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5G connectivity in the real estate marketDecember 2022群内每日免费分享5份+最新资料 群内每日免费分享5份+最新资料 300T网盘资源+4040万份行业报告为您的创业、职场、商业、投资、亲子、网赚、艺术、健身、心理、个人成长 全面赋能!添加微信,备注“入群”立刻免费领取 立刻免费领取 200套知识地图+最新研报收钱文案、增长黑客、产品运营、品牌企划、营销战略、办公软件、会计财务、广告设计、摄影修图、视频剪辑、直播带货、电商运营、投资理财、汽车房产、餐饮烹饪、职场经验、演讲口才、风水命理、心理思维、恋爱情趣、美妆护肤、健身瘦身、格斗搏击、漫画手绘、声乐训练、自媒体打造、效率软件工具、游戏影音扫码先加好友,以备不时之需扫码先加好友,以备不时之需行业报告/思维导图/电子书/资讯情报行业报告/思维导图/电子书/资讯情报致终身学习者社群致终身学习者社群关注公众号获取更多资料关注公众号获取更多资料2Ericsson|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 measurements 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 facilities 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 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 managers 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 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 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 increased 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 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 abilities 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 connectivity,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?4Ericsson|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.Consequentially,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 offices 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 million 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 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.Extending 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 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 well 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 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 real 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 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 connectivity 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 requiring 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 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 currently 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 Estate 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 device 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 the 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 barriers 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 partnersUnclear 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 necessary 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 factors 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 monetization 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 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 could 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 particularly 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 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 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 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 commercial 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 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 assets 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 for 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 exactly 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 still 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 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 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 services 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 a