White Paper on the Commercial Application Scenarios of Gigabit Broadband Networks 2 Contents 1 Gigabit Broadband Era . 1 2 Ten Commercial Application Scenarios of Gigabit Broadband Networks . 3 2.1 Overview . 3 2.2 Cloud VR . 4 2.2.1 Market Space . 5 2.2.2 Business Model and Practice . 5 2.2.3 Network Requirement . 7 2.3 Smart Home . 8 2.3.1 Market Space . 8 2.3.2 Business Model and Practice . 9 2.3.3 Network Requirement . 9 2.4 Gaming . 10 2.4.1 Market Space . 10 2.4.2 Business Model and Practice . 11 2.4.3 Network Requirement . 12 2.5 Social Networking . 13 2.5.1 Market Space . 14 2.5.2 Business Model and Practice . 14 2.5.3 Network Requirement . 15 2.6 Cloud Desktop . 16 2.6.1 Market Space . 16 2.6.2 Business Model and Practice . 17 2.6.3 Network Requirement . 18 2.7 Safe City . 19 2.7.1 Market Space . 19 2.7.2 Business Model and Practice . 20 2.7.3 Network Requirement . 20 2.8 Enterprise Cloudification . 21 2.8.1 Market Space . 22 2.8.2 Business Model and Practice . 22 2.8.3 Network Requirement . 23 2.9 Online Education . 24 Broadband Development AllianceWhite Paper on the Commercial Application Scenarios of Gigabit Broadband Networks 3 2.9.1 Market Space . 24 2.9.2 Business Model and Practice . 25 2.9.3 Network Requirement . 25 2.10 Telemedicine . 26 2.10.1 Market Space . 27 2.10.2 Business Model and Practice . 27 2.10.3 Network Requirement . 28 2.11 Smart Manufacturing . 29 2.11.1 Market Space . 29 2.11.2 Business Model and Practice . 30 2.11.3 Network Requirement . 30 3 Conclusion and Outlook. 32 3.1 Promotion in Economic and Social Development . 32 3.2 Timeline for the Deployment of 10 Commercial Application Scenarios . 34 3.3 Business Model of Gigabit Broadband Networks . 35 3.4 Future Prospect of Gigabit Broadband Networks . 35 A Acronyms and Abbreviations . 37 Broadband Development AllianceWhite Paper on the Commercial Application Scenarios of Gigabit Broadband Networks Page 1 of 37 1 Gigabit Broadband Era At present, the world economy is going digital. ICT has become a common choice for policy makers to realize sustainable development and enhance national strength. Technologies enabling ICT investment and deployment include broadband, data center, cloud, big data, Internet of Things (IoT), and artificial intelligence (AI). The amount of digital economy is expected to reach USD 23 trillion in 2025. The blossoming of digital economy makes the support capability of broadband networks increasingly prominent. Broadband has become an indispensable strategic infrastructure for economic and social development. In recent years, great achievements have been made in the construction of broadband networks in China, and FTTH networks have covered the whole country. By 2019 Q1, the proportion of users with a 100M+ access rate in China reached 73.3%. The access rate of fixed broadband was estimated at about 120.2 Mbps. Fiber broadband users accounted for 91.6% of all broadband users. With the development of fiber broadband access technologies and the gradual application of bandwidth-hungry services such as HD video, smart home, and cloud VR, Gigabit broadband will become the focus of global broadband development. According to the latest statistics from OVUM, 234 operators in 57 countries have released Gigabit broadband construction plans to facilitate social and economic digital transformation. Government Policy Promotes Gigabit Broadband Development Many governments have formulated relevant strategies or policies to encourage the development of Gigabit networks. According to the government work report in 2019, China will launch demo projects to extended 1000M broadband connectivity to urban homes and upgrade networks to support distance education and telemedicine to provide faster and more reliable broadband connections for Internet users. At their executive meeting on May 15, 2019, the State Council expressed their resolve to further accelerate broadband rates and reduce prices. “Accelerating network upgrade and expansion should be a vital focus of investment. The goal is to achieve over 90% FTTH access ports in 2019. In more than 300 cities, Gigabitaccess networks should be deployed to drive fixed and mobile broadband access into the gigabit era.“ Mature High-Broadband Services Accelerate the Commercial Use of Gigabit Services Video content services represented by 4K, 8K, AR, and VR have blossomed. In China, the 4K content duration has exceeded 10,000 hours, and the penetration rate of new 4K TV has exceeded 70%. The number of global mainstream VR platforms applications has exceeded 6000. Cloud VR has a complete E2E ecosystem built in the industry and large-scale deployment conditions are met. The mature application of high-broadband services is driving the commercial use of Gigabit broadband in China. Broadband Development AllianceWhite Paper on the Commercial Application Scenarios of Gigabit Broadband Networks Page 2 of 37 Since 2018, China's big three telecom operators are proactively promoting gigabit network deployment and exploring gigabit application innovations. By the end of May, 2019, operators in nearly 20 provinces in China released 1000M commercial packages and worked with industry partners to carry out a large number of service innovations based on Gigabit broadband. For example, the smart broadband launched by China Telecom provides products, applications, and services of smart connection, smart TV, smart networking, smart application, and smart service. The intelligent broadband launched by China Unicom provides smart TV, smart home, WO fixed-line phone, and WO home surveillance. Mature Technology Industry Drives Commercial Applications Looking back at the development of the fixed communications field in China, the field enters the gigabit access era based on the 10G PON fiber access technology from the voice era based on copper access technology. Driven by the “service innovation + technology development“, all things will be sensing, connected, and intelligent. Figure 1-1 Development history of fixed broadband The 10G PON access technology and related industries are mature. International standard organizations IEEE and ITU-T take the lead in developing and releasing relevant technical standards. In terms of key components, mainstream vendors' 10G PON core processing chips and optical modules are ready for batch production and large-scale delivery, which meets operator requirements for large-scale deployment, broadband acceleration, and price reduction. Compared with the previous generations of fixed access technologies, 10G PON gigabit broadband is a great leap forward in terms of bandwidth, user experience, and connection capacity. It delivers symmetric upstream and downstream rates as high as 10 Gbps and a latency as low as 100 us. These changes will drive the fiber network to break through the traditional industrial edge and connect everything including every room in a home, every office building, and every industrial device, and will promote social development in an unprecedented way. Broadband Development Alliance Page 3 of 37 2 Ten Commercial Application Scenarios of Gigabit Broadband Networks 2.1 Overview The coverage of Gigabit broadband networks pushes the convergence of upstream and downstream industries to release the huge potential of the industries, thus affecting the economic development and changing the way people produce and live. It is believed that as commercial scenarios, industry ecosystems, and Gigabit broadband networks are ready, Gigabit broadband networks will bring about profound changes at the access network level, creating more commercial application scenarios and a new era full of opportunities. This white paper introduces 10 commercial application scenarios of gigabit fixed broadband networks, including cloud VR, smart home, gaming, social networking, cloud desktop, safe city, enterprise cloudification, online education, telemedicine, and smart manufacturing. These scenarios have high requirements on network bandwidth. Because the industry ecosystems and commercial applications are nearly mature, these scenarios will become key service applications in the Gigabit broadband era and lay a foundati