5G Opportunities
for MVNOs
Kushal Shah
Business development director
Version one
1     © British Telecommunications plc 2019   In confidence
Agenda
• What 5G brings.
• Opportunity for MVNOs.
• Hype vs reality.
• The foundation for success.
2   © British Telecommunications plc 2019
      The BT story
          We’ve been around since 1846.
          We’re a global company, operating in around 180 countries.
          We own the country’s largest and best* mobile operator – EE.
          Our coverage reaches more than 99 per cent of the UK population.
          BT Wholesale is the home for MVNO on the EE Network.
      * Winner of Rootmetrics Overall Rootscore for 5 years in a row
      3         © British Telecommunications plc 2019
Information Classification: General
      BT Wholesale – who we are and what we do
                                                        • Europe's largest wholesale telecoms provider.
                                                        • £1.5 billion annual wholesale revenues.
                                                        • 1,700 dedicated employees.
                                                        • Voice, Data, Hosted Comms, Machine to Machine,
                                                          Managed Services & Mobile.
                                                        • Partnership-driven MVNO platform on EE. With a
                                                          win/win commercial, technical and commercial
                                                          framework.
                                                        • Your success is our success!
      4         © British Telecommunications plc 2019
Information Classification: General
      Over four million MVNOs users across 30 brands
      5         © British Telecommunications plc 2019
Information Classification: General
5G
6   © British Telecommunications plc 2019
      EE Network rollout plans for 5G, targeting 16 hotspots of highest demand
       We plan to switch on 5G services in
       10 UK cities next week (30th May)
      Starting with:
       London                    Cardiff                Birmingham
       Manchester                Edinburgh              Belfast
       and by end 2019, extending to:
       Glasgow             Newcastle             Liverpool        Leeds   Hull
       Sheffield           Nottingham               Leicester      Coventry      Bristol
      7         © British Telecommunications plc 2019
Information Classification: General
      5G promises mobile network improvements
                                               10x               100x                     10x
                                          Decrease in latency     Traffic capacity   Experienced throughput
                                                  3x               10x                  100x
                                         Spectrum efficiency    Connection density     Network efficiency
      Source: BT
      8         © British Telecommunications plc 2019
Information Classification: General
      5G promises a range of use cases
                                  2019 - 20                   2020 - 22                  2022 and beyond
                               Enhanced mobile
                                                             Mission-critical              Massive ‘Internet
                                 broadband
                                                                services                     of Things’
                    UHD Video Virtual/Assisted            Self/assisted driving                  IoT
                    Reality Interactive gaming          Traffic safety and control     Smart Home/Building/
                          Tactile Internet                Industry automation              Factory/Energy
                                                             Remote surgery          Smart Agriculture, Logistics,
                                                                                           Asset Tracking
      9         © British Telecommunications plc 2019
Information Classification: General
      5G offers the ability to differentiate at the network level
                                                                                             Transportation
                                                                                            Mobile operators
                                                                                                 Utility
                                                                   Network-as-a-service
                                                                         (NaaS)                Community
                                                                                                Webscale
                                                                                            Digital enterprise
                    Differentiation                     Flexible           Autonomy       Scalable
      10        © British Telecommunications plc 2019
Information Classification: General
      Network capability drivers for differentiation
           Example network slice by capability                                        Latency
                                                                 Throughput                             Data security
                         Network slice for
                            telematics
                                                        Guaranteed QoS                                             Energy efficiency
                             Network slice for
                                 AR/VR
                         Network slice for CCTV
                                                                   Reliability                          Mobility
                             surveillance
                                                                                 Massive connectivity
      Source: Ericsson
      11        © British Telecommunications plc 2019
Information Classification: General
      Industrial MVNO opportunities
                                M Health                Logistics   Connected Car
      12        © British Telecommunications plc 2019
Information Classification: General
      5G consumer propositions
                                                                      Real-time speed
                            Gamer MVNO                  Media MVNO
                                                                     sport betting pack
      13        © British Telecommunications plc 2019
Information Classification: General
Hype vs Reality
14   © British Telecommunications plc 2019
      The 5G vision will take some time to deliver
      5G technology will launch in 2019 but the capability will evolve massively from there.
                                  Initial devices &        4G EPC1        More                Increasing      Standalone   Full 5G       Network
         Industry                 capability               core network   smartphones         coverage        5G core      capability    slicing
         capability                                    2019                     2020                       2021                   2022      2022+
                                                        EE
                                                      Currently
                                                      91%                               5G rollout
                                                 4G coverage
         • Early 5G service will enhance mobile broadband and address high congestion areas.
         • Coverage and handsets will be limited with initial mass market handsets not available until 2020.
         • 4G nationwide network coverage and speeds will remain the important customer service differentiator.
      15        © British Telecommunications plc 2019
Information Classification: General
      5G will create limited fixed substitution effects
                                                    Today                                                        2025
                                Today usage between                                                  Fixed household f/c = 1TB/month
                        fixed and mobile is a multiple of 50X                                            Mobile f/c = 20GB/month
        Network usage in 2018: GB/month                                                     Cloud VR Gaming               SVOD / VR
           250
                                                                   221
           200
           150
           100
            50
                                      5
             0
                           Mobile per smartphone            Fixed per household
      Source: Enders                                                              Source: Analysys Mason
      16         © British Telecommunications plc 2019
Information Classification: General
      Capacity may be an issue sooner than we think
                                                                                                                Capacity utilisation
                      Fixed and mobile capability gap is huge
        Network bandwidth capabilities: Mbps
           1200
                                                                   1,000   1,000
           1000
            800
            600
            400                       300
            200
                                                            70
                         30                             8                                               Average operator
               0
                         4G            5G         ADSL2+    FTTC   FTTP    Cable   Source: Enders analysis based on company reports and Ofcom
      17        © British Telecommunications plc 2019
Information Classification: General
      Long-term vision is not just about 5G - Converged Network
                                                                      Wholesale – MVNO customer X – over converged access
                                                                Business/corporate – mobile-only intra/extranet broadband access
                                                                         Consumer – converged multi-connected broadband
                                                                               Consumer – fixed-only broadband access                      Multiple
                                                                                                                                           virtual networks
                                                        (Private) Edge Cloud                  Edge Cloud                                   Common physical
                                                           Compute node                      Compute node                                  infrastructure
                                                                                                                                           Access via:
                                                                                                                               Core node   Fixed / Mobile / Wi-Fi
      18        © British Telecommunications plc 2019
Information Classification: General
      Single converged core delivering a seamless user experience
                                      Network optimisation                 Seamless user experience
           • Single converged core to manage and operate.    • Access to all services regardless of
                                                               access network.
           • Best use of networks.
                                                             • Single set of identities and credentials.
           • Improved reliability.
                                                             • Consistent policies and services.
           • Simplified OSS.                                 • Best available network for bandwidth
                                                               and latency.
           • New service and revenue opportunities.
                                                             • Seamless mobility.
      19        © British Telecommunications plc 2019
Information Classification: General
      20        © British Telecommunications plc 2019
Information Classification: General
Foundations for success
21   © British Telecommunications plc 2019
      Network leadership in 4G will be the foundation for success in 5G
                            Overall Best Network for last 5 Years
                                                            UK Rootscore performance 2H 2018
           95
           94
           93
           92
           91
           90
           89
           88
           87
                                      EE - 1st          Vodafone - 2nd            Three - 3rd   O2 - 4th
      22        © British Telecommunications plc 2019
Information Classification: General
      No 1 for coverage and speed
           4G in more places than any                   Number one for speed
           other UK network                             achieved
                        91%                                        “Speeds that are in some cases faster than
                                                                       BT’s fibre-based infinity service”
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                                                                    33.03                           13.81
              EE coverage November 2018                                      20.7   18.92   18.48
                                                                                                            10.11   9.8   9.4
      23        © British Telecommunications plc 2019
Information Classification: General
      EE continues to dominate the awards table - Opensignal
                                                                                                                             Download speed: Overall
                                                  Awards
                                        Download          Download          Download   Latency:   Latency:   Availability:
                                         speed:            speed:            speed:      4G         3G           4G
                                           4G                3G              overall
                                                                                                                             Download speed: 4G
           EE
                                                                                                                             Availability: 4G
           O2
           Vodafone
      Source: OpenSignal State of the Mobile Networks Report – April 2018
      24        © British Telecommunications plc 2019
Information Classification: General
      Investing to continue our network leadership in both fixed and mobile
                                                        £3.7bn annual investment
                Increased investment in 4G                    3G refarm for 5G      All IP UK Network &
                and expanding into rural UK                                        Single converged core
      25        © British Telecommunications plc 2019
Information Classification: General
                                                             Thank you !
                                                                Kushal Shah,
                                                        business development director,
                                                                BT Wholesale
      26        © British Telecommunications plc 2019
Information Classification: General