Ericsson has signed a Memorandum of Understanding (MoU) with PLDT wireless subsidiary Smart Communications to bring 5G technology to the Philippines.
The 5G pilot network, scheduled to go live by early 2019, will be deployed in Luzon, the largest and most populated island in the Philippines. The MoU will allow Smart to explore industry partnership engagements, collaborate with tertiary institutions such as the academia, and further develop competence in 5G.
Chairman, president and CEO for PLDT and Smart Communications Manuel V. Pangilinan said the deal “will open the door to a new wave of innovative services and solutions.”
Ericsson signed the deal following what it said was the first live demonstration of 5G technology in the Philippines.
The demo – which also marked 30 years of Ericsson’s operations in the Philippines – showcased data speeds of 20 Gbps on Ericsson’s 5G trial system, and included 5G use cases in NFV, 3D augmented reality, mixed reality mining and examples of insight-driven automated operations.
Ericsson’s 5G Business Potential report estimates there’s a $1.8 billion revenue opportunity in 2026 for telecom operators in the Philippines addressing industry digitalization with 5G technology. The report also says local operators can add a revenue of up to $619 billion (36%) to their forecast service revenues of $1.7 trillion in 2026 by targeting the digital transformation of other industries, such as automotive and manufacturing, using 5G-IoT technology.