Every year, Mobile World Congress presents a glimpse of the connected future. Here’s what you need to know

1. GET TELECOMS
SMART
Mobile World Congress
2019

2. GET TELECOMS SMART
Mobile World Congress 2019
As they do every February, telecoms service providers, device manufacturers,
infrastructure providers and all manner of existing and aspiring tech players descended on
Barcelona last week to catch a glimpse of, and present their version of, the connected
future.
“As a bellwether for the industry, MWC reflects both the
aspirations and the realities of a mobile communications
sector in a state of flux.”1
The event has expanded far beyond the mobile industry gathering that it used to be and
is now one of the most prominent tech events in the world. Here’s what you need to
know:
5G HARDWARE AND TECHNOLOGY
As expected, 5G featured prominently during the event; from presentations of new 5G-
ready handsets to be launched this year to all imaginable and, until now, unimaginable
connected devices: “flight simulators, car-racing games, drones and internet-connected
beer kegs were available for testing”2
.
“5G promises super-fast connections which evangelists say
will transform the way we live our lives, enabling everything
from self-driving cars to augmented-reality glasses and
downloading a feature-length film to your phone in
seconds.”3
However, as more devices, machines and industries (“GSMA forecasts the number of
internet-enabled devices will triple to 25 billion by 2025”4
) start relying on the new
technology, security concerns will augment. Security and the risks associated with
increasing connectivity were hot topics debated in Barcelona and will need to addressed
within all developments.
1
MWC19: What to Expect, Ovum
2
NY Times, https://www.nytimes.com/2019/02/27/technology/mwc-2019-5g-huawei.html
3
NY Times, https://www.nytimes.com/reuters/2019/02/27/technology/27reuters-telecoms-mobileworld-5g-security-
explainer.html
4
NY Times, https://www.nytimes.com/reuters/2019/02/27/technology/27reuters-telecoms-mobileworld-5g-security-
explainer.html

3. GET TELECOMS SMART
Mobile World Congress 2019
It was obvious at this year’s event that 5G will offer a favourable push for multiple
connected segments – for instance, cloud gaming is about to see a renaissance, almost a
decade after the first cloud gaming concept was launched, which offered instant access
to popular game titles via a set-top box or a desktop app. 5G speeds permit a significantly
improved experience, and an array of 5G devices including smartphones and hubs with
advanced cloud gaming features were presented, alongside AR and VR capabilities for
gaming.
Augmented reality in general is expected to benefit from higher speeds, and new
technology presented in Barcelona exemplified the next stage of AR advancements – in
particular Microsoft’s HoloLens 2, which CNet called “practical magic”’. “The HoloLens 2 is
a practical device for companies to help their employees. AR has become a tool for
getting things done.”5
The target is business customers, due to price restrictions. “Other
AR headset makers, most notably Google and Magic Leap, have also shifted their focus to
enterprise, as consumer-centric AR headsets have so far failed to provide truly practical
use cases, in addition to being very expensive.”6
One of the challenges operators continue to face as they roll out 5G is that the technology
requires a larger antenna, which many cities are not open to having in their communities.
On top of this, the “super high-frequency airwaves [use] something called millimeter wave
spectrum, which … [is unable] to get through walls.”7
Many vendors showcased antennae
iterations aimed at reducing the footprint required; Ericsson offered a simple solution to
address both of these problems, launching a device with circuit boards and tiny antennas
able to pick up and send 5G data, all packaged into a small strip of plastic. It is so
innocuous it can be embedded into wallpaper or lain under carpet - allowing network roll
out to be as simple as laying out a carpet.8
FOCUS ON PREMIUM HANDSET FEATURES
Smartphone manufacturers are resting a lot of hopes on 5G to drive a new handset
replacement cycle, although the new connectivity standard is not expected to drive major
sales just yet. Instead, the key new smartphone features presented this year largely
focused on screens and cameras, with foldable devices appearing as the trendiest type of
handset. As growth opportunities for smartphone manufacturers become increasingly
limited, they are focusing on pushing up the premium bar to grow revenues from those
consumers chasing latest tech who are ready to spend on innovative devices. Both
Samsung and Huawei presented foldable smartphones priced starting at $2000. Other
5
CNET, https://www.cnet.com/news/hololens-2-hands-on-this-feels-like-practical-magic/
6
Ovum, MWC 2019 Highlights: Day One
7
CNET, https://www.cnet.com/news/the-biggest-5g-breakthrough-may-be-this-harmless-little-plastic-strip/
8
CNET, https://www.cnet.com/news/the-biggest-5g-breakthrough-may-be-this-harmless-little-plastic-strip/

4. GET TELECOMS SMART
Mobile World Congress 2019
innovative features presented included a pop-up selfie camera from Vivo and a five-
camera handset from Nokia.
This slew of new designs was “a long time coming,” 9
following few handsets releases at
MWC 2018. This year’s premium developments do however, suggest that “device
manufacturers do not believe that 5G on its own will be enough to excite consumers into
early upgrades” 10
– a challenge for all in the sector to overcome.
OPERATOR PARTNERSHIPS
AT&T and Vodafone announced a global partnership to develop connected car services
across North America, Europe and Africa. Jointly, the two companies already “work with
nearly 50 global automotive brands […] how they use this as a platform to grow their
approaches to IoT automotive will be crucial to their success in this already hotly
contested field”.11
“AT&T and Vodafone's collaboration on automotive IoT
points the way forwards for tier 1 operators with global reach:
partnering to scale-up reach for combined technology
approaches, and to extend their reach into as many markets
globally as possible.”12
Efforts to connect the unconnected in developing markets are announced every year, and
new partnerships for achieving this were announced last week in Barcelona. Orange,
KaiOS Technologies and UNISOC are set to launch a 3G+ handset costing just $20 in 16
countries in Africa and the Middle East, while Nokia is “expanding its participation in
Facebook Connectivity's initiatives to enable CSPs to provide quality internet access to
customers in emerging markets”.13
A NEW TYPE OF COMPETITION ON THE HORIZON
In terms of prominent news in the operator world, newcomer Rakuten stood out. The
Japanese company plans to launch the world’s first ever “end-to-end cloud-native
network” 14
– a new network consisting “entirely of software running on standardised low
cost hardware, rather than expensive proprietary hardware that most cellular networks
9
MWC 2019 Highlights: Day One, Ovum
10
MWC 2019 Highlights: Day One, Ovum
11
MWC 2019 Highlights: Day One, Ovum
12
MWC 2019 Highlights: Day One, Ovum
13
MWC 2019 Highlights: Day Two, Ovum
14
MWC 2019 Highlights: Day Two, Ovum

5. GET TELECOMS SMART
Mobile World Congress 2019
depend upon”15
. According to Rakuten’s official blog, this is a complex and challenging
task in a category that has typically lagged in innovation, and which has relied on
expansive and expensive kit. Tareq Amin, the new provider’s CTO, believes the company’s
advantage is that: "We are not a telecommunications company, we are an internet
services company driven by innovation.” The provider will be one to watch in 2019, in
particular since its CTO previously worked at Reliance Jio – a challenger operator that has
dramatically disrupted the Indian mobile market in recent years.
In theory, this new type of network could lead to simpler, more flexible and cheaper to run
mobile infrastructure: “the promised land that we’re all trying to get to”, according to
Andy Hicks of Global Telecom Technology & Software, GlobalData.16
However, speakers at MWC also demonstrated opportunities for operators to expand
outside of the traditional connectivity landscape, with Orange Bank’s CEO Paul De Leusse
running through some of the telco’s aims to expand its banking offering: “The aim of
Orange is to build banks in every country we operate as a telco… We want a bank which
benefits from the telco and brings benefit to the telco.”17
These benefits include thorough
datasets, which Leusse claims can identify the 30% of customers who represent 80% of
the credit risk. Offering more wide-ranging services can also help the core telco business,
with customers who have both a banking and telco relationship with Orange proving 15%
more satisfied, which is associated with a decrease in churn – down by 18% in Poland
among these customers, and up to 40% in Africa. 18
In theory, we are entering a period in which operators have more opportunities than ever
before, but they must also be more innovative than ever if they wish to compete.
WHAT WE TOOK FROM MWC 2019
At MWC this year, launches and products demonstrated some of the opportunities that
boundless connectivity will bring, with the focus on the positive revenue impact that
emerging new mobile technologies can offer. This future felt closer than ever as it was
presented alongside developments which overcome some of the barriers that sit between
now and the future – between new antennae developments, new partnerships and new
networks, the connected future is on its way.
15
Rakuten Today blog
16
Rakuten Today blog
17
Telcoms http://telecoms.com/495886/orange-bank-is-on-a-roll/
18
Telcoms http://telecoms.com/495886/orange-bank-is-on-a-roll/

6. GET TELECOMS SMART
Mobile World Congress 2019
If you are interested in learning more about the subject of this article, please contact
Melanie Norris, Global Planning Director, norrism@bbdoknows.com
ABOUT BBDO KNOWS
BBDO KNOWS is a planning resource for the BBDO network.
BBDO KNOWS offers thinking, strategy, insights and inspiration on key categories, key
themes and consumer segments.
If you are interested in learning more about the way BBDO thinks please contact Melanie
Norris, Global Planning Director, norrism@bbdoknows.com.
DISCLAIMER
The information and materials in this article are for general information purposes only. Whilst we try to ensure that
all information and data in this article is accurate, complete and up to date, this article should not be relied upon
and you should seek advice if you intend to use or rely upon any of the insights or data contained in this article.
This article must not be shared, downloaded, copied or distributed for commercial purposes without the prior
approval of BBDO. © BBDO 2019 All rights reserved.