Telecommunications Industry Roundup

1 2020 TelecommunicationsIndustry RoundupHow the COVID-19 Pandemic Shifted Our Ways of Doing Business and Consumer Behavior Across the WorldContentsCOVID-19 s Impact on the Telecommunications IndustryDeveloping resilience in the face of a global crisisThe digital ecosystem is the way and Developing the 5G ExperienceConfiguring 5G network infrastructure for scalability and flexibilitySlicing the network to create new services and unlock new revenue streams for enterprisesUse case example: Nokia s 5G Factory of The Future The Rise of Mobile internet UsersDrivers for mobile connection growthSocial media, digital marketing, and streaming services see record boostsLockdowns escalated gaming consumptionMoving forward: Leveraging scalable platforms to simplifyservice integrationGlossary & ReferencesExecutive SummaryAbout Forest Interactive02051307160918212628303233343 72020 Telecommunications Industry RoundupIn the beginning of 2020, 5G network was commercially available through 40 mobile operators in 24 countries across the world.

2 Pioneering countries included South Korea, United States, Switzerland, China, and Kuwait. It was forecasted that by the end of 2020, 5G network connections would reach more than 165 million. However, that number was ultimately revised, reduced to approximately 150 million, due to the early stages of the global pandemic when many countries closed their borders and enforced movement restrictions, the 5G ecosystem was affected by supply chain and logistics disruptions, as well as reduced customer interactions. Mobile operators had to announce delays to planned 5G launches, postponing them into the latter half of 2020 or into 2021. At the end of Q1 and throughout Q2, revenues in the Telecommunications sector had Executive SummaryCoping with COVID-19declined as a result of the broader economy being impacted over the course of the pandemic. On the road to recovery, the sector saw potentially long-term upside gains. As of the second half of 2020, 5G networks became commercially available throughout 39 countries from 87 different mobile operators.

3 This was due to the rise of consumers and households contracting integrated bundle services, and the power of connectivity was recognized across all levels of society. Billions of people around the world were confined to their homes and became reliant on wireless and broadband access. Many aspects of daily routines were maintained through seamless work-from-home activities and social connections via social media. The way people worked and lived had to evolve and the data on network traffic demonstrated this shift, moving from city centers and dense urban areas into suburban areas. 2020 Telecommunications Industry Roundup2 The return to progress post-COVID-19 For 2020 and beyond, the future of the 5G connected world can no longer just be about the newest frontier technologies. The Industry needs to take into account the expansion and evolution of existing advanced connectivity technologies to support the broader economy during these uncertain times.

4 As operators continue to improve current services to keep up with the demand for better connectivity and stable internet connection, many have started to deploy core networks dedicated to IoT. This is to allow operators to ensure service quality and meet specific network requirements of enterprise customers, including localized coverage and time-sensitive networking. Compared to more exposed sectors such as retail and tourism, manufacturers are revisiting strategies and adjusting operational models. Shocks to demand and supply chains associated with the COVID-19 pandemic are likely to accelerate adoption of technologies like cloud, automation, and advanced technologies will help with efficiency gains, even if a curtailment in business investment underpins a temporary slowdown in 2020. For the long term, supply-chain visibility and adaptability, increased automation and resilience will be needed to survive in a highly competitive and uncertain environment.

5 5G and IoT will be the enablers of innovative use cases including massive wireless sensor networks, intelligent robots, and HD video transmission for remote maintenance and control. Digital transformation is the way forward to alleviate and overcome the pressures of the COVID-19 pandemic. Enterprises are deploying IoT to achieve cost savings and generate new revenue, while consumers aim to simplify living. Those that have already started the digital transformation journey are unlikely to stop. This year s difficulties have only heightened the importance of digital transformation, especially the development of applications and platforms built for scalability and service integrations. 32020 Telecommunications Industry Roundup5G developments to keep pace with growing numbers of mobile subscribersAccording to GSMA Intelligence, in 2020, billion mobile connections are forecasted to increase to billion by 2025. There will be 600 million new added connections in which two-thirds of it are coming from Asia Pacific and Sub-Saharan Africa.

6 To grow revenue and cut costs in a low-growth economic environment, operators are increasingly seeking ways to develop the mobile ecosystem. This development stage is made more complicated by the demanding requirements of 5G services, high speed, low latency, and ultra-reliability. Mobile operators will need to evolve networks using innovations such as virtual RAN, edge networking, and network automation to meet the demands of the 5G era. Operators will also need to diversify revenue streams into areas such as media and entertainment, advertising, and IoT to seek growth beyond providing core Telecommunications services. While speed is the most touted benefit of 5G, other improvements ( network slicing, edge computing, and low-latency services) are beginning to gain traction as the next major steps for 5G services and benefits. For the next five years, 4G networks will still have the majority of connections worldwide in both consumer and enterprise levels, accounting of the connections worldwide.

7 However, most of the key benefits of 5G for enterprises will not be unlocked until standalone 5G architecture is deployed and operational, as its advanced capabilities address new markets and make new use cases commercially viable. There are still many considerations for operators as they strive to ensure a successful evolution of the network, while also maintaining a profitable business and increasing future Telecommunications Industry Roundup4 COVID-19 s Impact on the Telecommunications Industry012020 Telecommunications Industry Roundup6 The COVID-19 pandemic has been an extraordinary test for consumers, businesses, and communities, causing widespread concern and economic hardship across the world. As lockdowns and movement restrictions were imposed in many countries to respond to the growing outbreak, increasing numbers of consumers turned to digital channels for entertainment, information, education, and to stay in touch with family and friends.

8 This led to a whole new emphasis on the importance of network connectivity and services offered by the Telecommunications sector. Due to major COVID-19-related restrictions set by governments, such as stay-at-home orders and quarantine measures, the Telecommunications sector saw a massive spike in data traffic and increased use of broadband services as more people relied on connected devices and IoT devices throughout 2020. For example: According to KPMG UK, during the peak of isolation, Europe saw a spike in internet traffic, going to as high as 70% in 2-3 weeks. Streaming services observed a jump of approximately 12%, with tech giants such as Facebook, Amazon, and YouTube reportedly having to lower video qualities in Europe to ease network For IoT devices, General Electrics (GE) Digital offered free Remote Monitoring and Control licenses to their iFIX and CIMPLICITY consumers to support remote working. On par with GE, Siemens made their Additive Manufacturing (AM) Network and 3D printers available for the global medical community, which aimed to speed up design and production of medical traffic growth observed by several companies across different industries clearly displayed an increased reliance on connectivity and digital services.

9 In response to this development, mobile operators and digital service providers adapted to changes in demand and demonstrated agility through accelerated channel shifts and enhanced digital that effect, the Telecommunications sector continues to play a critical role in supporting governments, consumers, and businesses as they navigate the following three conditions of adjustment for the uncertain times ahead: The Now, which emphasizes supporting people, consumers, and suppliers. The Next, which calls for refocusing the business to withstand new threats and seize new opportunities in a slowly recovering economy. The New Normal, which will see rapid shifts in cultural norms, values, and , COVID-19 Pushes Up internet Use 70% And Streaming More Than 12%, First Figures Reveal, , The impact of COVID-19 on the internet of Things now and beyond the Great Lockdown: Part 2 of 2, Developing resiliencein the face of a global crisisThe importance of connectivity has never been more emphasized.

10 Over the course of the pandemic, mobile operators delayed 5G rollouts to focus on ensuring people could stay connected to their family, friends, and workplaces. As a huge number of people relied on mobile technologies during lockdowns, work was done in 4 key areas:Maintaining StableInternet ConnectionWith entire populations suddenly confined to homes, networks in domestic areas felt the strain from the surge in online activities related to work and leisure. To maintain the network stability expected by people, operators added capacity or reconfigured capacity profiles accordingly to ensure networks remained robust and Vital InformationWorking closely with governments to reach out to urban and rural communities, operators helped to deliver vital information directly to mobile devices. Operators leveraged big data capabilities to monitor and limit the spread of COVID-19 by providing timely health and emergency updates.