From factories to cities, 5G will change the world
Telcos, car makers, health workers and local authorities alike will have new capabilities as a result of 5G, ARTHUR GOLDSTUCK learns from Fadi Pharaon, president of Ericsson MEA
With 5G technology still in its infancy, little is understood about
its potential impact on society – especially across the African
continent. We were startled to learn recently, for example, that
Ericsson and Audi were collaborating on human-robot interaction using 5G
connectivity. And that has a knock-on effect in sectors that are highly
relevant in this region, such as mining and manufacturing.
That was the starting point for a wide-ranging interview with Ericsson Middle East & Africa president Fadi Pharaon, who helped us unpack the future of 5G in Africa.
Fadi Pharaon, Head of Market Area at Ericsson Middle East & Africa
Arthur Goldstuck: Ericsson and Audi are
looking at human-robot interaction, with one of the first use cases of an
automation application connected via 5G, focused on personal safety. That is
not a traditional role of telcos, but it seems to be an increasing one. How
will such strategies play out in Africa, in terms of areas like personal
safety?
Fadi Pharaon: Ericsson and Audi are stepping up their
5G collaboration by testing Ultra-Reliable Low-Latency Communication (URLLC)
capabilities for factory automation. Smart factories of the future with
automated production systems featuring robots and Automated Guided Vehicles
(AGVs) will be driven in large part by 5G connectivity.
As we continue to test the possibilities offered by 5G technology for industrial applications in the smart factory, 5G connects all the dots in our production environment, resulting in tremendous flexibility improvements, enhanced connectivity and a complete reimagining of what safe human-robot collaboration can look like.
Our collaboration with Audi is the perfect
demonstration of how Ericsson is using the 5G technology to reinvent industrial
safety and productivity today.
From an Africa perspective, we believe
that such advanced technologies can in the future offer the telcos
opportunities for new revenue streams by addressing industrial applications. For
instance, in mission critical industries such as mining, remote-control
machinery via 5G can be a great solution to ensure efficiency as well as health
and safety of workers in that field.
AG: Are smart cities solutions viable in
South Africa, and to what extent do Ericsson services support these?
FP: It has been proven that Information and Communications
Technology (ICT) maturity strongly correlates to both productivity and economic
competitiveness of a city. Transformation to a smart sustainable city requires
a holistic approach that encompasses long-term planning, partnership and
engagement.
As 4G, 5G, Internet of Things (IoT) and
big data technologies become widespread in South Africa, the potential for ICT
to solve the problems of cities will grow immensely. We are happy to see the
development of ICT as a key element in urban infrastructure, just as important
as roads, buildings and other physical infrastructure.
Ericsson plays a key role in smart cities
by offering cutting-edge solutions to enable building a real smart city. Here
are few examples:
IOT accelerator: a robust solution
built to connect and manage billions of devices and millions of applications
easily, seamlessly and globally
Connected Vehicle Cloud: which enables vehicles to be connected to a private cloud allowing
control of multiple IOT use cases on it like fleet management, entertainment
streaming and live road updates.
AG: What is Ericsson’s response to the
crisis of COVID-19 and how can Information and Communication Technologies (ICT)
play a role during these times?
FP: Ericsson is closely monitoring the
development around the novel coronavirus and follows recommendations from
relevant national authorities and international bodies, such as the World
Health Organisation (WHO). The responsibility for the health and safety of
employees, customers and other stakeholders is the company’s top priority.
This is a challenging situation and as a
global company with around 100,000 employees and presence in 180 countries, we
are aware of our responsibilities towards the communities where we operate.
Ericsson is taking precautionary measures to ensure the health and safety of
employees, to minimise the impact on the company’s operations and to prevent
further spreading of the novel coronavirus.
As the world faces an unprecedented crisis
in the form of Coronavirus COVID-19, ICT is playing a critical role in bringing
people together while social distancing is being practiced across the world.
More than ever, telecommunication including mobile networks enables families,
health workers, public safety officials, education institutions and critical
businesses to stay connected during this global crisis.
Our role through these challenging times
is to ensure business continuity towards our customer operators so that the
mobile networks many businesses and individuals depend on keep operating in a
reliable and performing manner.
AG: What impact will emerging technologies
such as IoT have on our society at large including communications service
providers, industries and enterprises?
FP: The IoT market is rapidly growing and
this indicates a substantial business potential for communications service
providers, industries and enterprises. In Ericsson’s Mobility Report November
2019, it is forecasted that there will be 5 billion Cellular IoT connections by
the year 2025. The globally estimated revenue from the IoT and 5G industry
digitalisation is USD 700 billion by 2030.
Ericsson’s Cellular IoT solution addresses
diverse use cases ranging from the more basic use cases such as asset tracking and
smart metering to more advanced use cases, such as drones, AR/VR, to even
higher demanding critical use cases like autonomous vehicles and collaborative
robotics.
AG: Much has been said about the potential
of fintech to change peoples’ lives. Please tell us about Ericsson’s efforts in
this space in Africa and beyond?
FP: When it comes to financial services, it
is a fact that a large portion of the Sub-Saharan population lives without
access to financial services. These “unbanked” societies are forced to use cash
and risk missing out on participating in the digital economy. According to a
recent study by GSMA, Mobile money
is central to the mobile industry’s contribution to 15 of 17 Sustainable
Development Goals.
We take a lot of pride in seeing our
Ericsson’s mobile money services introduced by our customer operators to
several African communities addressing the challenges faced by unbanked
communities. We believe that easy access to Mobile Money can make a tangible
difference in the lives of unbanked communities. We will continue our focused
growth of mobile financial services so that our service provider partners reach
out to more communities across Africa.
We also see the potential of financial
technology or “fintech” to improve disaster relief and humanitarian aid. Ericsson
launched a few years ago the Ericsson Emergency Wallet, which builds on
our Technology
for Good and Ericsson
Response initiatives as well as our long experience of developing scalable
mobile financial service solutions. The Ericsson Emergency wallet is a mobile
financial services solution for deployment in the immediate aftermath of
disaster or crises to support humanitarian aid and affected populations. It
enables the distribution and use of digital funds by relief workers and
impacted populations, thus addressing issues such as safety, expense and
traceability typically associated with cash.
All these examples are clear testimonies
on the importance of “fintech” in changing peoples’ lives.