Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 - Deloitte's Study of Advanced Wireless Adoption - India Edition April 2021
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Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Deloitte’s Study of Advanced Wireless Adoption - India Edition April 2021
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Contents Introduction04 Networking executives have rapidly shifted their focus to advanced wireless 06 Advanced wireless is foundational to innovation and transformation 19 How adoption of advanced wireless is unfolding 29 Considerations for networking decision-makers 39 Endnotes41 Connect with us 44 03
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Introduction In our hyperconnected era, the number in Q4 2020 to 437 networking executives of networked devices may reach 29.3 from nine additional countries, billion by 2023—more than three representing organizations with plans devices for every human being on to adopt 5G and/or Wi-Fi 6 (see sidebar, the planet.1 Next-generation wireless “Methodology”). technologies such as 5G and Wi-Fi 6 are poised to become a crucial part of the We uncovered key insights about how networks that link machines and people. and why organizations around the world By offering significant performance plan to adopt advanced wireless: improvements—such as faster speeds, increased data capacity, lower latency, The pandemic has accelerated the greater device density, and precise shift in focus to advanced wireless. The location sensing—these new wireless COVID-19 pandemic has catalyzed a shift technologies are already enabling novel in priorities: Remarkably, half the global solutions, including autonomous vehicles, networking executives we surveyed precision automation and robotics, report that the crisis has spurred telemedicine and telesurgery, immersive their organization to accelerate retail and entertainment experiences, investment in wireless networking. and augmented-reality workplace They’re focusing on newer technologies collaborations. such as 5G and Wi-Fi 6, which they view as a way to bolster their ability to Innovative solutions such as these address current and future disruptions, are why leaders across industries as well as an opportunity to create new see advanced wireless networks as solutions. Our earlier survey indicated increasingly essential to their strategies. that executives planned to take And rising urgency is accelerating a shift up to three years to shift their attention in focus to 5G and Wi-Fi 6, far faster than to 5G and Wi-Fi 6 from older wireless what executives forecast less than a technologies, but priorities have changed year ago. much faster than anticipated. In early 2020, Deloitte surveyed US-based Advanced wireless is foundational to networking executives to understand innovation and transformation. As how US enterprises are approaching the latest in a decades-long evolution advanced wireless technologies and of wireless technologies, 5G and how they expect to benefit from Wi-Fi 6 promise performance and the new capabilities.2 Shortly after operational improvements over previous that survey wrapped, the COVID-19 generations. More significantly, they pandemic plunged the world into a time enable innovative usage scenarios that of extraordinary disruption, spurring aren’t merely incremental advances.4 a global recession with substantial Indeed, networking executives expect workforce and IT implications.3 To next-gen wireless to be integral to their obtain a global perspective on advanced business success and transformational wireless adoption and assess attitudes for both their enterprises and industries, during the crisis, we extended our survey representing an opportunity to change 04
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 how they operate, innovate, and telecom and technology vendors (for sell. Leaders view advanced wireless example, application providers, cloud technologies as foundational to their companies, wireless carriers, network efforts to implement innovative equipment providers, component technologies at the heart of their digital vendors, and consulting firms/ transformation efforts, including big integrators) and often with multiple data analytics, artificial intelligence vendors of each type. Two-thirds of (AI), Internet of Things (IoT), cloud, and adopters prefer to purchase best-of- edge computing. More than ever, these breed components, and many seek technologies are converging in enterprise help with integration. With seven in innovation initiatives, with advanced 10 adopters indicating they’re open wireless at the core. to exploring new relationships, it will become increasingly important for The ecosystem is complex and vendors to carve out and solidify their evolving. Adopters engage with myriad position. Methodology To understand how enterprises around the world are adopting advanced wireless technologies, including motivations, challenges, and preferences, Deloitte in Q4 2020 (during the COVID-19 pandemic) surveyed 437 IT and line-of-business (LoB) executives in nine countries, who are responsible for connectivity at organizations in the process of adopting 5G and/or Wi-Fi 6 or planning to adopt either technology within the next three years. The countries represented: Australia (51 respondents), Brazil (51 respondents), China (50 respondents), Germany (50 respondents), India (51 respondents), Japan (51 respondents), Netherlands (50 respondents), Portugal (29 respondents), and United Kingdom (54 respondents). Eight in 10 executives decide networking investments; 7 in 10 manage implementations. Seventy-one percent of respondents are IT executives; the rest are LoB executives. Fifty-nine percent are C-level executives, including CIOs and CTOs (48%) and CEOs, presidents, and owners (10%); 22% are senior VPs/VPs/business unit heads; and the remaining 19% are senior directors/directors. In terms of company size, 15% have an annual revenue of US$50 million to US$500 million; 20% have revenues of US$500 million to US$1 billion; 34% have revenues of US$1 billion to US$5 billion; and 31% have revenues of US$5 billion or more. Six industries are represented in the survey: consumer, retail, and automotive (25%); technology, media and telecom (19%); energy, resources and industrials (19%); financial services (22%); life sciences and health care (8%); and education (6%). Note: Our prior survey of 415 US networking executives5 was conducted in Q1 2020, before the effects of the COVID-19 pandemic were felt in the United States. Both surveys have similar respondent profiles. 05
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Networking executives have rapidly shifted their focus to advanced wireless Deloitte’s early 2020 study found that critical wireless technologies for their US-based networking executives still business initiatives (figure 1). And in viewed 4G/Long Term Evolution (LTE) and the next three years, as physical 5G current (or previous) versions of Wi-Fi as infrastructure is built out and 5G devices the most critical wireless technologies become more available, leaders expect for their businesses. Most viewed 5G and the new technologies to become even Wi-Fi 6 as up-and-coming over the next more significant.7 It’s worth noting that few years.6 executives now see 5G and Wi-Fi 6 as higher priorities than 4G LTE and Wi-Fi Attitudes shifted quickly: Nine months 5 (and older versions) in nearly all the later, global networking decision-makers countries we studied.8 regard 5G and Wi-Fi 6 as the most 06
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Figure 1 : Networking executives already regard 5G and Wi-Fi 6 as the most critical wireless technologies for their business initiatives—and their importance will continue to grow Percent ranking each a top-three critical wireless networking technology for their organization’s business initiatives 76% 65% 69% 58% 43% 42% 31% 39% 24% 15% 5G Wi-Fi 6 NB–IoT Wi-Fi 5 or older 4G LTE Today In three years Note: N=437 global networking executives. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. About two in five executives ranked Others have noted the extent to Narrowband IoT (NB-IoT) in their which the pandemic has catalyzed top-three most important wireless change in the technology, media, technologies, although enthusiasm varies and telecommunications industry, considerably by country—in China and compressing what was expected to be India, three in five networking executives years of gradual change into several ranked it within their top three, reflecting intense months.11 Our study findings higher uptake in those countries.9 As corroborate this: Half the networking part of the upcoming 3GPP Release-17 executives we surveyed expect to boost 5G specification, NB-IoT can play a role in their wireless networking investment organizations’ 5G IoT evolution strategy.10 due to the pandemic (15% report they’ll invest significantly more), while less than The COVID-19 pandemic is accelerating a quarter report pullbacks (figure 2). wireless investment Why has leaders’ focus shifted toward advanced networking technologies Figure 2 : Half the networking executives much faster than our 2020 study expect to boost their investment due suggested? For several reasons that to the pandemic the world saw play out in real time over Compared to our planned wireless networking investments before the pandemic, the COVID-19 the nine months that separated our crisis is causing our organization to invest . . . two surveys. The COVID-19 pandemic caused surging demand for better connectivity to support remote working, 23% online learning, and automation. The crisis vividly underscored organizations’ 7% 16% 26% 35% 15% need for ubiquitous, secure, high-quality connectivity to reduce onsite personnel, 50% maintain business operations, and support virtual employee interaction and Significantly less Somewhat less No change customer engagement. And it highlighted the value of virtualization and automation Somewhat more Significantly more capabilities that enable more flexible, remote management of enterprise Note: N=437 global networking executives. operations. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 07
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 The primary stated reason for escalating The pandemic may well be accelerating wireless investment is resilience— demand for novel products and services augmenting an organization’s ability to that rely on a more robust and powerful address current and future business network infrastructure. Indeed, the disruptions (figure 3). After all, number-two reason cited for increasing the pandemic will surely not be the wireless investment is to create or last crisis companies face in the next enhance solutions that address new use several years. Consider the example of cases. As a case in point, enterprises a major telecommunications company in China have utilized 5G in a variety of that deployed a private 5G network on crisis-related solutions aimed at limiting a factory production floor to address personal interactions, including hospital pandemic-related challenges: Leaders robots that performed disinfection were able to rapidly deploy safety use and medicine deliveries and driverless cases, such as scanning employees for vehicles that delivered food and medical face masks and monitoring smart badges supplies to quarantined individuals.14 to ensure that workers weren’t in close Companies have also leveraged the proximity for too long.12 And instead high bandwidth and low latency of 5G of flying in specialists to repair robots, networks for telehealth, including remote managers outfitted local employees with medical consultation and diagnosis of “mixed reality” headsets so that remote COVID-19 and remote, robot-controlled technicians could guide them. A number ultrasounds. of companies have been rolling out new wireless applications and services The number-three motivator for designed to keep personnel safe in increased spending relates to a desire for the workplace, including solutions that better network security and data privacy. use Wi-Fi to sense when devices enter As the pandemic pushed more workers building areas and real-time analytics to and their devices offsite, leaders may flag occupancy issues.13 have realized they needed to invest more in protecting devices and data. Figure 3: Networking executives who are increasing wireless spending due to the pandemic cite wireless’s ability to help them address disruption, create solutions to address new use cases, and enhance network security Percent ranking each a top-three reason the pandemic is causing them to invest more Increase ability to address current 59% and future business disruptions Create or enhance solutions to 48% address new use cases/challenges Enhance network security/privacy 46% Support increased bandwidth 41% requirements for remote workers Engage with customers seamlessly, 38% through digital platforms Enable digital selling with virtual processes and tools 33% Unlock new business models to 26% thrive in the “new normal” Note: N=220 global networking executives who indicated their organization is increasing wireless investment due to the pandemic. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 08
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Strategic importance and adoption are (such as 5G smartphones), hardware/ on the rise equipment, software, installation, and Networking executives recognize the operations services (but not including importance of advanced wireless for costs for spectrum), our respondent their business success today and believe organizations estimate their three-year it will be essential to thriving in the spending at US$149.7 million on average. postpandemic era. Four in five currently In our earlier study, US networking see advanced wireless technologies executives reported they would spend as very or critically important for their an average of US$115.7 million on their business—and the same number expect wireless investments over a three-year to hold that view in three years. Adoption time frame. The higher spending estimate is set to take on more urgency: One- outside the US likely reflects the passage fifth of networking executives view the of nine months between surveys, as well technologies as critically important for as the catalyzing effects of the pandemic. their enterprise today; one-third say they will be critically important in three years. The surveyed organizations are going all- in when it comes to adopting advanced Backing up their strategic view, these wireless technologies. By design, our executives are planning significant survey included respondents from wireless networking investment over organizations that are in the process of the next three years. Considering all the adopting 5G and/or Wi-Fi 6 or plan to wireless technologies (such as 4G, 5G, adopt either technology within the next various types of Wi-Fi) they expect to use three years. In practice, we found that over this period and the cost of devices adoption is well past the planning stage: Figure 4 : 67% of respondents’ organizations are either running pilots or deploying Wi-Fi 6 solutions; 58% are doing the same with 5G Level of adoption of each technology Wi-Fi 6 18% 22% 27% 23% 8% 5G 15% 16% 27% 29% 13% Deploying enterprisewide Deploying in many departments Started pilots/experiments in several departments Preparing to use Planning to use in two to three years Note: N=437 global networking executives. Numbers may not total 100%, due to a small number who reported “no plans to use.” Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 09
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 two-thirds of respondents’ organizations digital whiteboards, and immersive are either running pilots or deploying collaboration experiences enriched by Wi-Fi 6 solutions, while 58% are doing the virtual reality (VR)/augmented reality (AR) same with 5G (figure 4). Roughly another technologies.16 quarter are in the process of actively “preparing to use” each technology—for The third-most-cited use case for example, acquiring devices/infrastructure employee connectivity relates or identifying potential providers and to IT administration and remote partners. troubleshooting. For example, 5G is poised to play a role in remote Enterprises pursue a variety of usage management of workers’ mobile devices, scenarios enabling IT professionals to rapidly push To leverage the capabilities of advanced data-intensive updates to a large number wireless, adopters tend to target a blend of devices.17 Companies are already of indoor and outdoor usage scenarios, using 5G technology to connect remote and a blend of fixed and mobile networks 3D designers and video editors to their (figure 5). Organizations use advanced high-end workstations back at the office, wireless networks to connect employees, providing 4K-quality streaming and machines, and customers. When it comes allowing them to perform CPU-intensive to employee connectivity—both inside tasks from afar.18 A UK water company and outside the office—the top two has been using a private 5G network to use cases involve enhancing workplace enable a “remote expertise” use case: As communication and collaboration (figure newly hired technicians encounter issues 6). For example, organizations can use with equipment in the field, AR headsets Wi-Fi 6 to increase the speed of voice and relay the situation to experienced video, untethering workers from desktop colleagues who guide the troubleshooting phones and wired connections.15 And with remotely.19 so many professionals working remotely during the pandemic, 5G may enable Advanced networking also enables new ways to improve collaboration and many new applications for machine productivity, such as connectivity—inside facilities, on high-resolution, multiperson campuses, and in broader areas such videoconferencing, interactive as shipping ports and international Figure 5: Advanced wireless adopters tend to say they’re focusing on usage scenarios involving both indoor/outdoor networks and fixed/mobile devices Focus of company’s advanced wireless networking scenarios More focused on indoor networks More focused on fixed networks (e.g., inside offices, manufacturing 30% 27% (devices stay onsite and do not facilities, lecture halls, labs) move around) Even mix (e.g., covering a university Even mix of fixed campus, large manufacturing site, 45% 47% and mobile oil refinery) More focused on outdoor networks More focused on mobile (e.g., covering airport, shipping port, 24% 25% networks (devices move around or industrial park, and/or wide and go offsite) geographic areas beyond) Note: N=437 global networking executives. Numbers may not total 100%, due to a small number who reported “Don't know.” Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 10
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 airports. For example, video surveillance problems before they occur.20 Companies in factories can allow human operators are also using wireless technologies (or AI systems) to remotely supervise to connect machines directly to other equipment in real time, and 5G can machines—for example, in vehicle-to- deliver the ultrareliable, low-latency vehicle safety systems.21 communication needed to drive maintenance via robots. Augmenting a Wireless technologies are also powering smart-factory floor with wirelessly linked enhanced customer experiences. IoT sensors enables massive streams of Municipalities are already employing a data about the performance and health combination of Wi-Fi 6 and 5G to drive of equipment, and analytics can predict smart-city solutions that improve public Figure 6: Enterprises are targeting a wide range of usage scenarios with advanced networking Employee Machine Customer networking networking networking Workplace Advanced customer Remote communication experiences monitoring/contro Faster and seamless Cloud-based mobile l Video surveillance, #1 upload/download of files from cloud, connected assembly lines for production apps, autonomous stores, immersive remote document sharing, AR/VR/3D features, processes, messaging, accessing entertainment, telemedicine internet video-based checkups Security and fraud Advanced Machine-to-machine prevention #2 collaboration tools communications Biometric checks, Mobile video conferences, Vehicle communications geolocation transactions, AR/VR/3D experiences, and safety systems, smart contracts / remote workplaces assembly/production line blockchain Advanced analytics Insights on shopping IT administration Advanced analytics patterns or on-floor #3 Remote troubleshooting, managing workstations/ servers/ mobile devices Insights on sensor-generated data, movement, pricing, forecasting, recommendations, edge computing geofencing-based notifications Asset tracking Enhanced Network Inventory management, customer support #4 management sensors in containers/ Remote diagnostics, Software-defined WAN, goods/machines, video chats, 3D network slicing geofencing, blockchain/ consultations smart contracts Automation Digital payments Advanced analytics #5 Autonomous vehicles, Mobile wallets, in‐car Device usage, remote-controlled robots payments, connected cloud usage or drones, delivery robots commerce Note: N=437 global networking executives. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 11
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 services, including real-time traffic bodies and wireless alliances continue monitoring/optimization and geofencing to propose solutions for the remaining applications that can deliver personalized technical challenges around seamless alerts to anyone within a predetermined interoperability.26 geographic area.22 In health care, next- generation wireless initiatives enable Networking executives report their real-time remote patient monitoring, enterprises are adopting both high-definition video consultations, technologies for their wireless initiatives, and even remote medical procedures indicating they prefer Wi-Fi 6 for indoor, using robots—the need for which grew on-campus, and fixed network situations more urgent during the pandemic.23 and 5G for outdoor, off-campus, and Sports organizations are using 5G mobile network environments. Adopting and Wi-Fi 6 to deliver more engaging, the technologies in parallel makes sense. immersive stadium experiences. And Fully 45% are already deploying both Wi- retail companies are combining advanced Fi 6 and 5G in their business or piloting/ wireless with IoT sensors and analytics experimenting with them, with another to support smart inventory systems, 35% actively preparing to use both—for optimize product pricing, and personalize example, acquiring devices/infrastructure shopping experiences.24 and identifying providers (figure 7). Nearly all expect their organization to be Enterprises adopt Wi-Fi 6 and 5G in using both 5G and Wi-Fi 6 within the next parallel two to three years. Projected investment The huge amount of attention advertisers reflects coadoption as well: Over the next and news editors have lavished on three years, these organizations expect 5G has undeniably overshadowed to split their wireless spending fairly Wi-Fi 6. But both will have a significant evenly between Wi-Fi (48%) and cellular role to play in the future of wireless. technologies (52%). Unlike past generations of wireless, 5G cellular and Wi-Fi 6 networks will be Parallel adoption of 5G and Wi-Fi 6 is also able to interoperate seamlessly with apparent when we take a deeper look one another and are widely regarded by country (figure 8). In all geographies as complementary technologies in studied, more than half the networking the wireless ecosystem.25 Standards executives report their organization 12
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Figure 7: Organizations are adopting Wi-Fi 6 and 5G in parallel to meet the needs of their advanced wireless initiatives Wi-Fi 6 Planning to Piloting/ Preparing Deploying use in two experimenting to use to three years 19% Deploying 8% 3% 2% Piloting/ 10% 9% experimenting 6% 2% 5G Preparing 13% to use 8% 5% 2% Planning to use in two to three years 6% 2% 1% 3% 45% are already deploying or piloting both 5G and Wi-Fi 6 80% are deploying, piloting, or preparing to use both 5G and Wi-Fi 6 98% believe they’ll be using both technologies within two to three years Note: N=437 global networking executives. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. deploys or pilots Wi-Fi 6, and in Germany, for 5G services, and some auctions have Brazil, the United Kingdom, China, and faced delays. The Netherlands didn’t Australia, the adoption percentage complete its first 5G spectrum auction reaches 70% or higher. These countries until mid-2020.27 Both India and Brazil also report the highest levels of 5G had targeted 2020 for auctions, but the deployments/pilots. pandemic postponed those plans.28 It’s no surprise that the three countries Wi-Fi 6 has an adoption lead over 5G in all with the highest levels of 5G adoption— countries studied, but double-digit gaps Germany, China, Australia—all had 5G are apparent in the Netherlands, Brazil, spectrum auctions in 2018 or 2019, giving and the United Kingdom. Spectrum their commercial rollouts of 5G a head availability is likely a contributor to start before COVID-19 hit.29 the comparatively slower pace of 5G adoption: While Wi-Fi 6 uses unlicensed spectrum (and therefore has a lower-cost path of entry), 5G initiatives generally require that government regulators auction or allocate spectrum suitable 13
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Figure 8: Deployments/pilots of Wi-Fi 6 currently surpass deployments/pilots of 5G in all countries we studied, with the biggest deltas occurring in the Netherlands, Brazil, and the United Kingdom Deploying + piloting Wi-Fi 6 adoption 5G adoption Wi-Fi 6 vs. 5G Germany 46% 32% 30% 44% +4 Brazil 61% 16% 43% 20% +14 United Kingdom 41% 31% 37% 22% +13 China 30% 42% 40% 30% +2 Australia 45% 25% 37% 29% +4 Netherlands 28% 34% 34% 10% +18 Japan 29% 25% 24% 27% +3 Portugal 28% 24% 14% 34% +4 Deploying Piloting/experimenting Note: N=437 global networking executives. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 14
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 India perspective The fledgling digital ecosystem and the critical for organizations to support and pandemic have accelerated the shift maintain their business operations. towards advanced wireless solution use COVID-19 has further accelerated the Our study corroborates this: A majority digital transformation pace in India. of networking Indian executives (~71%) With immense growth in broadband intend to boost their wireless networking users, India is witnessing one of the investments to higher than the global highest monthly average wireless data average due to the pandemic. The prime consumption rates (12.15 GB) per user, investment is going towards enhancing reaching ~8.2 exabytes (EB) monthly, customer engagements through digital at a 265.3% CAGR during 2016-20.30 platforms, increasing bandwidth for This surge is expected to continue as remote workers, and creating enhanced remote working setups and enhanced solutions to address new use cases. connectivity solutions have become Figure 9: More than half of surveyed executives plan to invest more in wireless networking after COVID-19; India followed by the United Kingdom and Australia are running high on investment optimism IN 18% 12% 71% UK 13% 26% 61% AUS 25% 16% 59% BRZ 31% 14% 53% GER 6% 46% 48% JPN 25% 27% 47% POR 38% 17% 45% CH 22% 36% 42% NTH 36% 40% 24% Causing our organization to invest less Causing our organization to invest at the same level as we would have without the crisis Causing our organization to invest more Note: The charts above might not add up to 100% owing to a small proportion who reported ‘Don't know/unsure’ Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. The ability to address business wireless networking investments. Close disruptions—coupled with increased to half of surveyed executives believe bandwidth requirement and seamless that this will be prioritized along with customer engagement—by utilizing the capability to address new use cases digital platforms is the top reason why and network security enhancements for Indian companies intend to increase their seamless operations. 15
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 More than two- and this is also expected to hold true over the next three years. Adoption is third Indian also set to take on more urgency where one-third network executives view the enterprises are not technologies as being critically important for their enterprises today and expect extremely satisfied it to become more critical over the next three years. with operational Executives are realizing the potential performances benefits of next-generation technologies enabled by future connectivity of their wireless solutions, and thus, plan to prioritize and invest in technologies that are networks essential to their business’ success. Envisioning the wireless traffic across Indian enterprises, approximately 94% executives expect that utilization of 5G and Wi-Fi 6 will overtake previous network generations in next three years. Prioritizing investments across next- Keeping that in mind, close to four out generation wireless technologies of five executives today and in the near With significant deficiencies around future expect services through 5G and network performances, executives in Wi-Fi 6-enabled platforms to be a top India have recognized the importance priority. This is followed by advanced of data-driven technologies and their connectivity solutions through IoT transformational capabilities. services, maximizing opportunities for machine networking and thereby, Organizations are expected to invest improving enterprise-wide operations significantly in network transformational and monitoring. programs for adapting to varying customer and employee needs and proliferation of next-generation wireless services, coupled with digital platforms. Executives in India As we understand, legacy networks place 5G, Wi-Fi 6 were either closed, complex, inflexible, or had limited scalability. These and Nb-IoT most characteristics meant that networks had to be transformed for the evolving critical to their digital world where speed, agility, openness, flexibility, and responsiveness business today and are pre-requisites for success. Almost all executives surveyed currently see in future - highest advanced wireless technologies as very or critically important for their business, among global peers 16
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Figure 10: More than 90% Indian executives believe that 5G will become a key priority three years from now, overtaking previous network generations 100% 90.2% 80.4% 78.4% 90% 72.5% 80% 62.7% 70% 58.8% 60% 43.1% 50% 17.6% 40% 19.6% 19.6% 30% 20% 10% 0% Wi-Fi (Wi-Fi 5 or 4G 5G Wi-Fi Wifi 66 NB-IoT / LPWA below) Current priority Future priority Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. In the next three years, organizations across India, China, and the United Businesses in India Kingdom are poised to place the highest priorities on 5G and Wi-Fi 6 rank second among among all surveyed countries. In view of the aforesaid strategic priorities, global peers in organizations are planning significant investments across hardware/equipment, terms of willingness devices, software, and installation along with operations services. Our to spend on respondents across Indian organizations estimate their three-year spending at wireless networking ~US$165 million (excluding spectrum fees) on an average, only next to Japan, technology to meet making India one of the leading countries with the highest spend forecast. performance gaps 17
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 To make an investment choice in surveyed organizations are preparing deploying either 5G or Wi-Fi solutions, to use both 5G and Wi-Fi 6 in varying the essential role of Wi-Fi for providing capacities, such as acquiring devices/ high-speed, reliable, and affordable infrastructure, identifying potential wireless broadband connectivity should providers, and building partnerships. be acknowledged. With significant While 39% organizations report that they potential benefits, both 5G and Wi-Fi already have started 5G-enabled pilots, are expected to work together, rather around 63% have gone ahead with their than compete, for an enhanced user experiments using Wi-Fi 6. experience. As of now, around 26% Figure 11: 5G is a journey that has just begun in India; a long haul away from emerging in full capacity. Organizations have100% launched pilots across technologies to meet their advanced wireless initiatives’ needs 10% 90% 1 80% 33% 100% 70% 10% 90% 14% 60% 63% 80% 33% 50% 6 70% 39% 40% 60% 63% 30% 50% 69% 39% 20% 40% 26% 28% 10% 1 30% 0% 20% 5G WiFi6 NBIoT 26% 28% 10% No plans to use in near term 14% 0% 5G Planning WiFi6 Wi-Fi 6 to use in the next 2-3 years NBIoT/LPWA No plans to use in near term Started pilots/experiments in several departments Planning to use in the next 2-3 years Preparing to use Started pilots/experiments in several Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. departments 18
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Advanced wireless is foundational to innovation and transformation An overwhelming majority of networking substantially transform their organization executives expect advanced wireless within three years, and nearly as many technologies to transform both their say the same about the effect on their enterprises and industries in the industry (figure 12). Because their near term—especially remarkable industry peers will be transforming considering that 5G and Wi-Fi 6 are the nearly as fast as their own organizations, latest generations of technologies that many of these executives are likely feeling have been evolving for decades. Four enormous competitive pressure to in five believe advanced wireless will quickly realize benefits. 19
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Figure 12: Networking executives overwhelmingly believe advanced wireless will transform their organizations and industries within three years Effect of advanced wireless within three years: 53% 78% say it will transform their organization 69% say it will transform their industry 41% 22% 23% 21% 15% 6% 4% 4% 4% 2% 3% Now Less than In In Beyond May never 1 year 1–3 years 3–5 years 5 years substantially transform Advanced wireless networking will transform our company Advanced wireless networking will transform our industry Note: N=437 global networking executives. Percentages may not total 100%, due to a small number who reported “Don’t know.” Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. Fueling innovation that drive to innovate is motivating Advanced networking is becoming an them to adopt next-gen networking. essential part of organizations’ innovation In fact, the desire to take advantage of architecture. Rather than merely new technologies, such as AI, big data representing the latest-and-greatest analytics, and edge computing is a top improvements in wireless technologies, driver for advanced wireless adoption, next-gen connectivity is becoming an tied with improving efficiency (figure integral part of how companies are 13). Enhancing customer interactions innovating and transforming—changing rounds out the top three sought-after how they operate, develop new products benefits. It’s worth noting that, in our and business models, and engage with early 2020 study, improving efficiency customers. Indeed, three-quarters of was solidly in the top spot, while taking networking decision-makers believe advantage of new technologies placed their organization can create significant third. The latter has now risen to first competitive advantage by leveraging place. Another innovation activity— advanced networking technologies and creating new business models—has four in five believe advanced connectivity also moved up several rungs. Leaders will be critically important for enhancing cited improved performance and customer interactions within three years. operational characteristics of advanced wireless—such as faster data speeds, A majority of survey respondents improved coverage, lower latency, (56%) see their company’s current enhanced security, better reliability, and networking infrastructure as preventing interoperability—as important attributes them from addressing the innovative for achieving the benefits of advanced use cases they want to target—and wireless. 20
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Figure 13: Motivations for adopting advanced wireless include innovating, improving operations and products, and enhancing interactions with customers and employees Percent ranking each a top-three benefit their organization is aiming to achieve with advanced wireless Taking advantage of new technologies 38% Improved efficiencies 38% Improved customer 32% interactions Improved security 28% New business models 27% Better products/services 26% Creation of new 25% products/services Better decisions 24% Reduced costs 23% Enhanced employee experience 19% Innovating Improving Enhancing interactions Note: N=437 global networking executives. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. Taking a closer look at countries, the emphasis on certain objectives outside top three overall motivators—taking these three—for example, new business advantage of new technologies, models (Japan, Netherlands, Portugal), improving efficiency, and improving better products/services (Germany, customer interactions—generally Portugal), creation of new products/ resonate in most geographies (figure services (China, Australia), and reduced 14). However, some countries place high costs (Brazil). 21
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Figure 14: Some countries have top objectives outside the overall most popular, such as “reduced costs” in Brazil, “new business models” in Portugal, Japan, and the Netherlands Percent ranking each a top-three benefit their organization is aiming to achieve with advanced wireless Netherlands Germany Kingdom Australia Portugal United Japan China Brazil India All Taking advantage 38% 43% 31% 44% 22% 59% 35% 40% 21% 43% of new technologies Improved 38% 39% 37% 42% 44% 35% 35% 28% 24% 52% efficiencies Improved customer 32% 39% 31% 18% 30% 51% 22% 22% 45% 37% interactions Improved security 28% 27% 31% 24% 36% 33% 25% 14% 28% 33% New business 27% 24% 24% 28% 20% 18% 31% 34% 52% 22% models Better 26% 20% 16% 34% 32% 25% 27% 26% 34% 20% products/services Creation of new 25% 37% 25% 48% 20% 18% 12% 22% 17% 22% products/services Better decisions 24% 22% 22% 24% 26% 20% 31% 20% 34% 24% Reduced costs 23% 22% 39% 20% 28% 22% 16% 30% 14% 11% Enhanced employee 19% 24% 20% 6% 16% 20% 20% 32% 10% 24% experience #1 objective #2 objective #3 objective Note: Networking executives based in Australia (N=51), Brazil (N=51) , China (N=50), Germany (N=50), India (N=51), Japan (N=51), Netherlands (N=50), Portugal (N=29), and United Kingdom (N=54). Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 22
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Advanced networking at the core More than ever, these technologies are Networking executives resoundingly view intertwined and converging in enterprise advanced wireless as integral to their innovation initiatives (see sidebar, efforts to deploy innovative technologies “Innovating globally with advanced at the heart of their digital transformation connectivity”). With advanced networking efforts, including big data analytics, cloud becoming intrinsic, how organizations computing, edge computing, AI, and IoT. adopt and architect their advanced Remarkably, 99% of our respondents wireless solutions is no longer a separate said their companies are pursuing each decision from how they implement of these technologies in the coming other innovative technologies: Leaders year, despite it not being a requirement should increasingly consider advanced for survey participation. Four in five networking a key component of an networking executives consider advanced organization’s end-to-end enterprise wireless very/extremely important to architecture. their organization’s ability to implement IoT, big data analytics, AI, and edge computing—and even more say the same for cloud computing (figure 15). Figure 15: Executives see advanced wireless networks (including 5G and Wi-Fi 6) as foundational to taking advantage of other advanced technologies Importance of advanced wireless to company’s ability to implement each technology Edge computing 43% 36% AI 32% 48% Big data analytics 36% 46% IoT 39% 43% Cloud computing 31% 58% Very important Extremely important Note: N=437 global networking executives. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 23
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Innovating globally with advanced connectivity Private 5G networks enable smart factories. Germany’s telecommunications regulator awarded licenses for deploying “private 5G” networks, which are initially expected to support industrial IoT.31 The characteristics offered by 5G—ultrahigh reliability, submillisecond latency, availability, and high security—are seen as a good fit for critical industrial applications that require real-time control, such as robot and machine mobility and industrial automation. Industrial conglomerate Robert Bosch GmbH, together with Nokia, has rolled out a private 5G network at its lead plant for Industry 4.0 in Germany—a step toward its vision of a highly efficient “factory of the future.” 32 The factory has an automated transport system consisting of 5G-connected automated guided vehicles that are able to move and deliver loads throughout the facility while safely avoiding other vehicles, objects, and people. Bosch Rexroth AG—a Bavaria-based division focused on manufacturing equipment—has outfitted a production floor with a private 5G network that connects machines, robots, and precision power tools.33 The network, along with predictive analytics and AI, allows the company to coordinate and optimize production operations. Next-gen connectivity powers immersive experiences. The Olympics has long been a place to showcase innovative technologies, and the 2021 summer games planned for Tokyo34 promise to carry on that tradition. Intel expects to run a VR experience over a 5G network at the games: A multitude of cameras installed around an arena will collect live video, and viewers around the world with VR headsets will be able to look around the venues and experience the sporting events as if they’re right next to the athletes.35 Nippon Telegraph and Telephone Corp. is piloting a hologram system that captures ultrahigh-definition 8K video of athletes and creates holograms that mirror their moves; the speed and low latency of 5G networks can enable spectators in other locations to watch the holograms in real time. In Brazil, a partnership between Claro and Ericsson has already demonstrated the use of 5G technology for a real-time holographic experience: In October 2019, a musician played at the Claro Brasil offices, and the audience in a 5G-connected stadium 17km away was able to experience his performance as a hologram.36 High-definition video was also set up between the orchestra and its conductor, and attendees with 5G-equipped VR devices were able to watch the real-time movements of the musicians as an immersive experience. IoT, AI, and 5G meet at the intelligent edge for automated inspections. Haier, a global household appliance manufacturer headquartered in China, has developed a system to automatically inspect new stainless steel refrigerators in a production line, using high-definition, 5G-connected industrial cameras, edge computing servers equipped with machine-vision image-processing capabilities, and offsite servers performing AI-based training.37 Conventional production involved time-consuming manual inspection of new refrigerators for scratches, dents, or other imperfections. In the new solution, cameras along the production line capture real-time video of each appliance and send it via 5G to an edge computing platform. On the edge server, machine-vision algorithms perform near- real-time image analysis to detect defects—and the results are used to increase the accuracy of the AI model over time. The system has improved both production performance and product quality monitoring. 24
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 India perspective Advent of digital disruptors that are transforming organizations India is leading along Transformation through digital disruptors such as Cloud, block-chain, with the United AI, and advanced analytics are driving demand and deployment of new Kingdom and Brazil services. While building cross-sector use cases, the programs executing to be most optimistic these transformations are expected to focus on employees, customers, and in leveraging machine-centric networking. Based on various combinations of next-generation next-generation platforms and solutions, potential business value is expected to maximize technologies to through technology conquests and converging industries. To realize such implement emerging opportunities presented by evolving business models, a strong collaboration services between industry verticals, application providers, and connectivity providers is a necessity. In view of the aforesaid, networking executives expect advanced wireless technologies to transform both their enterprise and industries in the near future. Figure 16: 88% Indian executives believe that advanced wireless services will substantially transform their organization within three years 80.0% 74.5% 70.0% 60.0% 52.9% 50.0% 40.0% 30.0% 29.4% 20.0% 13.7% 10.0% 9.8% 3.9% 2.0% 0.0% 0.0% Less than 1 year In 1-3 years In 3-5 years Beyond 5 years May never have a substantial transformative impact Advance wireless networking will tranform our industry Advance wireless networking will tranform our company Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 25
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Enterprises are targeting a wide range interactive digital whiteboards, whereas, of usage scenarios to fuel innovation Wi-Fi 6 can replace wired connections Overall, Indian organizations are for desktop phones and LANs for fixed expecting to witness the benefits of wireless broadband access. these technologies for themselves sooner than industry-wide change. With Advance networking is also expected approximately 94% average executives to enable new applications for machine now realizing the importance of Big Data, connectivity, which will further improve Cloud, AI, edge computing and IoT in remote asset monitoring, while building their organization, India along with the intelligent vehicular, factory, or retail United Kingdom and Brazil are the most networks for high safety and productivity optimistic in gauging and implementing standard compliance. With regards to such technologies in their organizations. customer networking, next-generation To deliver customer and machine-centric wireless technologies may improve upon services and to all employees, advanced Quality of Experience (QoE) with reliable wireless technologies are expected data across enterprise customers in to have characteristics of ubiquitous health care (remote patient consultations, availability, increased reliability, and diagnostics, and monitoring); network higher throughput, which can be further edge -computing enabled digital services; harvested through various innovative deep insights; and forecasting across use cases for a connected ecosystem. enterprise functions through advance A majority of Indian executives rate analytics, etc. performance efficiencies such as data speed and coverage higher than device density, followed by latency and location accuracy. Two-third A successful use-case implementation organizations in would require multiple trials with relevant technology solutions across enterprises. India believe that Indian enterprises expect to target use cases with a blend of indoor and outdoor existing networking scenarios on top of fixed and mobile networks. When it comes to employee infrastructure is connectivity, both inside and outside the office, top cases may involve enhancing preventing them workplace communication along IT administration. 5G services may provide from innovation: high-speed mobility access to improve collaboration and productivity through The highest among high-resolution virtual conferences and global peers 26
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Figure 17: Indian businesses along with a majority of global peers believe that workplace communication, advanced customer experience, and enhanced remote working capabilities are key for employee, customer, and machine centric-use cases Employee networking Customer networking Machine networking u c ti v i t y u c ti v i t y u c ti v i t y Prod Prod Prod r IT a me com E ng com tio n d to ki it y it y it y commun ace a ce nh unication r exper cus m M nication Wo m m tional stabil tional stabil tional stabil pl ic ini an i en 2M u Advance Work irations irations irations s Remote ced tration Top three Top three Top three priorities priorities priorities for India for India for India A sp A sp A sp era era era N e t w or k Advance Advance Op Op Op ma nagement a na l y t i c s a na l y t i c s Other use cases in India: Ranked from highest to lowest priority • Advance collaboration • Digital payments • Automation High tools High High • Security and fraud • Asset tracking • Advanced usage prevention • Machine installations analytics • Automation and repairs • Employee training • Asset tracking • Predictive maintenance • Automation • On-demand, real-time • Worker or physician • Field force data access training Low Low Low • Asset tracking • Mobility • Wearable technology communication Global perspective Global peers rank workplace Organizations around the Each geography has a unique set communication, IT world are preferring advanced of machine networking use cases administration, and advanced customer experiences, security/ that it is more inclined to pursue collaboration as their top use fraud prevention, and advanced cases analytics as their top use cases Source: Deloitte Analysis 27
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 After Japan and of the 3.5 GHz range) for local enterprises so they can build their own private 5G United Kingdom, networks. In this regard, after Japan and the United Kingdom, India is observed India is least to have the least inclination towards private 5G and is most likely to go for a inclined towards combination of both public and private 5G slice. Additionally, Indian executives private 5G and is expect to ride on telco-enabled 5G slices to cater to their use case scenarios on most likely to go the belief that utilizing services through a wireless provider is preferable to acquiring for a combination spectrum directly from a government/ regulatory body or gaining exclusive rights of both public and on a dedicated or shared spectrum. private 5G slice However, a majority of executives feel existing cyber-security apparatus and concerns around service reliability and quality are inhibitors to be addressed To address the need for an advance in public 5G service adoption. With wireless network, global operators are technological changes redefining business targeting and allocating all types of and operating models, it has now become spectrum, comprising licensed (shared or imperative for enterprises to capture the exclusive) and unlicensed. The aforesaid upside of this disruption and mitigate spectrum categories are expected to bottlenecks to continuously focus on offer industries with options to proliferate enhancing digital infrastructure. Adopting through private and public 5G and Wi-Fi key lessons from global practices is networks. Further, advanced 5G features imperative to propel Indian enterprises such as public and private network slicing, towards spearheading infrastructure along with a multi-access edge computing for an adaptable, assured, and agnostic service is expected to support the needs model of connectivity. of industry-vertical sectors. Network slicing shall bring precisely tailored services per the needs of an organization, in terms of required service quality, Two-third speed, security, latency, etc. Moreover, edge computing is expected to bring organizations in compute capabilities closer to enterprise end-users, which can enable low latencies India believe that and customized local services. existing networking Globally, regulators have been making spectrum available for 5G in conventional infrastructure is ways (for instance, auctions with exclusive rights). However, some regulators have preventing them also set-aside a portion of spectrum in priority 5G bands (for example, a portion from innovation 28
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 How adoption of advanced wireless is unfolding Organizations are approaching advanced When it comes to influencing an wireless adoption as a strategic organization’s decisions around advanced technology initiative, led by technologists wireless, IT staff and technology vendors both inside and outside the enterprise. hold the most sway, followed by wireless The IT function—both C-level executives carriers and the company’s executives and practitioners—leads the charge (figure 19). to adopt, followed by C-level business executives (figure 18). 29
Accelerating enterprise innovation and transformation with 5G and Wi-Fi 6 Figure 18: Within organizations, IT executives and practitioners lead the charge to adopt advanced wireless Percent ranking each a top-three role leading the charge for adopting advanced wireless at their organization CIO/CTO 63% IT managers 47% CEO/President 39% IT executives below C-level 36% Other C-level executives 26% Corporate board 22% Business managers 19% Business executives below C-level 17% Note: N=437 global networking executives. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. Figure 19: IT staff and technology vendors have the most influence on organizations’ advanced wireless choices. Percent ranking each a top-three influencer guiding their organization’s advanced wireless choices Our IT staff 51% Technology vendors 41% Telecom/wireless carriers 33% Our executives 32% Our clients/customers 25% Our business staff (e.g., product development) 24% Telecom analysts/consultants 22% Competitor actions 19% Standards bodies 13% Trade publications 8% Note: N=437 global networking executives. Source: Deloitte’s Study of Advanced Wireless Adoption, Global Edition, 2021. 30
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