paper will therefore focus on the 5G opportunity in the real estate market.It starts by looking at the supply side,i.e.,what is available today and how this can address key pain points of current in-building wireless connecti

11、vity,followed by the underlying business case and offering a blueprint for successful 5G deployments for in-building wireless.1%20%31%48%Dont knowWi-FiSD-WANLatest generation of private 4G/LTE and 5G networkFigure 2:Q:Which connectivity technology will meet your requirements in the best way?4Ericsso

12、n|5G Connectivity in the real estate marketThe role of 5G connectivity for in-building wireless 01What is available today?Why should we care?To accelerate the rollout of 5G connectivity,the 3rd Generation Partnership Project(3GPP)decided to introduce each of these features one after the other.Conseq

13、uentially,5G connectivity today is perfectly capable of offering particularly high data rates as part of the enhanced mobile broadband(eMBB)capabilities 20 Gb/s in the downlink and 10 Gb/s in the uplink.These are particularly important to provide high-capacity connectivity to sites with multiple off

14、ices and tenants,which all use connectivity for data intensive applications,such as video streaming,conference calling or remote presentations.Remaining features like the provision of particularly low latencies for highly time critical applications or a high density of connected devices(up to 1 mill

15、ion devices per square kilometer)will be commercially available at a later stage currently expected towards the end of 2023.Enterprises across the globe are rapidly advancing their digitization initiatives.As a result,not only does the demand for connectivity increase,but the quality of connectivity

16、 will become an increasingly important factor that will influence tenants decision when selecting a certain building or site.As figure 3 highlights,the most important pain point with in-building wireless connectivity is that legacy Wi-Fi network infrastructure cannot cope with the increased demand.E

17、xtending existing public connectivity proves to be a challenge,which 5G can seamlessly address with its enhanced mobile broadband(eMBB)capabilities.In addition,maintaining multiple indoor connectivity networks for different use cases simultaneously can become very complex and therefore highly costly

18、 and resource intensive.By providing the opportunity to slice a network and dedicate different slices to individual use cases,5G can unite all heterogenous use-cases under one connectivity umbrella and therefore deliver important savings in terms of Total Cost of Ownership(TCO)both from a CAPEX as w

19、ell as OPEX perspective.To understand why 5G matters for real estate in-building connectivity pain points,it is important to look at what 5G will ultimately offer enterprises,building owners and real estate managers.Figure 3 gives an overview of the three main characteristics of 5G connectivity for

20、enterprise verticals.Enhanced Mobile Broadband(eMBB)Downlink/Uplink of up to 10 GbpsMassive Machine Type Communications(mMTC)1 Million Connections per km2Ultra-Reliable Low Latency Communications(URLLC)Low Latency,1 ms5G FeaturesFigure 3:Overview of 5G capabilities 5Ericsson|5G Connectivity in the r

21、eal estate market3%32%56%62%Other(Please specify)Dropped calls and sudden outage of connectivityExtension of public connectivity is not feasible/does not yield satisfactory resultsCurrent in-building wireless networks cannot keepup with the rate of enterprise digitization(e.g.,At the same time there

22、 is widespread agreement across the industry that Wi-Fi connectivity does not satisfy the stringent demands for state-of-the-art connectivity.When asked about the reasons for considering 5G for in-building connectivity use cases,65%of respondents highlight a cost advantage of cellular over other con

23、nectivity technologies,while 40%mention that Wi-Fi in its current form is not fit to keep up with the rising requirements for in-building connectivity,as discussed in the introduction.As even Wi-Fi will operate in unlicensed bands,5G will remain the best fit for particularly critical use cases requi

24、ring highly reliable,low-latency connectivity and/or wide-area deployments.In-depth discussions with real estate companies underline this and highlight that network outages have become an increasingly important problem to address.4%29%40%53%65%Other(Please specify)Landscape of cellular providers is

25、wider than forother wireless technologies.Wi-Fi performance is not enough to address keypain points satisfactorily.Cellular connectivity is easier to implement.Cellular connectivity is less expensive to deploy thanother wireless technologies.Figure 4:Q:What are the biggest pain points that you curre

26、ntly face with regards to connectivity?Figure 5:Q:What are the main reasons for you to consider cellular for in-building wireless?We face outages of Wi-Fi all the time.At this rate it becomes increasingly impossible for us to attend to all these outages in a timely matter.(Tier-1 Commercial Real Est

27、ate Service Provider,United Kingdom)6Ericsson|5G Connectivity in the real estate marketLets talk about money:making the business case for 5G for in-building wireless 02Above all,these technology-related decisions beg the question:where does the money come from for 5G deployments?Certainly,as the dev

28、ice ecosystem is maturing and competition is increasing,costs of network infrastructure and devices will inevitably reduce.But building operators will need to justify spending and investment,especially in the current macroeconomic climate which is sending production costs for many enterprises and th

29、e cost of living for consumers soaring spending will remain scarce for the time being and any investment in telecommunications infrastructure will need to be carefully assessed.In bringing 5G connectivity to the real estate market,CSPs and neutral hosts predominantly hear about high investment barri

30、ers as well as an immature device ecosystem,which ultimately leads to higher deployment costs.Making the business case for 5G connectivity in the real estate market is therefore arguably more important than ever before.24%26%37%44%55%Lack of market educationReluctance to work with new partnersUnclea

31、r value proposition over othertechnologies(i.e.,Wi-Fi)Immature device ecosystemHigh investment BarriersSomewhat related to perceived high investment barriers is the missing clarity of 5Gs value proposition over legacy connectivity technologies most importantly Wi-Fi.Here,more market education is nec

32、essary about how cellular connectivity requires significantly less infrastructure deployments to cover a similarly large area,the higher degree of deterministic networking and more predictable latencies by providing robust handovers of signals between access points or base stations.While these facto

33、rs lead to more economical deployments and therefore lower TCO,in-depth discussions with tenants of commercial buildings have highlighted that they would certainly be prepared to pay a somewhat higher rent in return for better in-building connectivity.At the heart of successful 5G service monetizati

34、on lies careful management of customer expectations.After all,commercial entities must justify their investments(in terms of return on investment)and guarantee certain services to their tenants.As a result,any supplier of 5G connectivity be it a traditional CSP or a neutral host-will have to design

35、service level agreements(SLAs)that align with requirements from the real estate world.The design of SLAs for building owners and property managers should follow a pyramid shape very similar to the so-called Hierarchy of Needs by American psychologist Abraham Maslow.An adaptation of this concept coul

36、d look like the depiction in figure 6:coverage and capacity of connectivity need to be provided continuously as a base for all different use cases.The service level of other capabilities like enhanced bandwidth,the opportunity to connect an extremely large number of devices,or the provision of parti

37、cularly low latencies shall be agreed so that these are provided for different use cases when required.Furthermore,network slicing could be provided as an additional high-tech service level for those customers who has a need to change the configurations/characteristics in their traffic profile on a

38、more regular basis.Figure 6:Q:What are the main challenges you encounter in bringing 5G connectivity to building owners/managers?7Ericsson|5G Connectivity in the real estate marketLowLatencyNumber ofconnected devicesService level agreements(SLA)Coverage&CapacityEnhancedbandwidthThese KPIs should be

39、considered as binary,rather than continuous variablesFigure 7:Possible SLA design for 5G Real Estate Offerings We do not have the necessary financial capabilities for a large upfront investment into communication infrastructure.Therefore,we prefer to pay a monthly fee for connectivity services that

40、can either be raised against us or our tenants directly.(Tier-1 Commercial Real Estate Service Provider,United Kingdom)8Ericsson|5G Connectivity in the real estate market9Ericsson|5G Connectivity in the real estate market A blueprint to a successful 5G deployment for in-building wireless03As commerc

41、ial real estate tenants often deal with highly sensitive data,integrity and security of the network and its data are at the forefront of every building owner/manager when deciding about a new connectivity technology.A fully isolated private network deployment is particularly cost-intensive,as every

42、network requires its own dedicated telco infrastructure.Furthermore,it would require real estate owners and managers to build up their own team dedicated to providing the network itself as well as any additional service.TCO,building managers and property owners should therefore explore combining ass

43、ets from the public telco infrastructure(from the macro network)with dedicated infrastructure elements,that can be deployed on premise and guarantee that user data will not under any circumstances leave the perimeters of the office/commercial site.With the rising importance of the cloud as a place f

44、or data storage,analysis and processing,a hybrid cloud solution combining public and private cloud elements becomes an increasingly popular choice for commercial real estate companies.In these cases,the connectivity would be provided by a CSP or neutral host.Careful design of SLAs could specify exac

45、tly which incidents could be addressed on-site and which would be referred to the CSP,neutral host,or in the case of a hybrid cloud solution the cloud service provider.The real estate markets digitization is only taking off now,therefore use cases discussions and the exact value proposition of 5G st

46、ill needs to adjust to real estate owners and managers pain points.In addition,most cellular devices today run on 4G LTE,the upgrade to a 5G network will therefore also translate into an upgrade of devices,which will need to be carefully managed.To successfully embark on this journey now,real estate

47、 companies as well as enterprises from different verticals need a blueprint of successful 5G deployments help guide building managers and property owners on how they could deploy 5G technology for their in-building connectivity.Different deployment models for different use cases As figure 8 shows,in

48、 the commercial real estate market which to a large extent consists of office buildings and other so-called carpeted space 5G is predominantly interesting for its enhanced bandwidth capabilities to provide commercial customers and tenants with increased levels of connectivity.49%55%67%Visitor servic

49、es requiring particularly high broadband(eMBB)Smart building services(IoT and sensors and control of power,cooling,and security aspects)Private in-building services(asset tracking,positioning,smart industry etc.)Figure 8:Q:What are the key use cases that you will be realizing with cellular connectiv

50、ity?10Ericsson|5G Connectivity in the real estate market9%16%20%21%32%Private network(fully owned but managed by a Neutral Host)Private network(fully owned but managed by a mobile operator)Network slicePrivate network(fully owned and operated by your company)Private network(fully owned and operated

51、by your company,but in the cloud)Figure 9:Q:How do you envision deploying the network?Industrial enterprises(the so-called uncarpeted verticals like manufacturing,mining,oil and gas,logistics,or transportation for example)will need to factor in the higher criticality of the use cases,they look to ad

52、dress.They will consequentially be more inclined to look at a fully on-premise private network deployment.Commercial real estate owners and building managers of carpeted office spaces on the other hand,would be open to utilize public macro network infrastructure,explaining why renting a dedicated ne

53、twork slice from a public network is the second most popular deployment model.While relying on the public cellular network alone would be the most cost-efficient possibility,enterprises will require some dedicated infrastructure that can store and process their user data and ensure full data integri

54、ty.Finding the ideal partner for 5G connectivty As important as defining the right deployment model is finding the right partner for cellular network provision.Not surprisingly,there is a considerable incumbent advantage,as most commercial real estate managers and property owners prefer to introduce

55、 new connectivity technology through existing supplier relationships.32%54%69%74%Existing Building/Maintenance service providerTrusted IT Systems and Services IntegratorNeutral HostExisting telco connectivity providerFigure 8:Q:What are the key use cases that you will be realizing with cellular conn

56、ectivity?Extensive discussions with property owners,building managers and tenants highlight a certain openness to working with new service providers in the telecommunications industry,particularly so-called neutral hosts.Defined as a company that invests in telecommunications infrastructure such as

57、cell towers,real estate and fiber-optic networks,and leases this infrastructure to multiple communication service providers(CSPs)on a shared-tenant basis,these neutral hosts offer not only connectivity(in the form of access to spectrum)but also network management and operation capabilities as a mana

58、ged service-with a recurring fee instead of a large upfront investment.Neutral hosts tend concentrate in countries where the national regulator has made mobile network spectrum available to enterprises,either through shared spectrum(as is the case in the United States with the Citizen Broadcast Radi

59、o Service,CBRS,or the United Kingdom with its Spectrum Sharing initiative)or setting aside licensed spectrum for direct to-enterprise allocation(as is the case in France,Germany and a growing number of other European countries),as they do not need to partner for access to(licensed)spectrum.Globally

60、speaking,however,CSPs still hold most licensed spectrum assets.they will inevitably continue to play an important role for providing 5G connectivity to the real estate market.To be most successful in doing so,a look at the neutral host model can be useful to try and adjust the business model accordi

61、ngly.The managed service approach from neutral hosts allows us to avoid unnecessary cost as it allows us to pay for only those services that we use.We do not need to own all connectivity infrastructure ourselves,so being able to use the infrastructure provided by a neutral host is a considerable cos

62、t advantage for us.(Tier-1 Commercial Real Estate Service Provider,United Kingdom)11Ericsson|5G Connectivity in the real estate marketThe road ahead key considerations for building owners&managers to deploy 5G within their buildings04As this paper has shown,the deployment of 5G should be the result

63、of a carefully carved out digitization strategy,that should follow distinct steps of conceptualizing use cases and determining the investment value to decide on the most appropriate deployment model and which channel partners to engage with,as figure 11 describes.Digitization strategy considerations

64、The fundamental question that building owners and managers should ask themselves and their tenants is what use cases they would want to implement and how.This in turn requires a careful analysis of what use cases real estate companiesshould invest into in order to attract tenants.These tend to be pr

65、oviding enough connectivity for visitor services,and smart building services(IoT and sensors and control of power,cooling,and security aspects).Based on the use case and investment volume that is available to building owners and managers,theyshould then decide on a suitable deployment model that com

66、bines all these aspects.For non-public indoor networks,public infrastructure will be an important element to reduce TCO while delivering the desired high quality for use cases requiring both connectivity within the campus and to the outside world.In addition,sustainability and aesthetic design are b

67、ecoming more important aspects to consider.This increases the need for minimally invasive and shareable indoor solutions.As a final thought,building owners and property manager should decide on suitable partners for cellular connectivity.To be most efficient should combine previous considerations ar

68、ound use cases,investment volume and targeted deployment model for the best possible user experience and careful expectation management.Determining the financial capabilities at an early stage is important,as this will have a profound impact on feasible deployment models and optimal channel partners

69、:building managers or property owners with limited financial capabilities,for example,might be better off with a cloud-based deployment that in turn requires a partner with necessary cloud capabilitiesChannel partnerDeployment modelUse CasesInvestment volumeAs enterprise digitization increases even

70、further,the demand for smart and connected buildings that can handle the increased amount of data that is generated by more digitized enterprises and offices will rise.Deciding about the right deployment model will inevitably take some time,so property owners and building managers should start explo

71、ring these considerations now to have a solid digitization strategy in place sooner rather than later.To support real estate enterprises in their digitization journey,a strong network of ecosystem partnerships and alliances between the telco industry and implementers will be fundamentally important.

72、Not only will this provide real estate companies with the necessary expert partners for connectivity,but-more importantly-it will ensure that the telco industry gains an in-depth understanding of specific pain points and connectivity requirements.The formation of such alliances(similar to for exampl

73、e the 5G Alliance for Connected Industries and Automation,5G ACIA for industrial manufacturing)would be an important win-win situation for both telco connectivity suppliers and implementers.Consequentially,real estate companies should open up to these partnerships and foster exchange.Figure 10:Decis

74、ion-making process for real estate companies to deploy 5G for in-building connectivityThe content of this document is subject to revision without notice due to continued progress in methodology,design and manufacturing.Ericsson shall have no liability for any error or damage of any kind resulting fr

75、om the use of this Ericsson AB 2022Ericsson enables communications service providers to capture the full value of connectivity.The companys portfolio spans Networks,Digital Services,Managed Services,and Emerging Business and is designed to help our customers go digital,increase efficiency and find new revenue streams.Ericssons investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world.The Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York.