Cloud VR, a Path to Monetization of Next-Generation Networks

In July 2018, China Mobile Fujian (Fujian Mobile) launched cloud Virtual Reality (VR) in smart home video services. China Mobile Fujian’s cloud VR service, named AND Cloud VR, will offer a wide range of services, including VR live broadcast, VR Video-on-Demand (VoD), VR IMAX experiences, VR gaming, and VR education programs. The service is powered by technical solutions from Huawei and other partners. The platform utilizes cloud Graphics Processing Unit (GPU) rendering and cloud-based service architecture to offer customers an immersive VR video experience during concerts, sport events, movies, and educational courses, using VR Head-Mounted Displays (HMDs). According to China Mobile Fujian, the cloud VR service will be offered with fiber-optic broadband supporting speeds from 100 Mbps to 1 Gbps.

Currently, mobile VR platforms have to rely on processing capacity of the smartphones, and placing the smartphone in the HMD makes it heavy and bulky. When applications that required high processing power, such as gaming, some applications in healthcare, etc., are used, users will need to rely on tethered VR, which is connected to a Personal Computer (PC) or a game console. Tethered VR does provide efficient processing power; however, the connection requirement between the HMD and the PC limits the mobility of the users. The development of wireless add-ons between the VR HMD and PC or console provides a wire-free feature, but users still need to stay within the limited range from the tethered device. Furthermore, tethered VR devices need costly high-end PCs and consoles. Similar to mobile platform, standalone VR provides freedom of movement; however, processing capability constraint exists in standalone platform too.

When content publishing and rendering is performed on the cloud, the system requirement on the terminal devices is reduced. Users can access cloud VR programs without being required to purchase or upgrade a mobile device, PC, or console that is compatible with VR HMDs. Furthermore, the limitation in user mobility while using the tethered VR HMDs is also addressed by cloud VR platform. The users will be able to access VR content regardless of the location. According to China Mobile Fujian, the AND Cloud VR platform provides stable transmission of video streams and high-quality images while reducing the processing requirements of VR hardware. China Mobile Fujian claims that its AND Cloud VR platform reduces the VR HMD cost by 70% to 80%.

As cloud VR shifts local processing to cloud, there is opportunity for development of low-cost VR HMDs, which primarily includes display and sensors to access the VR program from the cloud. Access to VR content using low-cost devices will create a healthier VR ecosystem through a larger installed base and greater understanding. Application developers can now take advantage of cloud VR platforms to create a wider range of content for consumers and business applications. High-quality VR gaming can now reach mass user base as the hardware cost is significantly reduced. Application developers will also see a tremendous opportunity in the enterprise space where hardware cost has been a challenge for many small- and medium-sized businesses. Cloud VR is expected to speed up development of applications in retail and marketing, training and communication applications, etc.

The rollout of cloud Digital Video Recorder (DVR) services is also likely to place additional strain on fixed and mobile network infrastructure in terms of bandwidth and delay associated with the network. As VR technology continues to evolve, higher resolution and low-latency content, including 4K, 8K, and Six-Degrees-of-Freedom (6DoF) video and applications such as remote medical procedures, will require more than 1 Gbps access bandwidth and latency as low as a few tens of milliseconds for acceptable user experience. In addition, multiple users accessing such cloud VR content simultaneously will further drive bandwidth requirement and push telco operators to roll out highly efficient networks. Operators can consider infrastructure to upgrade to 5G in order to offer stable and uniform user experience for cloud VR applications. LTE Advanced-Pro can support up to 3 Gbps throughput. However, latency-sensitive VR applications, such as surgical training or surgical preparation, will be best served by 5G which can support up to 20 Gbps peak data rates and latency as low as 1 ms. Similarly, in fixed infrastructure, Fiber-to-the-Home (FTTH) rollouts and convergence of fixed and mobile networks utilizing 5G for the last-mile connectivity will enable operators to efficiently support cloud VR services.

As network operators upgrade their fixed and mobile broadband infrastructure, home Wi-Fi networks also need to support required bandwidth. This is likely to push Customer Premises Equipment (CPE) makers to speed up the development of residential Wi-Fi devices supporting the 802.11ax standard, which can provide up to 10 Gbps. Telcos and pay-TV operators should also focus on monetization opportunity of high-capacity networks and cloud VR platforms. Operators can upsell the mobile data plans supporting 5G services together with the offer of premium content such as VR sports content, VR live streaming of major events, etc. Service providers can also expand the range of VR services such as VR-based Telehealth, communication services, corporate training, and other enterprise solutions for consumers and business customers. In conclusion, cloud DVR is expected to create a healthy ecosystem by creating a monetization opportunity in the development of VR applications and devices as well as in investment of 5G and next-generation network infrastructures.