5G and the Enterprise: A Q&A with Nicolas Ehses of Swisscom
B2b startups in Europe are thriving. The rise of AI has opened new doors for innovation in the enterprise and beyond, enabling great changes in the way we conduct business. In the next few years, we’ll see the gradual rollout of another exciting innovation enabler: the 5G network. JOIN Capital caught up with Nicolas Ehses, Head of Strategy, Network, IT and Infrastructure for Swisscom, who offered his perspective on 5G and how it will give rise to another wave of transformation for enterprise startups.
Hi, Nicolas. Please introduce yourself and describe your role in technology at Swisscom.
My name is Nicolas Ehses and I’m responsible for strategy in network, IT & infrastructure at Swisscom. This also includes 5G strategy. I’m a big believer in software and connectivity. Both of these will change the way we live, and that’s what drives me.
What is your perspective on 5G?
There are two different answers. There’s the technical, textbook answer: 5G is about more bandwidth, low latency, and high reliability. Then there’s the more interesting stuff: 5G is a lot more than we can imagine today. No one knows how 5G will change our world, but it’s the foundation for innovation — just like with 2G, 3G, and 4G.
People used to tell me when 4G was coming out that no one would want to watch a movie on the train because movies last over an hour. Now, when you talk about videos, you’re not talking about 1.5-hour movies. It’s about 1-minute clips on Facebook, etc. 5G will be the basis for a lot of innovation we can’t even imagine today surrounding this media and so much more.
When will 5G launch?
There isn’t one launch point, but I’m expecting the first pilot in 2018. In 2019, we will see a couple specialized 5G applications. Verizon in the US is doing a lot with fixed wireless access at the moment. The mainstream adoption will be in 2020–2021, when 5G smartphones will be available. But this will take some time.
What do you believe will be the most important applications for 5G, specifically on the enterprise?
The easy answer is that nobody knows yet. But if I had to name some, I’d say two things for enterprise. First is augmented reality, which will be enabled by 5G. We’ll be able to provide better products and services for our customers, and our workforce will be more efficient and productive. The second is that everything will be connected. Virtually everything. Right now our physical world is basically offline. With 5G and IoT, all the physical world will connect. There’s not one single part of the value chain that won’t be transformed.
Will 5G kickstart another wave of startup-driven innovation like AI did last year?
Absolutely. 5G is an enabler. There will be innovation on top of low latency connectivity. For example, in the area of coordination of drones, cars or any vehicle, it will be coordinated based on the network. Another area would be in the space of high-bandwidth applications, which aren’t really viable today but will be enabled through 5G. As a startup, I’d focus on these two areas.
What are some of the biggest chances for B2B startups right now?
The first is 5G related: connecting real world objects. Our world is still offline; only smartphones, laptops, and tablets are connected today. In 10 years, everything will be connected. The second area is blockchain. It’s a great invention that will change how parties who don’t necessarily trust each other today are doing business. When you’re doing business, one of the main things you care about is do I trust the other party? With blockchain, the value of trust will be diminished. A lot of business models will change because of this.
