The Development of 5G
Vertical Applications in
TaiwanDaniel Liu
Deputy Director, DTRI/III
2024.05.31

danielliu@iii.org.tw
www.iii.org.tw

Digital Transformation Enabler - III

As the Digital Transformation Enabler, our objective is to promote

information communication technology innovation and applications in
Taiwan, and to assist in the development of the digital economy.

1

大綱
⚫ 標題

1

Taiwan Private 5G Policy

2

Taiwan Private 5G Strategies
and Actions

3

Trends in Vertical Applications

4

Conclusion

◆ 細項

2

01
Taiwan Private 5G
Policies
3

Taiwan Private 5G Commercialization⚫Japan and Germany lead private 5G network commercialization, followed by USA,UK and France⚫Taiwan Private 5G network enters commercial from June 2023

As of 2024.Q1• Applications: 114• Deployment admissions: 79• Licenses: 6• License-free(short-term): 12

Source: ISTI/ITRI(2022/11), NRI Taiwan(2023/05), ADI/MODA(2024/03)

4

Taiwan Private 5G Policies

FlexibleOpen

Simpleintegration with other core/access network

interconnection of same
purpose networks

application counseling &assistancepreferred frequency usage rate

cloud connections needspecial review
interference evaluation
and resolution

simplified base station andnetwork verificationacquirement of equipment

accelerates experimental network
migration to commercial use
no verification required for experimental
and short-term applications

Source: moda Private 5G Promotion Office5

Private 5G Needed in Various Vertical Domains
Private 5G Top 3 Vertical Domains 2023: Smart Factory (36%), Smart EXPO (23%), Labs (11%)
Support traditional
industries

Vertical Domains
OthersSmart food safety

8 (8%)

2 (2%)
Smart logistics

Smart Factory

2 (2%)

38 (36%)Cyber-physical

Boost advantage
industries

integration
2 (2%)
Smart Education/Training

4 (4%)

GlobalMarket105
cases

5G for wireless monitoring ofmushroom growth combinedwith data analysis andenvironment control toimprove efficiency and tackle
lack of labor

Smart Transportation4

industrial safety applications
using 5G for e-fence andpersonal protection equipment
checking(4%)

Promote publicwelfareSmart Travel/Leisure
8 (8%)

5G+AI improves traffic
accidents detection,
notification, and first responseto reduce impact and damageLabs
12 (11%)

Smart EXPO 24(23%)

Source: ADI/MODA

6

Challenges of Private 5G Applications and Services
in Taiwan
Connectivity of equipment needs enhancement

High initial costs
SMEs comprise 98% of Taiwan enterprises.
Limited budget and lack of professional staff
are main hurdles of introducing Private 5G.
Organization and operation flow changes
impact resulted by DX is also worried.

For example, in smart factory domain, morethan 50% of equipment does not have 5G
connectivity which lowers the willingness of
introducing Private 5G.

Vertical industries need software and IT services

Added value of data not well evaluatedImportance and potential of big data arewidely known. However, enterprises have notevaluated the value of data collection,
process and utilization. In turn, Private 5G
benefits are not appreciated.

Source: moda Private 5G Promotion OfficeSome vertical industries are in lack ofautomation, software and IT capability. It is
hard for them to evaluate the cost and benefit
of using Private 5G. Let alone maintaining andoperating a Private 5G on their own.

7

Software and IT Services are Key
120000000

Billions, USD$

1,093.9E

100000000

RAN
Core
核網
Network

MEC
80000000

Network SW

Professional
專業服務Services

5.3%

2021-2030
CAGR

11.8%

1

45.8%

•

60000000

7.7%
15.0%

20000000

43.7%

37.8%

36.8E

Professional
Service251.8E

39.5%

23.1%

0
2021年

2026年
40.2%

Source: IEEE Communication Society, RcrWireless, moda Private 5G Promotion Office•

By 2030, global private 5G core network andrelated IT services market will surpass
USD$60.7B with 45.8% CAGR from 2021 to2030.

2. Every industry has its Private 5G needs:

39.2%

40000000

1. Software and IT services will be the core ofmobile broadband private network :

2030年

8

•

Since June 2023, the applications of Private
5G in Taiwan have reached 114 cases as of
Q1 2024.
Telecom, IT service and cable TV companies
are transformed to 5G SI to support verticalindustries introducing and expanding
various 5G applications.

02
Taiwan Private 5G
Strategies andActions9

Taiwan Private 5G Strategies
Digital Innovation
Cross-ministries
collaborations to forge
commercial Private 5G
solutions. Incentives areprovided to speed-up formingof eco-systems, SW/HW
integration and expansion ofPrivate 5G services.

Strong Digital Base

03
Private
5G Ecosystem

02

Dedicated office providing onestop service for Private 5G
network application anddeployment

01

DX of Industries
Co-work with industrial associations
to promote investment in deploying
common Private 5G applications of
their industry to enable digitaltransformation of industries.

10Dedicated Office for Private 5G One-Stop
Services
Private 5G Promotion

Industry consultation
On-site visiting
Potential field on-site counseling
Demand & supply matching

Information Platform
Private 5G industry dynamics andactivities
Application announcement and related
information
Application documents

Source: moda Private 5G Promotion Office

Application counseling
PromotionCounseling

Private 5G
Promotion
OfficeVerification

Information

11

Private 5G application counseling andassistancePrivate 5G setting evaluationinterference evaluation and resolution
support

Verification and review
Private 5G setting application reception
Review and spectrum usage approval
Network verification and license
admission
On-site field cybersecurity review

Promote Industrial DX via Co-creation⚫ Co-drafting Private 5G applications blueprint with industrial associations to inspire
more applications and services imagination⚫ Accelerates industrial DX with Private 5G via diversified benchmark use cases
Traditional industry

High-end manufacturing

Production and manufacturing:
sheet metal, machinery, meatproducts, textiles...etc.
Agriculture, forestry, fisheryand animal husbandry:
greenhouses, farms, fish farms,
pastures, etc.

Key industries:
semiconductor,
electronics, optics,
displays, robotics, and
more.

12

Business services

People's livelihood services:
retail, tourism, exhibitions, TV
stations, medical care,education...etc.

Cross-ministries collaboration enables digital
innovations with 5G
5G Cyber-physical remote performance

5G immersive interactive exhibition

兩廳院、中正紀念堂

高展館、南港展覽館

MOC & MODA

Private 5G+AI

Portable easy deployment Private 5G

5G行動車出任務

MOEA & MODA

5G+AI+元宵燈藝Local governments & MODA

13

MOTC & MODA

National Exhibition Halls as example –Hall as a Platform
會議中心(北館3F)
南館展覽區(1F)

北館展覽區(1F)

Total Max Data Rate
Interaction with virtual scenery simply by scanning QR code.

UL: 5,000 Mbps
DL: 8,600 Mbps
5G BS：47 small cells
Area: 2.3ha (full coverage of all halls)

Combing real-time open data such as weather and traffic
information. Artworks and virtual Mazu island sceneries canbe blended and shown to global tourists.

14

03
Trends in Vertical
Applications
15

Expanding 5G application services
across various industries⚫ In-depth cooperation in 5G specialized services across various industries and domains and software solutions

will strengthen the commercialization of private 5G application services. In addition to empowering thetransformation of Taiwan's key vertical industries, we will also actively leverage Taiwan's experience to provide 5G
application service solutions to partners worldwide.

Boost advantage
industries

People's livelihood services:
retail, tourism, exhibitions, TV
stations, medical care,education...etc.

16

5G
application solutions

Production and manufacturing:
sheet metal, machinery, meatproducts, textiles...etc.
Agriculture, forestry, fishery andanimal husbandry: greenhouses,
farms, fish farms, pastures, etc.

Promote publicwelfareVertical industry field

Key foreign exchange earningindustries: semiconductor,
electronics, optics, displays,
robotics, and more.

Support traditional
industries

5G digitalapplication plus
software andhardwareintegration goesglobalDedicated network leasing services reducethe barriers to adopting Private 5G network⚫ Through innovative private 5G software systems such as shared core networks and multi-domain
network management systems, the development of network leasing service models reduces thebarriers to adopting private 5G network. This enables tangible benefits for digital transformation
across various industries.

Shared core
network
Core network system,
network management
system• Call by API• Call by Usages

Leased equipment

Private network related
equipment,base station, terminal• Charge by Devices• Charge by Duration

17

Private 5G application
services across industries

Design and build
and subsequent
maintenance• Telecom operators invest inenterprise services independently.
• Telecom operators forming
alliances with IT service providers.

Transformation of high-end manufacturingindustry
High-end manufacturing industries (such as AI PC manufacturers, etc.) enhance production efficiency and reducelabor costs by establishing smart factories. At the same time, they integrate 5G smart factory applications (such as
digital twins, intelligent inspections, etc.) to create new business models and seek opportunities for overseas factory
exports.
Application service

Application service

Digital twin system

Combining IoT and equipment health management
solutions to predict equipment failures and production
issues in advance, thereby enhancing production
efficiency and quality

Smart production line
inspection system

Applying AI and AR technologies for production line inspection
and remote troubleshooting, enabling rapid response andresolution of anomalies.
18Transformation of traditional manufacturingindustry
Traditional manufacturing industries (such as food processing and metalworking) enhance productivity by
establishing intelligence, effectively monitoring production capacity, and reducing task handover and communication
time. This also lowers environmental and occupational safety risks.
Application service

Application service

3D Digital Situation Room Platform

By customizing 3D digital operation manuals and confirming productproduction details and key points with customers, inspection
personnel can use mobile devices to locate and display AR machines,
allowing them to observe simulated machining actions.

Mobile Inspection System

Intuitive AI image recognition enables rapid identification of
instrument data, electronic meter reading, and detection ofchanges in equipment appearance to determine abnormalities.
19Transformation of business services industry
Business service industries (such as exhibitions, cultural events, hospitality, and retail) utilize private 5G networks tosupport high-quality immersive applications, enhancing customer service to strengthen consumer loyalty. Additionally,
through digital integration with physical spaces, they can create new business models for the future experience
economy.
Application service

Application service

Virtual-Reality Coexistence Exhibition Solution

Creating a new experience for exhibitions and performances that ensuresaudiences get their money's worth. Remote performers utilize real-time Chroma
key rendering. Meanwhile, on-site spectators can switch between first-person
and third-person perspectives using AR, fostering interactive immersion within
integrated virtual and physical settings.

Immersive Experience Banquet Solution

Upgrading service models through innovative experiences, revitalizing venue
services and adaptations, enhancing communication efficiency, increasing
customer attraction, accelerating transactions, and reducing waste fromdecorations.

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Local cultural revitalization andtransformation
In response to the challenges and opportunities of the digital economy era, introducing private 5G and digitaltechnology into cultural festivals not only enhances Taiwan's festival culture and tourism industry marketing
capabilities, but also leveraging the power of digital software applications, collaboratively develops new businessmodels and creates experiential marketing opportunities.
Application service

5G Digital Festival Experience Solution

Application service

The solution Integrates traditional craftsmanship with 5G mobile production
and broadcasting systems, utilizing 5G transmission technology, andintegrating the classical aesthetics of traditional lighting art against the
backdrop of famous landmarks, employing digital generative art techniques
to provide the public with a new experience of digital light festivals that
promote cultural inclusivity.

5G Immersive Festival Live Streaming Solution

The solution integrates folk and religious cultures with innovative 5G
applications to revitalize local festival's cultural assets, attracting moreyoung generations to participate in local folk culture.

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Integrating with local culture to accelerate thepopularization of private 5G networks
Deploying portable and easy-to-deploy
private 5G networks integrated withlocal culture and festivals, bringing
applications into daily life.
5G Mobile Production andBroadcasting System

Hsinchu

Hsinchu/
5G Tung Blossom
Festival

Chiayi/5G Tea
Festival
ChiayiTainanKaohsiung

Kaohsiung/5G
Comic Festival
22

Tainan/2024
Taiwan Lantern
Festival

04
Conclusion
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Private 5G is cross domain, service and
SW/HW
Local cross-domain
collaboration◼ Effectively integrate local applications and services with various
kind of technologies, e.g. AR/VR.
◼ Lead local ICT applications and services venture companies to join
operation and develop new eco-systems.

Accelerate field DX◼ Expand, diffuse and continuously optimize developed innovative
solutions with sustainable business plan.
◼ Keep on improving Private 5G solutions and vertical domain
applications to accelerate commercialization.

Utilize Private 5G SW
Technology◼ Focusing on local advantageous industries to promote utilization of
5G to accelerate introduction or production of effective smart
services.
◼ 5G and on-top applications help enable digital upgrade of local
industries and establishment of Taiwan 5G AIoT eco-system.

Field demands drive 5G innovation

Expand ICT innovative application
business

Accelerate AIoT services upgrade

SW+HW Integration

Develop Private 5G applications andservices◼ Catch domain demands and introduce 5G, AI, display, etc.
◼ Create Private 5G service systems for various industries to drive
the integration of contents, systems and services with softwareand hardware.
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Accelerated Growth of Private 5G withthe help of Integrated Services
Open
Network

Closed → Open

Related industries:

Industrial
Applications

Under same deployment plan, a 5G network costs 3.5~8 times morethan a 4G network
Service update depends on equipment vendors

Communications
equipment, components,
servers

Public → Private

Related industries:

USA, Germany, Japan and Taiwan have released private network dedicatedspectrum
Industrial organizations such as 5GAA and XGMF are devoted to promote
development and usage

Private network system, SI,software applications

SoftwareValue Add

Hardware → Software

Related industries:

Linux Foundation supports various projects, such as Openchain,
OpenSSF, to help build complete eco-system
The emerging AI RAN Alliance is exploring AI for RAN, AI and RAN, AI on
RAN 5G+AI software eco-system
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AI, software solutions, SIThank you

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