Use Cases
Middle East: Leading the 5.5G Era and Striding Towards an Intelligent World
The advancements in 5G and 5.5G that carriers have made in the Middle East's Gulf Cooperation Council (GCC) countries have set new benchmarks in scenario-based technology verification and growth opportunities, setting the stage for region-wide digital and intelligent upgrades.
By Tang Zhentian, President of ICT Marketing & Solution Sales Dept, Huawei Middle East & Central Asia
The Middle East has always played a unique role in history as a place of connections, bridging great geographic, economic, and cultural divides.
During the Middle Ages, Arab merchants used camels and ships to traverse the Silk Road, bringing silk and porcelain from China to India and the Malay Islands, where they would pick up spices, minerals, and cane sugar to trade for gemstones in Central Asia and ivory and gold sand from East Africa. Their powerful networks then went on to connect Northern Europe with honey, fur, and wood. This mercantile influence spanned the world and they played an important role in the Arab Empire's prosperity, in turn influencing the world's economy, science, technology, culture, and art.
Today, the six nations of the Gulf Cooperation Council (GCC) are returning to this model through economic restructuring. Digital and intelligent transformation are presenting the perfect opportunity to reduce their economic reliance on oil. The United Arab Emirates and Saudi Arabia, for example, have set in motion plans to become digital hubs for their surrounding regions. Multinational carriers in the region, like stc, e&, and Zain have jumped at the chance to become the new merchants of the digital era by supporting digital upgrades across the Middle East and Africa, and developing new strategies for cloud, DCs, and toB integration.
All have turned their attention towards building world-class ICT infrastructure.
The first year of commercial 5.5G in the Middle East
During the 2023 Global Mobile Broadband Forum (MBBF), six Middle Eastern carriers kicked off the region's commercial launch of 5.5G . Shortly after, those same carriers successfully completed 10-Gbps testing and more than 20 scenario-specific pilots of 5.5G technologies like RedCap, Passive IoT, and glasses-free 3D.
Exploring new 5.5G services for sustained 5G business success
So far, these carriers have been pragmatic in their approach to 5.5G. Their existing success in 5G has been the core driver of their continued investment.
By the end of 2023, 5G had a user penetration rate of over 40%, and over 40% of mobile data traffic came from 5G connections. Around 2018, many carriers had begun experiencing a decline in revenue as 4G reached maturity, but 5G has reversed this trend. Leading carriers have realized 20% to 45% revenue growth thanks to 5G, and FWA services are rapidly transforming the industry landscape in the Middle East.
Middle Eastern carriers are therefore eager to capitalize on 5.5G. Many have already identified a range of high-value 5.5G use cases that will help improve user experience and foster innovative new applications for individuals, homes, and industries.
Individual services: Immersive glasses-free 3D experience stimulates 10-fold traffic
Glasses-free 3D started making waves back in 2009 with the release of the sci-fi movie Avatar. Now, more than 10 years later, the core technologies behind glasses-free 3D are beginning to see large-scale commercialization as related technologies become increasingly reliable, with better experiences delivered, 3D content easier to produce, and more affordable devices available.
Shopping malls in the UAE and Oman are already using glasses-free 3D screens for advertising, searches for "glasses-free 3D" have surged over the past half year according to Google Trends, with over half of those searches being made in countries like Saudi Arabia, the UAE, and Oman. This is a prime example of how carriers are exploring new approaches to 5G monetization. One carrier found more success with 3D tablets than with glasses-free 3D phone screen protectors thanks to the better visual experience they deliver, deciding to bundle 3D tablets with FWA and phone screen protectors with toC services. These sales plans are set to launch in the near future. A second carrier plans to introduce glasses-free 3D use cases to their 5.5G Innovation Center and work with OSN (a local OTT service provider) and YouTube to build a 3D content ecosystem. A third carrier is planning to launch its own 3D livestreaming services and working with OTT service providers to establish a dedicated 3D service section and also plans to bundle 3D services into 5G subscription packages. And a fourth carrier has decided to first explore 3D screen protector services before turning to 3D content.
Many carriers are already designing premium service packages that will increase monetization and are directly working on developing a 3D content ecosystem. Many of these glasses-free 3D services are expected to launch in the first half of 2024.
Home services: Fiber-like to air-fiber FWA experiences
Another top area of focus for carriers is sustainable FWA growth.
The household penetration of FWA services in the Middle East already exceeds 21%, and the service is growing rapidly, even in markets with extensive optical deployment, such as the UAE, Qatar, and Bahrain. However, this rapid growth has created two pressing challenges for carriers. First, per-site user volume growth is increasing network congestion, which in turn harms user experience and increases complaints. This has made FWA user satisfaction a key area of concern. Second, fiber downlink rates are growing by over 40% every year. Mainstream fiber-based packages already deliver 300 Mbps to 500 Mbps rates, so, how can FWA maintain a competitive edge?
Over the past year, multiple carriers have worked with Huawei to explore these issues. What we've found is that there is still tremendous untapped potential in FWA if we upgrade offerings from unguaranteed 100-Mbps experience packages to reliable 300-Mbps experience packages. Our surveys have found that 70% of user packages can be upgraded, and 67% of users are willing to pay over 20% more for better experiences. This means that a reliable user experience is required throughout the user journey. Carriers will need to assess available network resources, coverage, and interference before high-speed FWA services can be provisioned. Provisioning will also often need higher resource scheduling priorities and higher performing CPEs. In some cases, onsite assisted installation will be needed to ensure the optimal installation position. Once services go live, carriers will need to be able to monitor user experience KPIs in real time for preventive optimization, and provide dedicated VIP service channels for consumers.
The UAE's du is an FWA pioneer. During MWC Barcelona 2024, du announced that it was ready to launch high-speed, low-latency packages for gamers and bundle more TV privileges with FWA packages [2].
FWA's potential remains huge as optical technologies evolve.
Industry services: 10 Gigabit City infrastructure facilitates industry digitalization
In 2022, Huawei signed an MoU with Saudi Arabia's Ministry of Communications and Information Technology on building a 10-Gbps Society. The country's 10 gigabit vision is now being implemented as the nation plans new urban areas. The enhanced network capabilities brought by 5G and 5.5G will enable carriers to provide ubiquitous basic connectivity while also helping them build global leadership in integrated national ICT solutions.
- A low-carbon "cognitive city": Saudi Arabia's NEOM aims to use 5G to connect people and things to build a "cognitive city". The tourism developer Red Sea Global then worked with Zain to build zero-carbon 5G networks for a massive future city project that would deploy 5G-powered IoT solutions to monitor important ecological sites, like coral reefs and sea turtle nesting sites[4]. Carriers are now verifying multi-scenario IoT applications using 5G smart lamp poles. Some of these applications include intelligent security, electronic screens, EV charging piles, environmental monitoring, and autonomous driving.
- Digital and intelligent industries: Industries are now increasingly receptive of 5G. According to a survey by the UAE government, about 40% of enterprises plan to use some form of 5G application within the next year. For example, stc Group and the Saudi Ports Authority launched the Smart Ports Initiative to automate port operations through different scenario-based applications including remote crane operation, 3D visualization of cranes, license plate recognition, and facial recognition[5]. etisalat by e& also released a 5G-Advanced white paper on multiple 5G products, including 5G mobile edge, 5G campus, and 5G networks for cars to promote the application of 5G and 5.5G in the government, transportation, healthcare, aviation, and oil and gas sectors[6].
- Digital twins: Carriers in the Middle East are also actively testing and applying 5.5G technologies such as passive IoT and RedCap. In the UAE, passive IoT's long standby times and low costs are enabling a number of smart retail applications, connecting a wide range of goods to digital twins. This has increased tracking and stock allocation efficiency. In Saudi Arabia, low-cost 5G RedCap modules are also being used to explore new CCTV and smart security applications.
Building 10G networks using leading technologies
Leading carriers in the region have already completed 5.5G target network planning.
User-perceived speeds are expected to double in the next three years, with the average 5G downlink rate expected to jump from 100 Mbps to 200 Mbps by 2026, and the user-perceived FWA rate spiking from 165 Mbps to 500 Mbps.
Once this is achieved, carriers are likely to shift their focus towards pursuing ubiquitous 10G connectivity. By 2026, peak user rates will already be at 5 Gbps with under 20 ms latency, so the next milestone will be achieving 10-Gbps user-perceived downlink and sub-10-ms latency by 2030.
A consensus has already been reached by the region's carriers that TDD 3CC aggregation (300 MHz band) will be one of the fundamental differences between 5.5G and 5G. Because of this, they are working with Huawei on joint innovation in this area. For example, the region has already taken the lead in fostering dual-band META (2.6/2.3 GHz + C-band, dual-band 3CC) products that support simplified 5.5G deployment, as well as 3CC small cell products, to improve indoor user experience. The UAE's du is also already proceeding with large-scale TDD 3CC deployment. The extremely large antenna array (ELAA) technology has increased the number of dipoles from 192 to 384, enabling a peak rate of 5 Gbps, 30% higher user-perceived rates and 30% lower energy consumption[8].
Saudi Arabia's stc is similarly deploying 4CC, which includes C-band and low and medium bands, to improve network performance and user experience, and speed up 5.5G evolution[9].
At MWC Barcelona 2024, Huawei signed three MoUs with:
- du to transform the UAE into a 5.5G country
- Kuwait's Communication and Information Technology Regulatory Authority (CITRA) to build 5.5G smart cities
- Zain KSA on "All in 5.5G".
Many carriers are working with vendors like Huawei to seek smooth 5.5G network evolution, 5G super packages (which use new services like New Calling, 3D, and MR to build the 5.5G brand), and rate-based FWA pricing evolution. These demands have become an important factor driving innovation at Huawei.
High-quality 5G construction is creating a digital oasis
More carriers and governments are pursuing digital, intelligent, and low-carbon transformation.
The GCC nations have all launched national visions that will significantly increase the prominence of their digital economies and help them become global leaders, such as Saudi Arabia's Vision 2030 and the UAE's "We the UAE 2031". These governments are encouraging 5G network deployment through policy and funding support, which is successfully driving improvements in mobile network quality. Currently, four out of the world's 10 leading countries according to Speedtest are from the Middle East. Bahrain, the UAE, Saudi Arabia, and Oman have made significant commitments to carbon neutrality. Digital and intelligent transformation are also being clearly seen in many cities and industries across the region.
At the carrier level, Middle Eastern carriers are continuing to build high-quality communications networks as they digitalize their own operations. Success in 5G has helped many of these carriers improve brand value. From 2018 to 2023, stc's brand value increased by 85%, helping them move up 19 places in global rankings and making them the 11th top global carrier. e& also moved up to 14th place. Middle Eastern carriers are pursuing industry leadership with their 5.5G evolution. 2024 will be the first year of large-scale 5.5G construction in the Middle East, with leading countries like the UAE expected to achieve nationwide 5.5G deployment.
This has made the Gulf region significantly more economically dynamic. In 2023, Dubai Chambers saw a 43% increase in the number of registered new enterprises, with the growth rate of Abu Dhabi's startup ecosystem ranking sixth globally. The UAE plans to incubate 20 unicorn companies by 2031 and Saudi Arabia saw a 33% increase in its number of startups in 2023. Saudi Arabia also led the Middle East and North Africa with a record US$1.38 billion venture capital invested last year. This has made the Gulf region one of the prime destinations for global startups[11].
5.5G will likely continue to drive growth in the Middle East's economy and society. This will trigger a chain reaction, supporting national visions like Saudi Vision 2030 and We the UAE 2031 and stimulating new digital vitality by attracting global talent and encouraging more innovation. This growing digital oasis will undoubtably create a new benchmark for the world in digital transformation.
References:
- https://www.marhaba.qa/vodafone-qatar-hosts-groundbreaking-discussion-on-5-5g-technology/
- du, Huawei sign strategic cooperation to boost 5G-A in the UAE. https://www.rcrwireless.com/20240228/5g/du-huawei-sign-strategic-cooperation-boost-5g-uae Feb 28, 2024
- Du to bolster FWA 5G play to challenge rival. https://developingtelecoms.com/telecom-business/operator-news/16333-du-to-bolster-fwa-5g-play-to-challenge-rival.html Feb 29, 2024
- An Inspiring Journey: Zain KSA and Red Sea Global Pioneering World’s First Zero-Emission 5G Network. https://www.telecomreview.com/articles/exclusive-interviews/7406-an-inspiring-journey-zain-ksa-and-red-sea-global-pioneering-world-s-first-zero-emission-5g-network Oct 09, 2023
- 5G-Advanced: The Future of Wireless Communications in the UAE. https://www.samenacouncil.org/samena_daily_news?news=94414 Mar 09, 2023
- https://www.eand.com/content/dam/eand/assets/docs/general/5G-advanced_the_future_of%20_wireless_communications_in_uae.pdf
- etisalat by e& launches white paper on UAE's transition to 5G-advanced and commitment to global standards. https://wam.ae/article/b0ys2bv-etisalat-launches-white-paper-uaes-transition Jan 03 2024
- du Spearheads Commercial Deployment of 5G-Advanced. https://www.telecomreview.com/articles/telecom-operators/7818-du-spearheads-commercial-deployment-of-5g-advanced Feb 07, 2024
- stc Achieves Substantial Progress in Advancing 5G. https://www.telecomreview.com/articles/telecom-operators/7719-stc-achieves-substantial-progress-in-advancing-5g Jan 02 2024
- du Commits to Building UAE as 5G-Advanced Country. https://www.telecomreview.com/articles/telecom-operators/7882-mwc24-du-commits-to-building-uae-as-5g-advanced-country Feb 27,2024
- Accelerating Growth: the GCC's Start-up Ecosystem. https://communicateonline.me/category/industry-insights/post-details/accelerating-growth-the-gccs-start-up-ecosystem Jan 31 2024
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