Ericsson and Philips: Triggering a new business model for smart lighting

Ericsson and Philips, one is the pride of the communications industry, and the other is the lighting giant. When the traditional demand for lighting hits the mobile Internet, street lights can be derived from new business models.

Ericsson and Philips have jointly developed an LED street light with a small mobile base station - it sounds very wrong? But this gadget can solve two problems that are currently faced in big cities: the first is the burst of mobile data traffic, and the other is to cut unnecessary energy consumption. The two systems are called the Zero Site.

Data needs and energy needs

The popularity of mobile devices is unstoppable. Secondly, after 4G, the consumption of data traffic in the entire urban area will inevitably double, which will make the originally laid communication infrastructure unbearable. How to do it? Increase the density of base stations - provide more data nodes in a smaller, denser way.

But for communication equipment manufacturers, the biggest question is where are these devices located? The street lamps are highly popular, the power supply facilities are complete, and the distribution network in the city is developed. Therefore, it is a good choice for equipment manufacturers to place the base station here.

On the other hand, Philips has been pushing the concept of intelligent lighting in recent years. Its latest generation of LEDs claims to be 50-70% more energy efficient than traditional sodium lamps, and the energy efficiency of streetlights will be even higher after adding IntelliSense control.

Frans van Houten, CEO of Philips, gave a concrete example: If a street sensor is used to detect the flow of people on a road, the street light will always turn on when the flow is large; when it is two or three in the middle of the night, you can close part of it instead of Work in the same state all night.

Lighting equipment can also become a service

Philips CEO Houten and Ericsson CEO Vestberg came up with the idea of ​​cooperation about a year ago. At Zero Site, Ericsson's transceivers are placed on top of the streetlight pole along with Philips' smart light bulbs. The addition of the two systems will greatly change the mobile network status of the global TOP cities.

At yesterday's MWC release, the two parties stated that Zero Site not only saved the energy consumption of government departments, but also that this part of the equipment could be converted into an income. Because Ericsson is the number one communications equipment supplier in the world's top 100 cities, at least 2-3 operators in a city use their equipment. The government can use this to rent out these “street lights” to operators.

For the government, there are two remaining problems in accepting this streetlight system: one is to upgrade the cost of the entire streetlight system, and the other is to hand over the entire city's mobile communications infrastructure to the hands of the two companies – this Control is really difficult to control. Zero Site also needs a fully competitive market.

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