Focus on the Long-Term and Resist Short-Termism Afflicting Corporate Behavior

Photo of Larry Fink: BlackRock

Laurence (Larry) Fink, Chairman and Chief Executive Officer of BlackRock, a New York, N.Y.-based investment firm, sent his annual Corporate Governance Letter to chief executives at S&P 500 companies and large European corporations. Mr. Fink's letter encourages corporate leaders to focus on creating long-term strategies and resist "the powerful forces of short-termism afflicting corporate behavior." While you can read the letter in its entirety, there are a few points worth discussing in this post.

The lack of transparency and openness on Wall Street has long been a concern of mine during my professional career. I am pleased to read Mr. Fink's message "that companies have an obligation to be open and transparent about their growth plans so that shareholders can evaluate them and companies' progress in executing on those plans." Mr. Fink continues to say: "We are asking that every CEO lay out for shareholders each year a strategic framework for long-term value creation. Additionally, because boards have a critical role to play in strategic planning, we believe CEOs should explicitly affirm that their boards have reviewed those plans."

I spend a significant amount of my time reading reports issued by publicly-traded companies as required by the U.S. Securities and Exchange Commission and I am routinely disappointed these companies do not address management's vision and future plans. Therefore, I find encouragement in Mr. Fink's words:

Annual shareholder letters and other communications to shareholders are too often backwards-looking and don’t do enough to articulate management’s vision and plans for the future. This perspective on the future, however, is what investors and all stakeholders truly need, including, for example, how the company is navigating the competitive landscape, how it is innovating, how it is adapting to technological disruption or geopolitical events, where it is investing and how it is developing its talent. As part of this effort, companies should work to develop financial metrics, suitable for each company and industry, that support a framework for long-term growth. Components of long-term compensation should be linked to these metrics. 

Mr. Fink also addresses how environmental and social factors are impacting corporate long-term plans:

These issues offer both risks and opportunities, but for too long, companies have not considered them core to their business – even when the world’s political leaders are increasingly focused on them, as demonstrated by the Paris Climate Accord. Over the long-term, environmental, social and governance (ESG) issues – ranging from climate change to diversity to board effectiveness – have real and quantifiable financial impacts.

"At companies where ESG issues are handled well, they are often a signal of operational excellence."

It is too easy to blame companies for being too focused on the short-term; "investors, the media, and public officials have a role to play," according to Mr. Fink. "In Washington (and other capitals), long-term is often defined as simply the next election cycle, an attitude that is eroding the economic foundations of our country" and "public officials must adopt policies that will support long-term value creation."

Lastly, "Companies, for their part, must recognize that while advocating for more infrastructure or comprehensive tax reform may not bear fruit in the next quarter or two, the absence of effective long-term policies in these areas undermines the economic ecosystem in which companies function – and with it, their chances for long-term growth."

What are your thoughts about Mr. Fink's letter?

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

CES 2016: How to Get From Seed to Series A

Photo: Techstars

During my visit to CES 2016 in Las Vegas, Nev., I had the opportunity to attend a panel discussion hosted by Techstars titled "How to Get From Seed to Series A." Moderated by Techstars' Ari Newman, the panelists included Anjula Acharia-Bath of Trinity Ventures, Adam D'Augelli of True Ventures, Jenny Fielding of Techstars, and Nihal Mehta of ENIAC Ventures. While you can listen to a recording of the full panel via SoundCloud, there are a few items worth discussing in this post.

In his blog post summarizing the event, Mr. Newman notes: "One of the themes that came out of the panel was that Series A is still about the overall story. Metrics do play a part, but the investors have to share the vision and the long term potential about a huge return at this stage."

While I agree with the importance for early-stage companies telling their story to potential investors since metrics may not be plentiful given the short market traction of the company, the company's founders must still present key performance indicators (KPIs) for the short- and long-term future. In my experience, while investors understand that metrics may play a small role when evaluating the worthiness of making an investment in an early-stage startup, they also want to know the founders are thinking about the future through measured results.

Photo: Techstars

The panelists collectively agreed that seed-funded companies are seeing a more competitive environment in attracting investments from early-stage investors. This, in my opinion, may be the result of a volatile investment climate, a growing number of startups looking for funding, or a combination of the two. Regardless, founders must do their homework and understand the investment behavior and interests of prospective investors. "Do your VC research deeply and make sure they are a fit on paper so you don't waste time," Mr. Newman wrote.

Ms. Fielding provided a very important piece of advice for entrepreneurs: Develop your relationships with potential investors prior to requesting money. It may take a year or two of develop a business before the point outside funding is necessary. Entrepreneurs should take this time to develop relationships with advisors and potential investors.

The previous sentence leads to another point, which was addressed by Ms. Acharia-Bath: "Don't ever tell someone that you are raising money because the moment you tell them you are raising money, [the investor] thinks you are selling to them. And that always works against you." Rather, Ms. Acharia-Bath continued, "if you ask for money, you get advice. And if you ask for advice, you get money." I completely agree (with both points)!!

Lastly, a panelist noted, if a business does not have enough cash to sustain its operations for more than six months, then the owner(s) need to focus on raising funds from investors.

What advice would you give to an entrepreneur seeking funding for their enterprise?


Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

How will the Global Economic Environment Impact Key Industries in 2016?

The Economist Intelligence Unit published a report, Industries in 2016, that explores how the global economic environment will impact key industries in the coming year. The report provides analysis and forecasts for six industries: automotive, consumer goods and retail, energy, financial services, healthcare, and telecommunications. This post focuses on aspects from the report's discussion of the telecommunications industry.

The report's opening paragraph says, "To prosper in 2016, companies must prepare for volatility in emerging markets, parsimony among consumers and governments, tightening regulations and yet more digital disruption." And regarding the telecommunications sector, this industry "is no stranger to disturbing change and 2016 will bring more of it."

The EIU report is correct to note that "with consumers increasingly accustomed to being connected at all times, operators will have to invest mightily to keep them happy." The report mentions major investments by two multinational telecom players seeking to increase connectivity among its customers while, at the same time, increasing its customer base: Vodafone's £7 billion modernization program called "Project Spring," which is "aimed at improving connections on its mobile networks." And Indian operator Bharti Airtel's 'Project Leap,' a US$9 billion investment over three years that "will upgrade legacy networks and thousands of base stations, build indoor networks and make its fixed broadband lines faster."

While internet access may be ubiquitous in the industrialized world, billions of people in emerging and developing countries still lack internet access. "Another aim of operators' investments will be reaching the swathes of the global population for whom internet access is fleeting and unaffordable," the report explains.

Furthermore, "The targets for 2020 set out by the International Telecommunications Union (ITU) include connecting more households and making telecoms services more affordable for consumers. Hence operator efforts to boost both the take-up and affordability of internet access, whether via smartphones or traditional broadband connections." And mobile broadband, through the increasingly rapid deployment of 3G and 4G connections, is widening access to mobile broadband in developing markets. In fact, 2016 internet penetration globally "is forecast to surpass 50 users per 100 people for the first time."

The internet of things (IoT), which are networks of objects linked through embedded connectivity, continues to be promoted as the next big thing. "Still," according to the report, "in 2016 companies across more industries will become more aware of its many potential applications, as the increased sophistication of 4G technology spurs the market for connected devices." Device makers, and smartphone manufacturers in particular, are facing margin pressures and decreased sales as a result of market saturation and intense competition. Those companies will need to effectively capture revenue the IoT market is expected to generate in 2016.

With respect to the continued rise of global e-commerce, the EIU report notes:

Singles Day, on November 11th, is the largest online shopping date in the world, with US$14.3bn sales in 2015 thanks chiefly to its popularity in China. Yet Singles Day could easily follow Black Friday, originally a US-only event, to go global. The force behind it, Alibaba, is expanding aggressively overseas, where ethnic Chinese are already catching on. An even earlier start to the holiday sales season beckons.

Lastly, "The popularity of mobile video owes much to technological advances like bigger and better smartphone screens, and faster internet connections." Not just established companies like Facebook and YouTube, but Periscope and Vine are offering live video feeds. "Together with advertisers, these companies will seek to profit from the coming march of cheap 4G connections across India and other emerging markets."

The EIU says its report will help business leaders "pinpoint key issues and trends that will enable you to influence strategic decision-making and answer vital business questions for your organisation in 2016." What key issues and trends are valuable to your business? Are there issues affecting your business not covered in the report?

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

Observations from the Eureka Park Marketplace at CES 2016

I attended CES® from Jan. 5-9, 2016 in Las Vegas, Nev. During my visit to the internationally renowned electronics and technology trade show, I had the opportunity to visit with several startup companies exhibiting in the Eureka Park Marketplace at CES®. Eureka Park is promoted as "the flagship startup destination at CES, providing a unique opportunity to launch a new product, service or idea."

500 companies exhibited at this year's Eureka Park Marketplace, up from 375 in 2015. According to an announcement by the Consumer Technology Association (CTA)™, which owns and produces CES®, over 1,100 startup companies "have exhibited in Eureka Park since its inception in 2012" and "at least 100 of these startups have been funded at $1 million or more. Eureka Park created a leaderboard that provides a ranked list of those companies who received funding.

This year's Eureka Park had a strong representation from outside the United States. Among the 500 startup companies from 29 countries, "more than 50 percent of exhibitors coming from outside the U.S. New countries represented in Eureka Park in 2016 include Austria, Czech Republic, Greece, Netherlands, New Zealand, Russia, Taiwan, Turkey, and UAE. At the show, Eureka Park is segmented by specific verticals such as wearables, smart home, health and sports tech, 3D printing, audio and video and virtual reality."

Among the hundreds of exhibiting companies, I found particular interest in a company called ECHY, which has developed an environmentally-friendly alternative to electric lighting during the daytime by capturing natural light on the outside of buildings and brought inside by fiber optic cables. According to the company's website, "The idea of using fiber optics to transport sunlight to the inside of buildings began in the 1980s. It was, however, at the time, too expensive to be produced on a large scale." The company's founder's solution, in 2010, has enabled the democratization of natural lighting by fiber optics. They launched their idea while studying at the National Polytechnic School in Paris and patented their technology in 2012.

The Champs-sur-Marne, France-based company further explains that "During the first year, the ECHY team were working on Research and Development at their school in Paris, where they created their first prototype and product: Eschysse. ESCHYSSE has been available on the market since 2013, and marks the commercial beginning of ECHY." The company's team currently consists of six individuals together engineers, researchers and sales representatives.

The  company provides the following reasons on why to use its technology:

1. Benefit from the positive impacts natural light has on our health and well-being;
2. Make the most of underexposed areas;
3. Make your building more energy efficient;
4. 100% sustainable and green technology;
5. A modular system that can be adapted to any room; and
6. Constant lighting even it isn't sunny.

ECHY produced a brief video that explains how its panels are fixed on a tracking system, which enables them to absorb sunlight during the day and then transport it, via fiber optics, to the inside of buildings.

I also enjoyed visiting with Well Being Digital (WBD101), which created "the smallest heart measurement earbud design." According to its website, the Hong Kong-based company "aims to enable affordable & accurate underlying technologies for mHealth/wearable devices." Among the three platforms or devices, ActivHearts™, MoGo™, and EarTaps™, the Hong Kong-based company demonstrated, I found interest in ActivHearts™, which is a heart rate measurement technology using photoplethysmography (PPG) that can be applied to earphones and wrist watches.

WBD101's website further explains that "one of the challenges of PPG technology is that the PPG sensors pick up a lot of noise when the user is exercising, as it is very sensitive to motion. WBD101 technology uses multiple source and sensor pairs and advance digital signal processing to remove these motion noise." Moreover, "The latest generation of ActivHearts™ makes use of Bluetooth Smart technology (BLE) that means you can easily have your heart rate information displayed on your smartphone apps."

WBD101 produced a video for CES 2016 highlighting its ActivHearts™ technology.

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

Mexico's Growing Mobile Economy

From January 2-5, 2016, I attended the AT&T Developer Summit in Las Vegas, Nev. Among the several track sessions offered throughout the conference, I found particular interest in a session titled "Understanding the Market Opportunities in Mexico" featuring Christina Ruiz de Velasco, Executive Director of International External Affairs for AT&T Mexico. Ms. Ruiz de Velasco's presentation, "Mexico: Regulatory Reforms Driving Competition and Connectivity," focused on AT&T's market entry in Mexico, Mexico's telecommunications market structure, telecom and media reform in Mexico, and market trends in Latin America's second largest economy.

During her presentation, Ms. Ruiz de Velasco noted that revenue from Mexico's mobile segment represents 57 percent of the telecom sector and is growing at faster rates than the industry as a whole. The mobile industry is expected to generate revenues of 262 billion pesos in 2016, up from 246 billion pesos in 2013.

The rise of mobile revenue is a result of an increase in mobile subscriptions. According to Ms. Ruiz de Velasco, mobile broadband subscriptions (16.6 million) overcame those of fixed broadband (16.0 million) in 2013. Mobile broadband subscribers will reach 32.6 million in 2015.

In addition, Mexico had just 2.7 million mobile broadband subscriptions in 2010. Smartphone penetration over total mobile lines has doubled in the last three years and the growth has been driven by the increasing variety of devices offered in the market and price decreases due to brand competition and technological development.

With respect to tablets, Ms. Ruiz de Velasco said that "although the tablet market in Mexico remains small, forecasts show higher consumption of mobile services." The growing adoption of tablets will also accelerate the use of mobile broadband. Mexico's tablet penetration rate for the third quarter in 2015 is estimated to reach 14 percent, which is well-above penetration rates in Brazil and Argentina at 11 and 10 percent, respectively.

Regarding app adoption by Mexican consumers, Ms. Ruiz de Velasco explained the Mexican population shows digital skills for the use of all mobile services and application adoption is highly correlated with expansion of mobile device penetration (i.e., smartphones and tablets). The growth rate for mobile app adoption in Mexico is estimated to be 52 percent while the growth rate is estimated at 65 percent in 2015.

During the Q&A session following the presentation, I asked about the use of mobile applications by Mexican enterprises. While very few enterprises in Mexico are using mobile apps, Ms. Ruiz de Velasco predicted this trend will reverse course as the mobile economy continues to grow and Mexican enterprises seek to gain a competitive advantage at home and abroad.

I agree with Ms. Ruiz de Velasco compelling argument that app developers should consider developing mobile applications specifically designed for the Mexican market. While other emerging markets such as China and India are significantly larger markets with respect to population and number of smartphone and tablet users, Mexico's gross domestic product is higher on a per capital basis. In addition, Mexico has a young population that is seeking to learn valuable skills necessary to succeed in a vastly global economy.

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Learning about India by Starting with the State-Level

As China's economy continues to decelerate, multinational companies may soon be looking at business opportunities in India--the world's fastest growing economy as measured by gross domestic product (GDP), according to the Center for International Development at Harvard University. "India tops the global list for predicted annual growth rate for the coming decade, at 7.0 percent. This far outpaces projections for its northern neighbor and economic rival, China, which the researchers expect to face a continued slowdown to 4.3 percent growth annually to 2024."

In my limited experience of working in India, I learned that the country with a population of 1.3 billion within a federal union of twenty-nine states and seven union territories contains a myriad of complexities best understood at the state-level.

Amit Kapoor, Ph.D, president and CEO of the India Council on Competitiveness and honorary chairman of the Institute for Competitiveness, was interviewed by the Seattle, Wash.-based National Bureau of Asian Research about understanding the competitiveness of India's states including key trends, investment patterns, signs of progress, and suggestions for improvements in state-level competitiveness.

As companies look for opportunities in what is expected to become the world's most populous country by 2022, according to the United Nations, I found particular value in Dr. Kapoor's comment:

For decision-makers in particular, focusing on how to improve the competitiveness of individual states can ultimately make [India] more prosperous. This bottom-up approach provides a more detailed look at the distinctions between high- and low-growth states; identifies areas that have greater firm concentration, network effects, openness, and integration into the world economy; and reveals the characteristics or policy measures that led to each growth pattern. Therefore, it is extremely important to dig deeper than country-level analysis and actually focus on what is happening at the regional and state levels in bigger economies.

In addition, Dr. Kapoor notes that infrastructure and urbanization is a challenge India will need to address:

India's urban density is one of the highest in the world and will continue to increase as more people flock to the cities. China just witnessed a major migration during its period of economic dynamism, and India will see a similar scale of migration over the next fifteen to twenty years. How the government manages this massive shift of people will greatly affect the country's competitiveness and economic reform efforts.

Dr. Kapoor's interview provides good insights on how to accurately learn about India by starting with the state-level of what is now the world's fastest growing economy. Do you agree? What would you add?

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

How Technology is Transforming Business Functions

Sponsored by Microsoft, the Economist Intelligence Unit published a paper, Changing roles: How technology is transforming business functions, that explores how the workplace is evolving and the effect of technology on how people collaborate, form global teams and make decisions across various business functions. The report is based on a global survey, advisory board findings and in-depth interviews with industry experts.

The report issued four key findings as outlined in the Executive Summary:

1. Work will become more complex. Individual workloads will increase, driven partly by the need to respond to rapidly swelling quantities of real-time data from automation of all kinds and from greater demands for collaboration. Thirty-six percent of survey respondents expect work to become more complex and 26% of respondents, across all functions, believe it will involve much greater amounts of data. Globalization and the growing interconnectedness of companies and sectors will also multiply the number of variables companies must take into account.

I agree with page seven of the report: "Technology can enhance job satisfaction." I can also relate to the fact that:

Technology helps companies be more proactive, predictive, productive and personalized in their approach. Organizations can use it to enter new markets more efficiently, develop innovative business models, introduce products and services, and forge closer links between IT and lines of business. Cloud computing, for example, is liberating organizations from the need for in-house IT systems, which are expensive, time consuming and difficult to maintain. By using pay-as-you-use cloud services and handing over the management of applications and data to third-party providers, companies can improve flexibility, reduce overheads and benefit from constant cutting-edge technology. [emphasis added]

Cloud computing has allowed my colleagues and I at ROI3, Inc. has liberated us from the need for an expensive in-house IT system. Not having to dedicate financial and time resources to the maintenance of an in-house IT system has allowed my company to focus on activities directly related to revenue generation.

2. Lack of time is the biggest challenge. The ability of technology to help people do more with less does not always help executives save time. Some 45% of survey respondents cite time constraints as their prime problem, with people who feel they are successful in their current role most affected—46% compared with 39% of those who believe they are not successful.

Software tools such as over-the-top messaging, and VoIP services have facilitated the ability for my colleagues and I to collaborate regardless of people's locations. While I still see a great value in face-to-face meetings, I appreciate instant messaging and videoconferencing as powerful tools for long-distance collaboration.

3. Collaboration is crucial. Team-working is the new normal both locally and globally. Thirty-five percent of survey respondents believe work will require co-ordination between more people across multiple functions. Collaboration is the best way to make the most of individual expertise, respond swiftly to business problems and boost competitiveness. HR must optimize use of specialists and freelancers, and employees across functions must work with these temporary colleagues.

Page 12 notes that "millennials, young entrepreneurs and senior people can teach each other." Using technology effectively to facilitate the collaboration of people whom possess diverse backgrounds and experiences is essential for companies of all sizes to succeed.

4. Gaining new technology skills is the best way to advance professional goals. In the face of increased automation and technological advances, all organizational functions recognize the need to keep learning. Nearly a quarter (23%) of respondents include mastering new technology in their top-three ways to achieve career aspirations. Thirty-two percent cite acquiring new skills through education and training as the opportunity most likely to help them achieve their professional goals. This is becoming more important with the rise of millennials who are much more knowledgeable about technology than most of their seniors.

People of all ages must regularly learn new technology skills to remain relevant in a quickly changing world. Recognizing technology is disrupting the workplace, I spend a significant amount of my time learning new technical skills, whether in big data, analytics software and cloud-enabled collaborative applications to improve efficiency, in order to maintain my business as a forward-looking organization.

How is technology transforming your business functions? What new technology skills do you suggest people should learn?

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

Mobile Operator Investments Fueling Innovation and Inclusion Across Sub-Saharan Africa

Sub-Saharan Africa's economic growth over the past ten years was derived from its commodities and natural resources. However, given that China, a key buyer of Sub-Saharan Africa's commodities and natural resources, is experiencing a slowdown in its economic growth, African nations are looking to expand other sectors that will attract investment, increase public finances, improve access to essential services such as education and healthcare, and provide much needed jobs to a youthful population. The GSMA released its latest study on Oct. 8, 2015, which presents the integral role of the mobile economy to the future of Sub-Saharan Africa.

The study's Executive Summary notes: "In 2014, the mobile ecosystem directly employed approximately 2 million people in Sub-Saharan Africa, with the majority working in the distribution and retail sectors and approximately 325,000 employed by mobile operators. A further 2.4 million jobs were indirectly supported as result of the demand generated by the mobile sector, bringing the total to 4.4 million. It is forecast that the industry will grow to support more than 6 million jobs by 2020. The mobile ecosystem also made a contribution to the public finances of the region's governments via general taxation of approximately US$15 billion in 2014."

Furthermore, "The mobile industry remains a key driver of economic growth and employment across the region, making an important contribution given the population growth and high unemployment levels. In 2014, the broader mobile ecosystem generated 5.7% of GDP in Sub-Saharan Africa, a contribution of just over $100 billion in economic value. Migration to mobile broadband and the growth of new services will see this figure increase to 8.2% of GDP by 2020, reflecting how increased access to mobile services generates regional growth and development."

The report correctly explains that "[M]obile technology plays a central role in addressing a range of socio-economic developmental challenges across the region, particularly digital and financial inclusion. Greater digital inclusion will drive economic and infrastructure development, increasing productivity and employment across the economy, and will improve access to vital services such as education and healthcare."

As the mobile industry matures in the coming years, consumers will desire innovative new services and apps. I support the study's assertion in chapter 2.2, "The African app economy": "The rise in smartphone adoption and mobile broadband usage over the next five years will stimulate use of mobile apps, particularly among the increasingly tech-savvy youth segment, and support the emergence of a local app economy that will develop content and services for domestic consumers."

What role do you see the mobile technology sector playing in Africa's economy?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

Defining a Vision and Road Map for 5G Mobile Development

In my previous blog post, I announced that ROI3, Inc. joined ITU's new focus group to identify the network standardization requirements for the 5G development of International Mobile Telecommunications (IMT) for 2020 and beyond. I participated in the first meeting of the ITU-T Focus Group on IMT-2020 (FG IMT-2020) that was held from June 8-9, 2015 in San Diego, Calif. where we "established the overall roadmap for the development of 5G mobile and defined the term it will apply to it as 'IMT-2020,'" according to an ITU press release of June 19, 2015. "The meeting also agreed that the work should be conducted under the name of IMT-2020, as an extension of the ITU's existing family of global standards for International Mobile Telecommunication systems (IMT-2000 and IMT-Advanced) which serve as the basis for all of today's 3G and 4G mobile systems."

Furthermore, "With the finalization of its work on the 'Vision' for 5G systems at a meeting of ITU-R Working Party 5D in San Diego, California, ITU has now defined the overall goals, process and timeline for the development of 5G mobile systems. This process is now well underway within ITU, in close collaboration with governments and the global mobile industry."

60 individuals from 18 countries representing a wide-array of stakeholders from the mobile broadband industry attended the two-day meeting. Among the 33 contributions presented and discussed, one presentation noted that 5G technology will change people’s lifestyle and enrich society through hyper mobile connectivity with projected data delivery speeds in excess of 10,000 megabits per second (Mbps) compared to 450 Mbps and 14.4 Mbps provided by 4G/LTE and 3G, respectively. Another presentation noted how the jump from 4G to 5G is an evolutionary as well as a revolutionary process.

The next step to identifying the network standardization requirements for 5G development, according to ITU's announcement, "is to establish detailed technical performance requirements for the radio systems to support 5G, taking into account the needs of a wide portfolio of future scenarios and use cases, and then to specify the evaluation criteria for assessment of candidate radio interface technologies to join the IMT-2020 family. These new systems, set to become available in 2020, will usher in new paradigms in connectivity in mobile broadband wireless systems to support, for example, extremely high definition video services, real time low latency applications and the expanding realm of the Internet of Things (IoT)."

My colleagues and I are planning to participate in the second FG IMT-2020 meeting from July 13-14, 2015 in Geneva, Switzerland. We will continue to learn how 5G will lead to the development of IoT, cloud computing, virtual reality (VR), and 3D content accessible through a mobile device such as a smartphone, tablet, or smart watch.

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

ROI3 Joins ITU Focus Group to Identify Network Standardization Requirements for 5G Development

I am pleased to announce that ROI3, Inc. has joined ITU's new focus group to identify the network standardization requirements for the "5G" development of International Mobile Telecommunications (IMT) for 2020 and beyond. On May 5, 2015, Geneva, Switzerland-based ITU announced it "has established a new Focus Group to The network studies will be hosted by ITU's Standardization Sector (ITU-T), benefiting from the strength of ITU-T standardization in wireline communications." Led by ​Peter Ashwood-Smith of Huawei Technologies, FG IMT-2020 will hold its first meeting in San Diego, Calif. from June 8-9, 2015, with subsequent meetings in Geneva, Switzerland from July 13-14, 2015, Milan, Italy in September 2015, and Beijing, China in October 2015.

In 2012, according to ITU's press release, the organization "established a programme on International Mobile Telecommunications (IMT) for 2020 and beyond, which provides the framework for IMT-2020 research and development worldwide. ITU's Radiocommunication Sector (ITU-R) is coordinating the international standardization of IMT-2020 systems. ITU-T is expected to play a similar convening role for the technologies and architectures of wireline networks."

Furthermore, this ITU website explains that "'IMT-2020' systems will enable wireless communication to match the speed and reliability achieved by fibre-optic infrastructure. The potential application fields of IMT-2020 systems, in addition to voice and video, span from healthcare to industrial automation, virtual reality, automated driving, and robotic systems controlled with an imperceptible time-lag. One-millisecond end-to-end latency is necessary for technical systems to replicate natural human interaction with our environment, a goal that experts say should be within reach of future networks."

It is believed that 5G will become available in 2020. While a standardized definition does not exist for 5G, large corporations and small businesses in the information and communications technology (ICT) sector must begin to consider how to create opportunities through the next generation of mobile network. It is my intent to have ROI3 be part of the 5G standardization efforts and learn what mobile products and software solutions can be created for the global marketplace. Specific sectors that may benefit from 5G include the Internet of Things (IoT), cloud computing, virtual reality (VR), and 3D content accessible through a mobile device such as a smartphone, tablet, or smart watch.

The ITU notes: "IMT-2020 research and development is underway in a wide range of industry and public-sector bodies. The Focus Group's scope of activity is concentrated in identifying the standardization needs of the wireline elements of 5G networks, building on an analysis of other entities' IMT-2020 studies."

What possibilities do you envision using 5G technology?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.