The new era of mobile networks and its impact on gamingForeword 031. Evolution of the Gs 042. New Era of Networks 123. How 5G Ready Are We? 204. New Gaming Experiences 27© Newzoo 2020Foreword3TIANYI GUMarket AnalystThe fifth generation of mobile networks5Gis undeniablyone of the most exciting developments in mobiletechnology, offering users far faster speeds and morereliable connections than current options.The 5G standard was first issued by ITU-R in 2015 andfinished with new standalone specification in early 2018.After years of planning, 5G became a reality for consumersin 2019 with South Koreas three telecom companiesSKTelecom, LG Uplus, and KTrolling out the worlds firstcommercial 5G networks in early April. Many countriesincluding the U.S., the U.K., and China followed suit. By theend of 2019, there were more than 20 countries in theworld that had already laid down infrastructure for 5G (withcommercial networks). Still, coverage is mostly limited to aselect few cities or even specific neighborhoods. Eventhough the 5G rollout is still in the early stages, consumersare already eager to try out the latest mobile technology.On the hardware front, leading mobile brands like Samsung,Huawei, Xiaomi, Vivo, and OPPO have already launchedtheir first 5G models and are all set to introduce a full lineupof 5G devices in 2020. Apple is also rumored to launch a 5GiPhone in 2020.Despite all the latest developments, 5G is still in its infancy.Drawbacks such as mmWaves short range are challengingengineers to construct an uninterrupted service. 5G mustalso provide a compelling use case.While it might be too big a claim to say that 2020 will be“the year of 5G”, it certainly marks the beginning of themarkets transition toward the technology. In this report,we take a look at the history and current state of mobilenetworks, identify key players in the development of 5G,predict the growth in the 5G smartphone market, and divedeep into 5Gs impact on gaming and beyond.Peak data rate that 5G is targeting to reach. Development of mobile networksEVOLUTION OF THE GS1© Newzoo 2020A brief history of mobile 2G network development1990 1995 TODAY1991Radiolinja launched the first 2G network on the GSM (Global System for Mobile Communications) in Finland. 2Gs major improvement over the previous generation of 1G cellular networks is that radio signals used by 2G networks are digitalrather than analog.1992Short Message Service (SMS) was introduced to the public.1995GPRS (General Packet Radio Service), also known as 2.5G, which supports packet switching, was introduced. GPRS could theoretically reach downlink speeds of up to 171Kbps.1997EDGE (Enhanced Data Rates for GSM Evolution), also known as 2.75G,was introduced. Data speeds were increased up to 384Kbps, marking EDGE as an early preview of 3G.Many mobile carriers across countries such as the U.S., South Korea, and Japan have already or will shut down 2G networks in the future to develop newer technologies.SMS text messages, which later developed into new forms like picture messages and multi-media messages.Conversations are digitally encrypted.Roaming supported.E-mails.Web browsing.The iconic phone of the 2G era: Nokia 3210, launched in 1999.The first camera phone: Sharp J-Phone, launched in 2000.12345BREAKTHROUGH IN MOBILE DEVICE DEVELOPMENTMAJOR INNOVATIONS ENABLED BY 2G THAT REVOLUTIONIZED THE MOBILE WORLD5© Newzoo 2020A brief history of mobile 3G network development2000 2005 TODAY2001NTT DOCOMO in Japan launched the first commercial W-CDMA 3G mobile network. Data speeds could reachup to 2Mbps for stationary or walking users, or 384Kbps for users in a moving vehicle.20023G networks were consecutively set up in mature markets,including the U.K., the U.S., and South Korea.2009The launch of iPhone 3GS helped enable various forms of entertainment on the mobile screen. 3G is still the mainstream mobile telecommunications technology around the world. According to Ericsson, by the end of 2018, approximately 95% of the global population lived in areas coved by 3G mobile cellular networks.New generation of smartphones.Large adoption of mobile Internet.Web-based applications and audio and video files.Mobile gaming.Video calls.The revolutionary phone of the 3G era: iPhone 3GS, launched in 2009.12345BREAKTHROUGH IN MOBILE DEVICE DEVELOPMENTMAJOR INNOVATIONS ENABLED BY 3G THAT REVOLUTIONIZED THE MOBILE WORLD2008Apple announced its first 3G smartphone iPhone 3G in June. Two months later, the first Android phone T-Mobile G1 (manufactured by HTC) was released. Samsungs first high-end smartphone Samsung Galaxy S, launched in 2010.6© Newzoo 2020TODAY4G is still the predominant cellular network today. According to Ericsson, by the end of 2018, around 75% of the global population lived in areas coved by LTE networks. According to GSMA, in 2018, mobile technologies (dominated by 4G) and mobile services generated $3.9 trillion of economic value (4.6% of GDP) globally.A brief history of mobile 4G network development2009 2010TeliaSonera from Sweden launched the worlds firstcommercial LTE mobile services in Stockholm and Oslo. It was debatable, however, whether or not the network qualified as 4G LTE, as the data speeds (100Mbps) did not comply with ITU-Rs requirement of 1Gbps. ITU-R recognized LTE-Advanced, WirelessMAN-Advanced, LTE, and WiMax as 4G. These technologies provided substantial performance and feature improvements over previous generations. The improvements mainly resulted from 4Gs switch to all-Internet Protocol (IP) based communication, which allows mobile ultra-broadband (gigabit speed).2012YOTA from Russia announced the worlds first commercial LTE-Advanced (LTE-A) network; yet, the terminals were not available until one year later. Data speeds went up to 300Mbps. However, the first LTE-A compliant smartphoneSamsung Galaxy S4 LTE-Awas only introduced to the market in 2013. 4G LTEs high bandwidth enables multimedia entertainment on the mobile screen. For example, photos no longer needed to be compressed on social media. High data speeds maximize the potential for photo and video sharing, which fulfills the optimal nature of social networks. Music and video streaming allows consumers to access content on-the-go. Real-time mobile services flourish on mobile, enabled by 4G.Social network.Music streaming.Video streaming.Mobile services.4GS KILLER APPS12347© Newzoo 20204Gs killer apps remain the most popular apps on mobile 4G-COMPATIBLE SMARTPHONES June 2016 December 2019 | Globalof all active smartphones in December 2019 were 4G-compatible.67.6%92.4%Jun2016Dec2016Jun2017Dec2017Jun2018Dec 2018Jun2019Dec2019Source: ©Newzoo | Global Smartphone and Tablet Tracker | ©Priori Data 8MUSIC-STREAMING1.0Bn+downloads on iOS & Google Play since 2015. VIDEO-STREAMING1.2Bn+downloads on iOS & Google Play since 2015. SOCIAL NETWORK2.7Bn+downloads on iOS & Google Play since 2015. 4.7Bn+downloads on iOS & Google Play since 2015. MOBILE SERVICE0.8Bn+downloads on iOS & Google Play since 2015. 0.2Bn+downloads on iOS & Google Play since 2015. © Newzoo 2020© Newzoo 2020Low latency and high data speeds are key improvements, but they are not the only ones10Source: ©International Telecommunication Union<1msLATENCY20GbpsPEAK DATA RATE10Mbps/m²AREA TRAFFIC CAPACITY1M connections/km²CONNECTION DENSITY100MbpsUSER EXPERIENCED DATA RATE500km/hMOBILITY10msLATENCY1GbpsPEAK DATA RATE0.1Mbps/m²AREA TRAFFIC CAPACITY100K connections/km²CONNECTION DENSITY10MbpsUSER EXPERIENCED DATA RATE350km/hMOBILITY3XSPECTRAL EFFICIENCY100XENERGY EFFICIENCY1XSPECTRAL EFFICIENCY1XENERGY EFFICIENCY