Verizon and Ericsson collaborate on innovative 5G feature to enhance user experience
- Verizon and Ericsson are working to evolve the Radio Access Network providing 5G technology by introducing advanced technology features that will push the boundaries of what this service can provide to customers.
- The L4S trial demonstrated how enabling L4S signaling in the Radio Access Network allowed content providers to adjust the rates at which they sent their data packets, thereby markedly improving the performance of urgent, high-bandwidth applications over Verizon's 5G network.
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Insights
The trial of Low-Latency, Low-Loss, Scalable Throughput (L4S) capabilities by Verizon and Ericsson represents a significant development in 5G technology, with implications for both the telecommunications industry and various sectors that rely on high-speed, reliable connectivity. The successful demonstration of L4S, which promises to halve latency and improve the reliability of data transmission, is likely to enhance the performance of time-sensitive applications such as interactive video and augmented reality (AR).
From an industry perspective, this advancement may lead to a competitive edge for Verizon in the 5G space, potentially increasing its market share and impacting its stock valuation positively. Moreover, the focus on time-critical high data rate applications is indicative of the evolving use cases for 5G beyond standard consumer mobile usage, opening up new revenue streams for the company through business solutions and partnerships with content providers.
For stakeholders, the short-term benefits include the potential for new customer acquisition and retention due to improved service quality. In the long term, the integration of L4S into Verizon's network architecture could lead to the development of new industries and the transformation of existing ones, as businesses leverage the enhanced capabilities to innovate and offer new services. However, the costs associated with deploying such technology and the need for continuous investment in R&D to maintain technological leadership are potential drawbacks that need to be considered.
Verizon's L4S trial is a strategic move to address the growing demand for low-latency, high-throughput network capabilities that are crucial for emerging technologies such as AR/VR, V2X communications and teleoperated driving. The ability to dynamically adjust data packet rates could become a key differentiator in the 5G services market, where customer expectations are rapidly evolving.
From a market perspective, the successful trial indicates Verizon's commitment to investing in network quality, which could positively influence customer satisfaction and brand reputation. This is particularly important as the telecommunications sector is highly competitive, with customer experience often being a deciding factor in service provider selection. The reduction in latency by up to fifty percent not only meets but exceeds industry expectations, setting a new benchmark for competitors.
Investors should note that Verizon's advancements in 5G technology could also indirectly impact a wide array of industries that depend on reliable, high-speed communications. Companies in entertainment, automotive, manufacturing and logistics sectors may see improved operational efficiencies and new service offerings as a result of these network improvements, potentially leading to broader economic growth stimulated by 5G adoption.
The financial implications of Verizon's L4S technology trial are multifaceted. On one hand, the capital expenditures required for such technological advancements could put short-term pressure on Verizon's financials. However, the long-term potential for revenue growth through enhanced service offerings could outweigh these initial costs.
Investors should consider the scalability of L4S technology when evaluating its impact on Verizon's financial performance. If the technology can be deployed at scale without prohibitive costs, it could lead to significant improvements in network efficiency and customer experience, thereby driving revenue growth. Additionally, the ability to offer differentiated services may allow Verizon to command premium pricing, improving their average revenue per user (ARPU).
It is also important to consider the strategic partnerships and collaborations that may arise from this technological advancement. The trial's success could attract new partnerships with tech companies and content providers looking to leverage Verizon's enhanced 5G network, potentially leading to lucrative contracts and joint ventures that could further bolster the company's revenue streams.
Low-Latency, Low-Loss, Scalable Throughput (L4S) capabilities enable higher performance for demanding customer solutions that require an enhanced quality of service
SANTA CLARA, Calif., Feb. 06, 2024 (GLOBE NEWSWIRE) -- Verizon and Ericsson recently completed a trial of advanced Low-Latency, Low-Loss, Scalable Throughput (L4S) capabilities that will optimize Verizon’s 5G network for more robust solutions like interactive video, remote control of industrial processes, augmented reality (AR) and virtual reality (VR).
“While the first wave of 5G saw massive network infrastructure deployments, increased 5G adoption, and rapid ecosystem building, the second wave of the 5G era will be characterized by widespread innovation built on speed, massive capacity, low latency, security and reliability,” said Adam Koeppe, Senior Vice President of Network and Technology Planning for Verizon. “Just as we worked to evolve 4G after its initial launch into a high-performance network, we are now evolving the Radio Access Network providing 5G technology by introducing advanced technology features that will push the boundaries of what this service can provide to our customers.”
L4S is a cutting-edge capability designed to enable content providers to use the specific, robust network resources needed for a variety of time-critical applications, including entertainment, gaming, AR/VR, real-time video conferencing, Vehicle to Everything (V2X) communications, teleoperated driving, and drone operations, which all have in common the need for fast and consistent throughputs and the ability to meet desired latency targets in real time.
“The potential of 5G lies in its ability to facilitate a diverse array of groundbreaking services, particularly in time-critical communications for both consumers and businesses,” said Graham Osborne, Vice President and Head of Customer Unit Verizon for Ericsson North America. “This recent achievement with Verizon underscores the significant improvement in performance of time-critical, high-rate applications enabled through the L4S capability.”
The L4S trial, conducted in Ericsson’s D-15 5G innovation and co-creation lab in Santa Clara, CA, tested an XR application using an XR virtual reality headset over Ericsson’s 5G stand alone core connecting to Verizon’s C-Band spectrum. The trial demonstrated how enabling L4S signaling in the Radio Access Network allowed content providers to adjust the rates at which they sent their data packets, thereby markedly improving the performance of urgent, high-bandwidth applications over Verizon's 5G network. The results showed latency reduction by up to fifty percent, demonstrating the potential of L4S as a rate adaptation framework for 5G time-critical high data rate applications.
Building on a strong foundation
The introduction of L4S capability in Verizon’s 5G network is the next in a long line of technology advancement efforts the carrier has taken over the past several months to advance and mature 5G technology in order to realize the full benefits of this new service.
“Our goal from the beginning has been to create a transformational 5G network. That requires a redesigned, newly architected, fully virtualized network that can fundamentally manage mobile data differently than we have in the past,” said Koeppe. “With our virtualized Verizon Cloud Platform (VCP) core architecture, spectrum choices, virtualized RAN, owned and upgraded fiber footprint, edge platform capabilities and infused intelligence, we are leading the industry in introducing advanced technology and capabilities into the 5G network.”
When introduced into the network, L4S will work in conjunction with other advanced technologies in the network to provide the necessary speeds, latency and performance for more robust solutions. Active Queue Management, caches, Mobile Edge Compute (MEC) capabilities, the Verizon Cloud Platform (VCP), a fully virtualized 5G stand alone core, virtualized RAN, artificial intelligence, network slicing, and expansive orchestration will all work harmoniously in Verizon’s 5G network to provide the advanced capabilities needed for robust solutions like XR applications, vehicle-to-vehicle communication while driving, robots interacting on a factory floor, thousands of sensors in a warehouse sending real-time information or drones sending near real time video while flying.
MEDIA CONTACT:
Karen Schulz
864.561.1527
Karen.schulz@verizonwireless.com
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