Following the first 4G LTE mobile networks launched in 2011, Saudi Arabia has seen these high-speed services adopted as the standard of choice for mobile connectivity. Since then the Kingdom has stayed on the forefront of technological transformation.
That benchmark is moving swiftly, however. Many experts predict that mobile traffic could swell by a factor of 10 by 2018. This will introduce a significant gap between the public's mobile needs and the ability of current technologies to support that breadth of connectivity. That will in part be driven by more devices in the hands of consumers, with the Saudi market accounting for over 50% of the mobile-connected devices shipped across the GCC in Q1 2015, and the region's own mobile devices market expected to increase by almost 30 percent by 2019.
Thankfully that gap is less daunting as we approach another historic leap in mobile innovation. Expected to be launched in 2016, the commercialization of 4.5G mobile broadband will inaugurate the Gigabit era--enabling people to enjoy increasingly connected and intelligent lives.
Yet are we ready for this technological leap? If so, when will it come, and what new opportunities will it bring to local communities?
Measuring the Impact
In its simplest form, 4.5G represents the necessary bridge between today's 4G mobile services and a long-term vision for 5G connectivity. Real 5G is still far away from commercial availability. We're talking a decade out, most likely to emerge between 2020 and 2030. As the public's thirst for mobile is rapidly expanding, the 4.5G standard is the only solution to meet these demands.
In specific, the Saudi public will be able to enjoy enhanced mobile services marked by three key upgrades on connections, capacity and latency. As local industries begin to reap the benefits of machine-to-machine communication, 4.5G will open the door to the Internet of Things by increasing the number of possible connections to around 100,000 connections in a single square kilometer.
That's 100 times more connections than most 4G networks. Moreover, 4.5G actually seeks to increase the throughput rate of today's 4G networks by a factor of 50. This gives consumers the chance to experience things like 4K video and virtual reality in their true form.
Third, mobile connections will become accessible faster. Network responsiveness--or "latency"--on 4.5G will be reduced to just 10 milliseconds. Applications for remote education, banking, healthcare, even automatic driving can literally be processed faster than the blink of an eye.
Linking Connectivity and Economy
Within Saudi Arabia, the advancement of 4.5G technology is perhaps no more apparent than in the parallel development of the Kingdom's "Economic Cities" agenda--diversifying the local economy with an emphasis on knowledge-driven industries.
It's no surprise that these connected and intelligent urban landscapes will hinge on the availability of mobile broadband. It is estimated that 90% of cars will be connected to the Internet by 2020. By 2025, 100 billion connections will be generated globally due to enterprises becoming enabled by the Internet. Experts predict that smart homes and smart commercial buildings alone will represent 45% of total connected things in use in 2015, with that number rising to 81% by 2020.
One of the immeasurable values of the birth of 4.5G is that it also gives clear direction to organizations as they grow their digital footprint. It's one standard that builds on existing investments and paves the way for future innovations. The enhanced capacity, number of connections, and latency of 4.5G will be essential in meeting these new urban realities. Huawei's own Center of Excellence for Smart Cities & IoT is currently assisting governing bodies and telecom operators to drive new 4.5G initiatives from concept to reality.
What many people don't realize today is just how soon this transformation could take place. It is estimated that 4.5G will take off around 2016. Numerous trials are already under way in both mature and developing countries worldwide. Leading operators in the Kingdom are already announcing plans for 4.5G networks to be commercialized as soon as the standards are released by industry regulators. Huawei has been working with these regulators and local operators on a 4.5G vision that leverages experiences in LTE systems and which taps the $600 million that we've already allocated for 5G research by 2018.
To address the challenges brought about by our society's digital transformation, mobile networks must be able to facilitate broader capacity, more connections, and instant service access. It is with this ambition in mind that we can look forward to 4.5G services in the very near future.