Digitization driven by AI, IoT and 5GPatrick Waldemar, VP, Head of Technology in Telenor ResearchStandard Norge: 23.05.2017

Digitization

AI - Artificial Intelligence

5G - The fifth Generation Network

IoT - The Internet of Things

5 main categories define digital

Source: McKinsey & Company. Presentation at DigitalNorway Workshop November 2016

Digitalization impacting Norwegian businesses

eCommerce Norway 2015 (30bn goods, 37bn services, 3bn other)

13%Airbnb market share for hotel

rooms in Norway

3,162%

kolonial.no revenue growth

2014-2016

Users of Vipps

mobile payment in

Norway

150 million

or 50

million?Wilh. Wilhelmsen global future

car sales (90 million today)

NOK 70 billion

Digitization potential of NCS(Advanced Analytics 13bn, Process Digitization 13bn,

Robotics 4bn, Connectivity 5bn)

NOK 35 billion

1.85 million

Source: DigitalNorway investor presentation. McKinsey & Company

5

Ex machina

AI – Algorithms that allow a

computer to do stuff that in our

opinion requires intelligence

and reasoning.

What is AI?

Cyril Rokkones, Telenor Research

The summer of AI is here...

Powered by the Machine Learning subfield...

7

~3000 NOK

2800 Processors

Source: AMD

What drives the AI development?

1) Technology development: Moores Law & drop in computing cost

What drives the AI development?

2) Algorithms: Machine Learning & training of neural networks

9

What drives the AI development?

3) Availability of data: Mobile phone usage and Internet of Things

What is IoT?

24 billion IoT devices connected to the internet by 2020,

Nearly $6 trillion will be spent on IoT solutions in 2016-2020.

Businesses will be the top adopter of IoT solutions to

1) lower operating costs;

2) increase productivity; and

3) expand to new markets or develop new product offerings.

Governments will be the second-largest adopters of IoT ecosystems.

Consumers will lag behind businesses and governments in IoT adoption.

Source: Business Insider, July 2016

Expectations:

12

Source: ublox

Importance of technology platforms and ecosystems

Source: Telecoms Intelligence, IoT Outlook 2016

5G: main connectivity technology enabling IoT

What is 5G?

2G 1990 Mobile Voice & SMS

3G 2000 Mobile Internet

4G 2010 Mobile broadband

5G 2020 Every “Vertical” Connected

*25 billion connected devices by 2020 ~Ericsson

e-Mobile broadband

?

5G is empowering verticals

14

5G network for

many use cases

15

Source: ITU-R: IMT Vision –

Framework and overall

objectives of the future

development of IMT for 2020

and beyond. Recommendation

ITU-R M.2083-0 (09/2015)

Massive Machine Type

CommunicationsUltra-reliable and Low Latency

Communications

Enhanced Mobile Broadband

16

Programmable networks:

“network slices” sharing physical network

17 3 May 2016 5G is coming 5G – A driver for industrial and societal changes

Source: 5G Infrastructure Association: 5G Empowering vertical industries, White Paper, 2016

Artificial Intelligence / Machine Learning is the key driver of digitization

The Internet of Things will make the physical world visible to AI

The fifth Generation Network will be the most important enabler for IoT

Digitization driven by AI, IoT and 5G:

Patrick Waldemar, Telenor Research

Email: Patrick.Waldemar@telenor.com

Additional slides

20

Source: 5G Infrastructure Association: Vision White

Paper, February 2015

When will 5G become available

21

2015 20252020

Summer Olympics,

Japan

FIFA World

Cup

Winter Olympics,

Korea

FIFA World Cup,

Qatar

• Standardisation and regulation

• Business strategy decisions

• Label 5G both technology and commercial

When will 5G become available

Source: 5G Infrastructure Association, 5G Pan-European Trials Roadmap Strategy, 28. February 2017