ProSe (Proximity Services) For LTE & 5G Networks: 2017 – 2030 – Opportunities, Challenges, Strategies & Forecasts

First introduced in Release 12 of the 3GPP specifications, ProSe (Proximity Services) is a D2D (Device-to-Device) technology that allows LTE devices to detect each other and to communicate directly. It relies on multiple enhancements to existing LTE standards including new functional elements and a “”sidelink”” air interface for direct connectivity between devices.

In comparison to existing D2D and proximity networking technologies, ProSe offers several distinct benefits including but not limited to better scalability, manageability, privacy, security and battery-efficiency. At present, efforts to commercialize ProSe are being spearheaded by the public safety and critical communications sector, amid the ongoing transition from legacy LMR (Land Mobile Radio) systems to LTE networks.

Although initial investments in ProSe-enabled devices will be driven by the public safety and critical communications sector, there also exists a much larger opportunity in the commercial arena. Mobile operators can leverage ProSe to offer a range of B2B, B2B2C and B2C services that rely on proximity, including advertising, social networking, gaming, relaying traffic for wearables and V2X (Vehicle-to-Everything) connectivity.

By the end of 2025, SNS Research estimates that mobile operators can pocket as much $17 Billion in ProSe based annual service revenue. Up to 55% of this revenue figure will be attributable to proximity advertising.

The “”ProSe (Proximity Services) for LTE & 5G Networks: 2017 – 2030 – Opportunities, Challenges, Strategies & Forecasts”” report presents an in-depth assessment of the ProSe market including enabling technologies, key trends, market drivers, challenges, standardization, use cases, applications, business models, pre-commercial case studies, opportunities, future roadmap, value chain and strategic recommendations. The report also presents forecasts for ProSe-enabled device shipments and ProSe based mobile operator service revenue from 2018 till 2030. The forecasts cover multiple submarkets and 6 regions.

The report comes with an associated Excel datasheet suite covering quantitative data from all numeric forecasts presented in the report.

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The report covers the following topics:

ProSe technology
Market drivers and barriers
Sidelink air interface and spectrum bands
ProSe discovery and direct communication services
ProSe coverage scenarios and modes of operation
ProSe reference architecture, key functional elements and interfaces
3GPP standardization efforts for ProSe
Competing D2D and proximity networking technologies
Key applications, business models and monetization strategies
Case studies of pre-commercial ProSe engagements
Industry roadmap and value chain
Strategic recommendations for key ecosystem players including chipset suppliers, device OEMs, infrastructure vendors, public safety agencies and mobile operators
Market analysis and forecasts from 2018 till 2030
ProSe (Proximity Services) For LTE & 5G Networks

Forecast Segmentation

Market forecasts are provided for each of the following submarkets and their subcategories:

ProSe Device Shipments & Revenue

Submarkets

Public Safety & Critical Communications
Commercial Sector
Form Factor Segmentation

Smartphones
Tablets
Wearables
Vehicle Mount Devices
V2X Devices
Other Devices
Regional Markets

Asia Pacific
Eastern Europe
Middle East & Africa
Latin & Central America
North America
Western Europe
ProSe Based Mobile Operator Service Revenue

Submarkets

Advertising
Social Networking
V2X Connectivity
Public Safety & Critical Communications
Other Applications
The report provides answers to the following key questions:

How big is the ProSe opportunity?
What trends, challenges and barriers are influencing its growth?
How will the ecosystem evolve by segment and region?
What will the market size be in 2020 and at what rate will it grow?
How big is the ProSe service revenue opportunity for mobile operators?
How will ProSe help public safety agencies in replacing legacy LMR systems with LTE and 5G networks?
How will consolidation in the chipset ecosystem affect the adoption of ProSe?
How can ProSe deliver localized V2X (Vehicle-to-Everything) connectivity?
What strategies should chipset suppliers, device OEMs and mobile operators adopt to remain competitive?

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The report has the following key findings:

In comparison to existing D2D and proximity networking technologies, ProSe offers several distinct benefits including but not limited to better scalability, manageability, privacy, security and battery-efficiency.
At present, efforts to commercialize ProSe are being spearheaded by the public safety and critical communications industry. The ongoing transition from legacy LMR systems to LTE networks is expected to trigger the very first investments in ProSe-enabled devices, as direct communication between devices is an essential requirement for users in this domain.
In the commercial area, mobile operators can leverage ProSe to offer a range of B2B, B2B2C and B2C services that rely on proximity including advertising, social networking, gaming, relaying traffic for wearables and V2X (Vehicle-to-Everything) connectivity.
By the end of 2025, SNS Research estimates that mobile operators can pocket as much $17 Billion in ProSe based annual service revenue. Up to 55% of this revenue figure will be attributable to proximity advertising.

List of Companies Mentioned

3GPP (Third Generation Partnership Project)
Apple
ASTRI (Hong Kong Applied Science and Technology Research Institute)
Bluetooth SIG (Special Interest Group)
Compass.To
DT (Deutsche Telekom)
EE
Ericsson
Facebook
FirstNet (First Responder Network Authority)
Home Office, UK
Huawei
IEEE (Institute of Electrical and Electronics Engineers)
Intel Corporation
KT Corporation
M87
MPSS (Ministry of Public Safety and Security, South Korea)
NEC Corporation
Nokia
NTT DoCoMo
NXP Semiconductors
OnePlus
Qualcomm
Samsung Electronics
TanTan
Telecom Italia Group
U.S. Department of Commerce
U.S. NIST (National Institute of Standards and Technology)
Wi-Fi Alliance
Yahoo
ZigBee Alliance

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Countires Covered

Afghanistan
Albania
Algeria
Andorra
Angola
Anguilla
Antigua & Barbuda
Argentina
Armenia
Aruba
Australia
Austria
Azerbaijan
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Belize
Benin
Bermuda
Bhutan
Bolivia
Bosnia Herzegovina
Botswana
Brazil
British Virgin Islands
Brunei
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Cape Verde
Cayman Islands
Central African Republic
Chad
Chile
China
Cocos Islands
Colombia
Comoros Islands
Congo
Cook Islands
Costa Rica
Côte d’Ivoire
Croatia
Cuba
Cyprus
Czech Republic
Democratic Rep of Congo (ex-Zaire)
Denmark
Djibouti
Dominica
Dominican Republic
East Timor
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Faroe Islands
Federated States of Micronesia
Fiji
Finland
France
French Guiana
French Polynesia (ex-Tahiti)
French West Indies
Gabon
Gambia
Georgia
Germany
Ghana
Gibraltar
Greece
Greenland
Grenada
Guam
Guatemala
Guernsey
Guinea Republic
Guinea-Bissau
Guyana
Haiti
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Iran
Iraq
Ireland
Isle of Man
Israel
Italy
Jamaica
Japan
Jersey
Jordan
Kazakhstan
Kenya
Kirghizstan
Kiribati
Korea
Kosovo
Kuwait
Laos
Latvia
Lebanon
Lesotho
Liberia
Libya
Liechtenstein
Lithuania
Luxembourg
Macau
Macedonia
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Marshall Islands
Mauritania
Mauritius
Mayotte
Mexico
Moldova
Monaco
Mongolia
Montenegro
Montserrat
Morocco
Mozambique
Myanmar
Namibia
Nepal
Netherlands
Netherlands Antilles
New Caledonia
New Zealand
Nicaragua
Niger
Nigeria
Niue
North Korea
Northern Marianas
Norway
Oman
Pakistan
Palau
Palestine
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Qatar
Réunion
Romania
Russia
Rwanda
Samoa
Samoa (American)
Sao Tomé & Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Slovak Republic
Slovenia
Solomon Islands
Somalia
South Africa
Spain
Sri Lanka
St Kitts & Nevis
St Lucia
St Vincent & The Grenadines
Sudan
Suriname
Swaziland
Sweden
Switzerland
Syria
Tajikistan
Taiwan
Tanzania
Thailand
Togo
Tonga
Trinidad & Tobago
Tunisia
Turkey
Turkmenistan
Turks & Caicos Islands
UAE
Uganda
UK
Ukraine
Uruguay
US Virgin Islands
USA
Uzbekistan
Vanuatu
Venezuela
Vietnam
Yemen
Zambia
Zimbabwe

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Table of Contents

1 Chapter 1: Introduction 11
1.1 Executive Summary 11
1.2 Topics Covered 13
1.3 Forecast Segmentation 14
1.4 Key Questions Answered 15
1.5 Key Findings 16
1.6 Methodology 17
1.7 Target Audience 18
1.8 Companies & Organizations Mentioned 19

2 Chapter 2: An Overview of ProSe 21
2.1 What is D2D (Device-to-Device) Technology? 21
2.2 ProSe (Proximity Services) for 3GPP Networks 22
2.3 ProSe Service Classification 23
2.3.1 ProSe Discovery 23
2.3.2 ProSe Direct Communication 23
2.4 ProSe Coverage Scenarios 24
2.4.1 In-Coverage 24
2.4.2 Partial Coverage 24
2.4.3 Out-of-Coverage 25
2.5 ProSe Modes of Direct Communication 25
2.5.1 Unicast 25
2.5.2 One-to-Many: Group Communication 25
2.5.3 One-to-All: Broadcast Communication 26
2.6 ProSe Modes of Discovery 26
2.6.1 Restricted Discovery 26
2.6.2 Open Discovery 26
2.7 Competing Technologies 27
2.7.1 P25, TETRA & Conventional LMR Systems 27
2.7.2 Wi-Fi 27
2.7.2.1 Wi-Fi Direct 27
2.7.2.2 Wi-Fi Aware/NAN (Neighbor Awareness Networking) 28
2.7.2.3 Ad-Hoc Mode D2D Connectivity & TDLS (Tunneled Direct Link Setup) 28
2.7.2.4 WAVE (Wireless Access in Vehicular Environments): IEEE 802.11p 29
2.7.3 Bluetooth 29
2.7.3.1 Classic Bluetooth 29
2.7.3.2 Bluetooth High Speed 29
2.7.3.3 BLE (Bluetooth Low Energy) 30
2.7.3.4 Bluetooth 5 Enhancements 30
2.7.4 Apple’s iBeacon 30
2.7.5 ZigBee 31
2.7.6 GPS 31
2.7.7 Others 31
2.8 Market Growth Drivers 32
2.8.1 Adoption of LTE for Public Safety & Critical Communications 32
2.8.2 Extending Wide Area Connectivity to IoT Devices & Accessories 32
2.8.3 Better Scalability & Coverage Range Than Competing Technologies 33
2.8.4 New Revenue Streams & ARPU Growth for Mobile Operators 33
2.8.5 Enhanced Manageability, Privacy & Security 34
2.8.6 Alleviating Network Congestion & Improving Spectrum Utilization 35
2.9 Market Barriers 35
2.9.1 Potential Interference 35
2.9.2 Achieving UE Battery Efficiency 35
2.9.3 Impact on Network Resources 36
2.9.4 Dependency on New Chipsets & Devices 36
2.9.5 Interoperability & Other Technical Challenges 36

3 Chapter 3: ProSe Technology & Standardization 37
3.1 Sidelink Air Interface 37
3.1.1 Use of Uplink Resources 37
3.1.2 Transmission Scheme 38
3.1.3 Frequency Bands & Channel Bandwidths 38
3.1.4 New Physical, Transport & Logical Channels 40
3.1.4.1 Physical Channels 40
3.1.4.2 Transport Channels 41
3.1.4.3 Logical Channels 41
3.1.5 Synchronization Signals 42
3.1.6 Alternative Wi-Fi Direct Communication Path 42
3.2 Key Operational Capabilities of ProSe 43
3.2.1 Service Authorization & Provisioning 43
3.2.2 ProSe Discovery 43
3.2.2.1 Direct Discovery 43
3.2.2.2 Specific Direct Discovery Features for Public Safety 45
3.2.2.3 EPC-Level Discovery 45
3.2.2.4 EPC Support for Wi-Fi Direct Communication 46
3.2.3 ProSe Direct Communication 46
3.2.3.1 One-to-One Direct Communication 46
3.2.3.2 One-to-Many Direct Communication 47
3.2.4 UE-to-Network Relay 47
3.3 ProSe Reference Architecture, Key Functional Elements & Interfaces 49
3.3.1 ProSe-Enabled Devices & Applications 50
3.3.2 ProSe AS (Application Server) 50
3.3.3 ProSe Function 50
3.3.3.1 DPF (Direct Provisioning Function) 51
3.3.3.2 Direct Discovery Name Management Function 51
3.3.3.3 EPC-Level Discovery ProSe Function 51
3.3.4 ProSe Proxy 52
3.3.5 ProSe Key Management Function 52
3.3.6 MME (Mobility Management Entity) 52
3.3.7 P-GW (Packet Data Network Gateway) 53
3.3.8 S-GW (Serving Gateway) 53
3.3.9 HSS (Home Subscriber Server) 53
3.3.10 SLP (Secure User Plane Location Platform) 53
3.3.11 S-GW (Serving Gateway) 54
3.3.12 Interfaces 54
3.3.12.1 PC1 54
3.3.12.2 PC2 54
3.3.12.3 PC3 54
3.3.12.4 PC4a 55
3.3.12.5 PC4b 55
3.3.12.6 PC5 (Sidelink) 55
3.3.12.7 PC6 55
3.3.12.8 PC7 56
3.3.12.9 PC8 56
3.3.12.10 S6a 56
3.3.12.11 S1-MME 56
3.4 3GPP Standardization for ProSe 57
3.4.1 Release 12 57
3.4.2 Release 13 57
3.4.3 Release 14 & Beyond 58

4 Chapter 4: ProSe Applications, Business Models & Case Studies 60
4.1 Key Applications of ProSe 60
4.1.1 Public Safety & Critical Communications 60
4.1.1.1 Direct Communication for Coverage Extension 60
4.1.1.2 Direct Communication within Network Coverage 61
4.1.1.3 Infrastructure Failure & Emergency Situations 61
4.1.1.4 Additional Capacity for Incident Response & Special Events 62
4.1.1.5 Discovery Services for Disaster Relief 62
4.1.2 Commercial Applications 63
4.1.2.1 Proximity Advertising 63
4.1.2.2 Localized Social Networking 63
4.1.2.3 Online & Real-World Gaming 64
4.1.2.4 Enabling the Sharing Economy 64
4.1.2.5 Mobile Relaying & Network Sharing 64
4.1.2.6 Wide Area Connectivity for the IoT & Wearables 65
4.1.2.7 Local Data Transfer 66
4.1.2.8 Other Applications 66
4.1.3 Cellular V2X (Vehicle-to-Everything) Connectivity 67
4.2 Business Models: How Can Mobile Operators Monetize ProSe? 68
4.2.1 B2C: Premium Charge for ProSe Capabilities 68
4.2.2 B2B: D2D Services for Public Safety Agencies & Other Enterprises 69
4.2.3 B2B2C: Stacking Consumer Applications over ProSe 69
4.3 Case Studies of Pre-Commercial Engagements 70
4.3.1 Qualcomm: Accelerating Ecosystem Development with LTE Direct 70
4.3.2 DT (Deutsche Telekom): First Pre-Commercial Mobile Operator Trial for ProSe 71
4.3.3 KT Corporation: Emergency Services, Social Networking & Personalized Advertising with ProSe 72
4.3.4 TCL Communication: ProSe-Enabled Device Prototype Demonstration 73
4.3.5 NTT DoCoMo: Empowering the Sharing Economy with ProSe 73
4.3.6 M87: Expanding the Reach of Mobile Networks with ProSe 74
4.3.7 Compass.To: Successfully Conducting the First ProSe Trial in China 75
4.3.8 Others 76

Continue…

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