Virtual Reality over Wireless Networks Gaining Momentum in China

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3Q 2018 | IN-5195

Faster and more reliable mobile connection will undoubtedly boost the market demand for standalone VR headsets. At the Mobile World Congress Shanghai (MWCS) 2018, HTC collaborated with China Mobile to launch a 5G Device Forerunner Initiative. The companies aim to advance the development of 5G devices and infrastructure in China as well as push for VR adoption and sales for HTC Vive VR headsets. According to HTC Chairperson Cher Wang, “the proliferation of 5G networks will facilitate new classes of use cases for VR/AR [Augmented Reality] not possible in the past, leading to more rapid mass adoption and more natural interaction models for immersive technologies.”

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HTC and China Mobile to Partner on 5G Virtual Reality (VR) Devices  

NEWS


Faster and more reliable mobile connection will undoubtedly boost the market demand for standalone VR headsets. At the Mobile World Congress Shanghai (MWCS) 2018, HTC collaborated with China Mobile to launch a 5G Device Forerunner Initiative. The companies aim to advance the development of 5G devices and infrastructure in China as well as push for VR adoption and sales for HTC Vive VR headsets. According to HTC Chairperson Cher Wang, “the proliferation of 5G networks will facilitate new classes of use cases for VR/AR [Augmented Reality] not possible in the past, leading to more rapid mass adoption and more natural interaction models for immersive technologies.”

There is high consumer interest in the standalone VR market in China. HTC’s launch of a China-focused standalone VR Head-Mounted Display (HMD) is likely to accelerate the standalone VR market in China starting this year. ABI Research forecasts that VR HMD shipments for China market will reach 20.5 million units in 2022; 30% will be standalone VR devices. It is expected that more demos of live streaming content over 5G to a VR headset will be seen this year. (For more information, please refer to our report on VR in China: Platforms and Content [PT-2009].)

Bring Wireless to VR HMDs

IMPACT


Traditional tethered VR devices currently require wired connections for visuals and processing requirements. However, the lack of freedom in movement has impaired user experience, especially in gaming. Hence, VR HMD makers are planning to add wireless connectivity to tethered devices. Wireless features can be achieved by integrating Wi-Fi or a cellular module in the headset or by using wireless add-ons for those tethered HMDs that do not include wireless connectivity. Oculus is developing a wireless version of its Oculus Rift. Optoma is also developing a tethered VR HMD with wireless connectivity using 60 GHz Wireless Gigabit (WiGig).

The potential use of VR social media applications, social sharing, and remote medical and enterprise applications will drive the requirement of cellular connectivity in standalone VR HMDs. Moreover, deployment of 5G networks is likely to be one of the drivers for adding cellular connectivity in standalone VR devices. VR applications can be very sensitive to network performance in terms of network bandwidth and delay associated with network. Certain technologies—specifically, 5G—can address these challenges. 5G network latencies near the edge are expected to be from 1 millisecond (ms) to 4 ms, making it the best option to serve latency-critical applications. Network slicing features in 5G can provide isolated, customized networks with dedicated Service-Level Agreement (SLA) assurance to serve different AR/VR use cases.

Furthermore, cloud VR technology that allows users to stream video or other content from the cloud instead of on powerful VR terminal devices not only will lower the requirements for VR head-worn devices but also will make the requirements lighter (primarily for display and sensors) and cheaper. Before the commercial arrival of 5G networks, Multiaccess Edge Computing (MEC) can be used in conjunction with next-generation networks for enhanced connectivity . MEC enables cloud computing at the edge of the cellular network and can be used for content distribution at public areas or for businesses, since new content and a growing number of connected devices will lead to increased demand on wireless networks. As more use cases are introduced to VR, network bandwidth and latency of the network becomes especially important for more immersive real-time experiences that will drive the VR adoption. China Mobile and Huawei are testing VR broadcasting over a 5G network, including network slicing. China Telecom is working with Nokia and Intel to leverage edge cloud, Artificial Intelligence (AI), and machine learning for the delivery of new 5G VR/AR services for industries and consumers.

Build 5G Ecosystem with 5G-Ready Devices

RECOMMENDATIONS


Device types and intended use cases will determine the content offered for applications, which comes with corresponding network bandwidth and latency requirements. VR is most commonly used for entertainment, training, etc., in a one-room scale that considers the user’s vision obstruction. A wired tether remains a limitation and annoyance, so ABI Research expects that wireless connectivity will play a vital role in VR adoption.

Operators should focus on market demand and find the right business models to monetize the 5G market. In order to fully implement the 5G network, it is vital to build the 5G ecosystem with 5G-enabled devices ready, such as the case of China Mobile’s and HTC’s cooperative efforts. Government support also plays key role in launching 5G. For example, development in the VR industry for economic growth is part of the Chinese government’s 2016–2020 Five-Year Plan. Finally, the efficient integration of 5G technology to the existing network infrastructure will make the transition go forward more smoothly.

Operators should look at the value outside of the connectivity services—such as offering VR services. VR services can be provided as upgrade video services (e.g., Internet Protocol Television [IPTV]) services, or companies can implement multiscreen live VR platforms of TV and VR terminals to improve user experiences and enhance user loyalty.

Power consumption is still a challenge for VR devices adopting new 5G and Wi-Fi technologies. Chipset providers and device Original Equipment Manufacturers (OEMs) should keep in mind that the integration of either 60 GHz Wi-Fi chipsets or 5G chipsets will not hinder the operating time of devices, as the high-throughput and low-latency requirements are process heavy.

For more information, please read the ABI Research report Augmented and Virtual Reality Device Connectivity Trends and Forecast (AN-2806).