Name: 5G Technology Is Rolling Out And Slowly Transforming Our Lives
Uploaded: 2019-11-07
Duration: 18 min 54 s
Description: How will the new technology transform lives and businesses? How long until consumers really notice the difference?

Good morning everybody. Paul, thank you for being here with us. So this is probably going to seem pretty basic, but what is 5G and why should we care? You know Michal because everybody thinks 5G is about speed, right? Everybody thinks 5G is speed, right? It has nothing to do with speed. It's all about money. Really, it's all about money, quite frankly. So let's have a think about this. In the 4g era 3 and 2g era, the cost for the telecom companies is increasing the operating cost increases. 5g is cheaper than 4g. Mm- hm. All right, not the capital costs but of the overall perspective, yes. And just now you heard from Klay talking about things like in the enterprises transforming the world. If we look at 5G very specifically in health, let's take a day in the future. You can have virtual consultations, you can have holographic solutions all based on 5G, you can't do this in 4G. But everybody int he world thinks that 5G is about smart phones, smart phone. You're not going to download Spider- Man in three seconds, you don't care about that, you're streaming. Okay, speed is a part of the overall picture here though, and so what kind of speeds are we talking about, what's possible, Today. So let's give some examples. I know while it's always a hot topic in the US, but we're delivering avout 650 megabytes to rural US, rural economy thing is using 4G. Mm- hm. So now where's 5G gonna take us? 5G, one to three gigabytes per second? Very easy to achieve using 5G technology But again, it's not about the speed. I telecom operator China Mobile China Telecom journey. They can't monetize all this speed to make a user happier or get more money from a user to make more money. Mm- uh So, to monetize speed for equal consumers is very difficult. Unless you move into gaming or holograms and things like this. But the real money, the real transformation for society, and that's what 5G is about, is really moving into the enterprise or the B2B business in manufacturing or health for example. Okay, so give a few more examples. You mentioned manufacturing health Some of the the use cases there are obvious what are some of the not so obvious use cases that you're starting to see or could see down the road in the next couple of years or so. Sure. So let's take one that has very little money attached to it at all. And that's cool, I thought it was all about money. It's all about so let me explain how me Hi It's the money not directly, yes? Let's talk about connected ambulances. So in the UK they have a concept of connected ambulance. And I'm sure here in China, as well as Guangdong on Beijing or Shenzhen, it doesn't really matter. But ambulances being connected, with the high technology equipment inside, need low latency, and they need high speed. They save lives if we can do this. Now saving lives directly doesn't have a lot of money, but to the politicians to the people, there's a flow on effect, which is why it's always about money. But the challenges that today, the government says I want four or five G to 95 % of the people. But you know, when I'm in the UK, I can't travel on the in one. Without a cold dropping. If I'm in Australia, a call drop, if I'm in the US a call drop, let alone have a an ambulance with high technology built inside connected by 5G. So you can see that the telecom operators will have challenges. But what I see here in China is that we are deploying 5G technology on the lamppost. The lamppost so where the cars are and where the people are. So, in China, we think differently. We think about execution, we think about where's the business benefit to society. But in a lot of other countries, you know, they're trying to say whose first the race to move forward. I was with Korea telecoms senior vice president on the weekend and the World Economic Forum in Dubai. And he gave a very good example of how to save lives for people who are lost. Mm- hm And you have here very good examples in China where within half a half an hour, you can identify people because of all the cameras. But the cameras, the only way they can see So what they've done in Korea is they launching dirigibles, like A ships and they using 5G control these so that they can see this here in China we're using drones with 40 megabits to be able to come back to be able to find the criminals, the speakers. So these things change lives, these things improve society, they improve security. But you're not saying that China doesn't care about being first, are you? Because you mentioned in other countries, it's about the race and that here, it's about what's better for business and what's better for the people. We just saw an announcement that 5G rollout Here in China is actually ahead of schedule, there's a reason why these announcements are put out there, so, Of course. What do you make of the race? [ UNKNOWN ], look it's, of course that's a marketing message, whether it's a marketing message between two companies or three companies, or it's between one, or two, or three countries, yes? Everybody would like to claim they are first, they are first, they are first. But let's think about the real benefit. I mean, you can say your first and then everybody's gonna be saying but why can't I use it? Or you said I have a first in in health. Look, we have a great example between Beijing hospital and one of the provinces with remote medical robotic based over 5G surgery. That's a first But that's one. How do we scale that across the whole industry so that rural provinces have access to these sorts of things. So you can be first, but do you have the business model? Do you have the ability to execute? And the difference quite frankly, is if you look at the incentives the way they driven here in China, I can still remember in 2014 6 countries in Europe spent 18 billion euro on 4G licences. At the end of 2014 only 60, 000 4G base stations 60000. Here in China just 1 telecom operator A couple of $ 100 million equivalent for the license, 720, 000 by stations 4G at the same period. So you see the incentive policies are quite different. Now you come to 5G. UK 1. 4 billion Pounds, Italy 5. 6 billion Euro, I'm not sure how much in America. But here in China spectrum spectrum spectrum incentivize, try to get these things moving. It's more about delivery than saying I'm first and then suddenly finding you have nothing to do. Okay, well, you basically live on an airplane you spend your time going around to a lot of countries. We're all very aware of the situation with Huawei in the US. Your motherland Australia is not all that, [ LAUGH ] Much more welcoming to you either. But talk about what you're seeing in other countries because they're the world's big, obviously and you guys operate in many different regions. Who is, other than where we sit today, what regions of the world are really pushing this aggressively, and what are you seeing about different strategies and how they're rolling out? Okay sure. So first of all, here in China, if I'm not mistaken, as of last week, we have baout 45, 000, Yeah, 5G base stations just here in Guangdong if not probably just in Shenzhen. We have at least ten million people who have pre registered for 5G. Let's put that in perspective in South Korea. You have KT which has 1, 000, 050. Okay, just put the numbers. So, who's gonna move forward and, backwards and, things like this in terms of this race you've set for consumers. In the Uk all four operators so, the United Kingdom all four operators have announced strategies where they've already deployed in between 10 and 15 cities through out the UK. Now, you have countries like Germany. Okay, Germany's become very different with a company like Siemens getting spectrum. And the reason they're doing that is because, Siemens is a big, big Manufacturing Corporation. And I think everybody knows the company, very reputable, very, very clever, very innovative, but they can see that if they deploy 5g in the factory, they save about 1 % productivity. That's about a hundred billion dollars. Right? So the opportunity can be with people for consumers. You talked about speed the opportunity can be for low latency in hospitals, and in medical the opportunity can be in many connections connecting all these robots here in China with Huawei were experimenting with other manufacturers You know this room today, now we have a lot of people, maybe 200 people here. But in six hours, there's nobody. But tonight we can bring in half a dozen robots, connect them to 5G here in this room. Connected to an AI platform in a cloud. And then the robots will self organize themselves to make. A bottle or maybe a glass tomorrow? Yes. So we can change the nature of manufacturing because manufacturing for the last 150 years has been very linear. You do a job, you pass it to pull back in the old days, right. That was linear based manufacturing. Today robot A does a job even in a car factory passes it to robot B, passes it to robot C. But you imagine if these are all self organizing it completely transformed this manufacturing So you have an example also in Norway speaking of older industries that are being disrupted and revolutionized, can you talk about that? So in Norway we have a concept called the facial recognition of the fish And in Norway, they have these big fields. So Norway does two things. The first one they have a lot of oil, oil and gas is they make hundreds of billions trillions of dollars in oil and gas, but their second biggest industry Smoked fish >> Is fish, salmon very specifically. So if you go along the Norwegian coastline of about 5000 kilometers. You see rows and rows just like this, of this stage of circular fish tanks in the field. Now all these fish tanks are connected by fiber to ship which is connected by fiber to the land. The fiber breaks, the maintenance cost is high, they need a lot of people to manage the ship. They're monitoring the fish. They're feeding the fish remotely. They're analyzing the pollution and the water, the temperature and all the pollutants. They're analyzing over the fish feed. Now when we do 5g, we're bringing 5g in from the coastline directly to this fish farm. So we save money because we don't need people. We have higher quality of cameras, which is why we can recognize the parasites on the fish. And yes, we're gonna be recognizing the fish themselves because it's increasing productivity. Increasing productivity lowers the cost, you make more money. So you're not kidding. It's really is facial recognition for salmon. Absolutely. Wow! We save 20 % on the on the feeding of the fish, about 4 to 5 % on stock improvement through recognition of lice and other things. And then we save about 150 million dollars on on manpower saving. Wow. Okay. I wanna go back to talking about, you say I'm calling it a race. I think everybody calls it a race at this point. But they're clearly China has the first mover, first manoeuver advantage here. What do you see going forward? I think we're all aware of where things stand in the US and the issues with Spectrum and of course with suppliers. Yes. But do you see that firs tmover advantage sticking over the next few years Or is it something that could look different a few years out. What would it take for it to look different? That's a very challenging question. But you see the stimulus, the need, China's understood a couple of things that I've seen since I've been living here and working in Huawei for the last 11 years or so. They understand that to move forward, you need to leverage technology. So which technologies? Artificial intelligence IoT, and specifically through Huawei, five genius. So the Chinese government understands that these technologies are intrinsic To economic growth and industrial development, they understand it. They understand it so much that they incentivize, It's a bit like how did why, what how did Ali Baba and 10 cent and others move forward. Just go and do it we'll see how it works. So they encourage these things. In the west we have a regulator, right? What I see is we have regulations. But in China, I see enablement and innovation. It's very different. So, how to make your saying others catch up or what would it take? I travel around the world I make most of the Presidents, Prime ministers, ministers, regulators, everybody, all the countries have kings and queens and this is my Explanation and suggestion to them. Change regulatory policy to enable investment, to enable innovation, and you will transform your economy. That's what's required. Here in China, 45, 000 [ UNKNOWN ] in one city. In one city. But into this year, there will be three of 400, 000 sites just within China. The rest of the world will be similar. Most of that is actually in Europe and the Middle East. Why the Middle East? Because the government's administration's they understand they can't survive on oil forever. And they have real requirements and they want to transform. The Minister of Dubai, I was on stage with him in the World Economic Forum in Dubai. If you listen to his vision and what he wants to fix, understanding technology, including things like AI, not forgetting security, not forgetting privacy, but to have mature discussions about privacy and security, rather than scare mongering and saying, we can't trust this, we can't do that. Collaboration is far better. Then, trying to isolate. I know you've been asked about this repeatedly, you just want and, did a bunch of interviews in the states and, clearly it's been a very hot topic. But, this offer or, dialogues that Justin whatever you wanna call it Licensing 5G technology to US companies. How real is that and what could it look like. Okay. So if we were to take at its basic, the basic premise, which is Western countries and led by one administration, I'm not gonna say one administration is right or wrong. That's not my job. But if we say that that's the first premise that there is a fear. So why always made an offer which is very simple. If you really fear it will license it to you. You can pull it apart, you can fix what you want. And you can develop you can compete with Huawei. You can OEM you can do what you like. That's a fair offer. Yes. People say it's an unusual offer. Nobody's ever done this well, in 2003 while I did it with Motorola, between 2003 2008 we licensed their 3G technology to Motorola, a Western company. Huawei, the same thing for technology. There's nothing special about it. It's it's an OEM arrangement, but it's an offer that Mr. Ren is putting out there to say If you really believe that there's no competition in the world or you'd like an American champion or you'd like to use your own version of this, please, we're open. And this is an example if you listen to Mr. Ren, he's very forward thinking He's very pragmatic in what he talks about? Don't take too much market share. You must be part of an industry supply chain. Right? We must buy from the US. US best buy from China. That's fair. That's go global trade. So if you want these sorts of things to move progressively forward, then we need to think more laterally about solutions and we need dialogue Mikheil. Agreed. A lot of people though have called it more of a call my bluff kind of offer. What likelihood would you give this actually happening. I don't speculate on the future, right? I'm a technologist, sorry and try to be a bit of a business man or an entrepreneur. No idea .>>> Okay ,>>> No idea. Sorry . Okay, fair enough. Another question for you. You mentioned rural areas in the US specifically obviously, that's something that's of interest and of concern across The world and so as cities and urban areas are increasingly becoming more connected and getting 5G. What does that do to the digital divide that exists in so much of the world and how are you addressing? So that's a very good question. The reason it's a good question. It was one of the hot topics in the World Economic Forum in in Dubai on the weekend. And there is the fear that the gap gets gets bigger, that the rich get even richer and through these sorts of technological advancements, whether it's 5G [ INAUDIBLE ] So, to put things back in perspective, remember I said 5G is cheaper than 4G is so what we do know is that 5G is like a big bucket, so, okay. Like a big bucket of water but, it's a bucket that holds more than it's equivalent 4G. So, if you're going to invest in this infrastructure for a similar price, you get more. So, you get more bang for your buck, more bang for your buck means, I can get more customers Which means I'm incentivized to actually deploy because remember, the telecom companies are commercial entities. But the government needs some sort of stimulus to try to get them to, to deploy these in the rural areas. So any common infrastructure is a value to the rural economies. But when I was in the US the most interesting comment I got back from the Midwest. Companies. The reason I love Huawei, the operating cost is zero. The product doesn't fail. Mm- hm. So that means their operating cost is even lower. And the biggest cost for a telecom company is operations [ UNKNOWN ] opex, opex, opex. But coming back to the capacity of 5G, it has the ability to give more to more people. For a similar number, what we've never spoken about is that 5G can reduce the carbon footprint. Everybody talks about speed, but we know if we continue to deploy 4G across the world, you will double the carbon footprint of the mobile networks and if we use 5G, you reduce that. So these things are all interrelated, right? But five gene rule has very good application. Well, we unfortunately need to wrap it up, but we look forward to having you back and hearing more updates a year out, hopefully. So thank you so much for being with us. Thank you very much for having me. [ APPLAUSE ] I will see you back today. Certainly. [ BLANK_AUDIO ]

5G Technology Is Rolling Out And Slowly Transforming Our Lives

Tech

How will the new technology transform lives and businesses? How long until consumers really notice the difference?