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Wireline in a Mobile World

Ken Budd

Network Manager

Park Region Telephone

Wireline in a mobile world…

1. Information / Content

2. Music / Media

3. Books / Print 4. Films / TV 5. Transportation - Mobility

MARKET DISRUPTION

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More change is coming…

“There will be more change in the next 20 years than there has been in the last 300 years!”

- Gerd Leonhard (2015)

How is wireline affected?

Landline vs Wireless

Source: Money Watch, 2017

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Changes in viewing habits.

0

10

20

30

40

50

60

70

80

90

Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17

Wee

kly

min

utes

18-24 25-34 35-49 50-64 65+

Weekly time spent by U.S. users watching video content on smartphones as of 1st quarter 2017, by age group (in minutes)

U.S. weekly time spent on smartphone video 2014-2017, by age

Further information regarding this statistic can be found on page 102.

Note: United States; 2nd quarter 2014 to 1st quarter 2017; 18 to 64 years

Source: Nielsen ID 323922

Changes in viewing habits

“OTT video services will overtake traditional broadcast TV within the next five years.”

- Miller, 2017

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Virtual Reality & Augmented Reality

•  Virtual Reality

- 50Mbps for a 360 degree 720p experience

- 500 Mbps for a 4k experience

Source: (Arris, 2016) and (Fridstrom, 2017)

•  Facebook a Pyramid Geometry

- Reduces VR and 360 video file sizes by up to 80%

Further information regarding this statistic can be found on page 51.

Forecast augmented (AR) and virtual reality (VR) market size worldwide from 2016 to 2021 (in billion U.S. dollars)

Projected size of the augmented and virtual reality market 2016-2021

Note: Worldwide; August 2017

Source: IDC ID 591181

6.1 11.4

143.3

215

0

50

100

150

200

250

2016 2017* 2020* 2021*

Mar

ket s

ize

in b

illio

n U

.S. d

olla

rs

Further information regarding this statistic can be found on page 71.

Forecast virtual reality (VR) headset installed base worldwide from 2015 to 2020 (in millions), by platform

Projected installed base of virtual reality headsets worldwide 2015-2020, by platform

Note: Worldwide; 2015 to 2016

Source: IHS; Statista estimates ID 619662

0.5 2 4.5

0.5 3

7

12.5

19

1.5

4.5

8

11

14.5

4

16

23.5

29.5

36.5

43.5

0

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2015 2016 2017 2018 2019 2020

Uni

ts in

use

in m

illio

ns

Standalone PC Console Mobile

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Change is here..

Mobility 1.

3.

2.

User Experience

Experience

- Our thinking needs to transform from the

Products and Services

EXPERIENCE

We are spending less money on buying things and more money to doing things!

Experience Economy

“If a company is not mobile friendly, nearly half of millennials will do business elsewhere.” (Mitek Systems, 2015)

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Experience

•  System Automation and Integration

- Bandwidth-on-demand services

- Mobile applications and integration

- Automatically provision critical network functions

- Less time swivel chairing from one application to another

- Remove hardware and software compatibility issues. “White box”

More change…

Mobility 1. User Experience

3.

2. Rapid adoption

Rapid Adoption

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Rapid Adoption

•  Analytics (Big Data)

•  Cloud Computing

- Content Filtering

- Security Services

o  Firewall

o  Video Monitoring

•  SD-WAN

- Managed Wi-Fi

More change…

Mobility 1. User Experience

3. Network Scalability

2. Rapid adoption

Scalability

•  Network Scalability

“A system is said to be scalable if it can handle the addition of users and resources without suffering a noticeable loss of performance or increase in administrative complexity”

- Clifford Neuman

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Scalability

•  Number of Users or bandwidth

•  Impact to network and system resources

•  Transparent to end users

•  Knowing when to use which scaling method

Scalability

Wrap Up

•  5G

•  Wireless Network Offload

“64% of global mobile traffic will be offloaded to Wi-Fi networks.” - Wireless Broadband Alliance

“5G's formidable network performance goals are heavily predicated on the availability of fiber, and lots of it, to cell sites.”

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sources

•  ARRIS (2016, June 17). ARRIS Gives Us a Hint of the Bandwidth Requirements for VR. Retrieved Feb 27, 2018, from The Online Reporter: http://www.onlinereporter.com/2016/06/17/arris-gives-us-hint-bandwidth-requirements-vr/

•  Brown, E. D. (2014, 02 21). Incorporating Mobility into your Technology Strategy. Retrieved 02 21, 2018, from ericbrown.com: http://ericbrown.com/incorporating-mobility-technology-strategy.htm

•  Fridstrom, Mattias. (2017, May 6) The bandwidth problem: 5 issues the VR industry must resolve. Retrieved Feb 27, 2018, from VB: https://venturebeat.com/2017/05/06/the-bandwidth-problem-5-issues-the-vr-industry-must-resolve/

•  Lavallee, B. (2017). 5G wireless needs fiber, and lots of it. Retrieved March 1, 2018, from www.ciena.com: http://www.ciena.com/insights/articles/5G-wireless-needs-fiber-and-lots-of-it_prx.html

•  Leonhard, G. (2015, 07 13). Skills For Tomorrow. Retrieved 02 22, 2018, from youtube.com: https://www.youtube.com/watch?v=H6kitc85PPg

•  Miller, B. (2017, April 20). Over-the-top video to overtake TV viewership within 5 years, says Level 3 study. Retrieved Feb 26, 2018, from bizjournals.com: https://www.bizjournals.com/denver/news/2017/04/20/ott-video-to-overtake-tv-viewershipwithin-five.html

•  Mitek Systems, I. (2015). 83% of Millennials Expect Mobile Capture in All Mobile Transactions. Retrieved February 12, 2018, from miteksystems.com: https://www.miteksystems.com/blog/83-millennials-expect-mobile-capture-all-mobile-transactions

•  Money Watch. (2017, May 4). Milestone for cellphones vs. Landline phones. Retrieved Feb 26, 2018, from Money Watch: https://www.cbsnews.com/news/milestone-for-cellphones-vs-landline-phones/

•  Usborne, S. (2017, May 13). Just do it: the experience economy and how we turned our backs on 'stuff'. Retrieved Feb 25, 2018, from the guardian:

https://www.theguardian.com/business/2017/may/13/just-do-it-the-experience-economy-and-how-we-turned-our-backs-on-stuff

•  Wireless Broadband Alliance. (2017, April 4). Telco Operators should be much more strategic when it comes to incorporating WiFi into their product offering. Retrieved March 1, 2018, from www.wballiance.com: https://www.wballiance.com/more-than-60-of-global-mobile-data-traffic-will-be-offloaded-onto-wifi-networks-this-year/