 Live from Silicon Valley, it's theCUBE. Covering Mobile World Congress 2017, brought to you by Intel. Hey, welcome back everyone. We are here live in Palo Alto, California for special two days of Mobile World Congress. We're on day two of a wall to wall coverage from 8 a.m. to 6 p.m. Really breaking down what's happening in studio and going to our reporters and analysts in the field. We'll have Peter Jarage coming up next and we're going to get on the ground analysis from the current analysis now with global data. But next we have a segment where I had a chance this morning early in the morning, my time, top of the morning, Tuesday in Barcelona, which was hours ago. I had a chance to speak with Caroline Chan and Dan Rod Regas and I wanted to get their opinion on what's happening and I asked Caroline Chan what's the biggest story coming out of Mobile World Congress. This is what she had to say. So, last year, this time, the people coming in, there's a lot of question about 5G technology. Is it real? Can they really pull it off? You know, 3G, 4G, it's a little bit of whole-harm. But this year, I would say when I look around, not just in our booth, everybody else is with them. I'm also looking to, people will talk about this as a faithful. I was there the panel last night with Orange and AT&T and Telefonica. I get a conversation switch from real therapy of 5G to solutions. So, I look around in our booth and the next door, in Verizon, there's a lot of cars autonomous driving. We had, that was Friday, in Naples Smart City, Smart Home. It becomes from technology to solutions. And then, in the last session, about acceleration of 5G, there was an announcement about the 5G NR and a long, whole bunch of car to talk about acceleration. It's really becoming, how do we quickly get out there? And then the other thing I've read is about AI. How does AI now, because 5G becomes enabler? Like AI in the cloud, in all of analytics, the 5G can now, can actually now be able to bring that into the cloud. So AI becomes a buzzword. I just read the SKT CTO with our MWC Live TV, you can see on the venue. And about AI and 5G transforming the mobile industry. So it really becomes a much more of a solution oriented. No, I can't agree with Caroline Moore. There's a tremendous amount of excitement around 5G as well as network transformation in this show. And the two things are really becoming linked. So Caroline mentioned a few of the youth cases out there on 5G. So again, lots of autonomous driving, lots of smart home, lots of smart city. I personally had a great time hanging out in our smart home demonstration earlier. But I think the key linkage of all those youth cases is that the network needs to become more intelligent, more flexible, and definitely more agile to be able to support this wide variety of youth cases. And we're seeing this being really echoed back by not only operators, but a lot of the OEMs and telecommunication equipment manufacturers really rallying behind NFD and truly the path to 5G. Take a minute, guys, to explain the 5G revolution and why it's not just an evolution from 4G. What's the difference? I mean, what is the key enabler of 5G and what does Intel have that's different now than it was before? So you imagine 3G is all about getting a better voice and also a little bit of SMS. And 4G is a little 5G or 3G on steroids. Now 4G has all these, you can go to internet and download all kinds of things. 5G takes that to the next level. So 2G, 3G and 4G is about network build for the masters. If you think about it, it's like a general purpose network. So when you build it and then if somebody vertical says I want to make this in my private network, take my enterprise, it's the best effort basis. So either it's too hard or too hard. So what that means is the operator will wind up probably either giving you way too much but not able to recover the investment or they give you not enough and you wind up with a bad user experience. 5G fundamentally changes it. Why is it changing in the standard itself that's undergoing in a 3GPP? It actually have a different type of scheduling algorithm. We want to fit the different use cases. So for example, if you're doing a mission critical IoT versus a massive connected IoT, you'll get a different, very different protocol. You strip out some of the heavy amount of signaling that you typically need for mission critical or mission for something that's just there like small cities, traffic light changes, that kind of information you don't need that to dedicate a whole bunch of bandwidth. So you treat something with a different characteristic natively, different protocol itself. So that's a fundamental shift from the mindset of what we always had. So that is a technology enabled. The second thing is that is a network today, thanks to all the network transformation that everybody's being on. It's much softer and flexible. It moves away from a single purpose, a built hardware to something that's much more flexible such that you get enabled by something like a network pricing. So asides for enhanced mobile broadband, for ARPR, we're different. There's something for auto driving, for surgery, they have to say small cities. So if they make the network fundamentally different, the area interface itself is much more flexible for different type of applications. And then not to mention that we have different type of spectrum from the traditional sub three gigahertz to sub six, and now to millimeter waves. We open up a whole swath of spectrum to allow for a much, much bigger bandwidth at things like cable aggregation. It really starts, it really will change the game. Thanks Caroline. So I think that, you know, at a high level, I think what Caroline was pointing out is that the wide variety of use cases with 5G will stretch and pull the network in all sorts of directions. Essentially, there'll be different use cases that require, you know, blazing fast network speed plus massive amounts of bandwidth, but some use cases already also require very low latency. So when you think about all the variety of use cases, the best way to truly ensure you're meeting the user experience and also delivering the right economic value for the industry is to move to more intelligent and a flexible network. And as Caroline mentioned, it is going to be software defined. And when you think about some of the products that we're investing in, in the data center group for networking, of course you think about Intel Xeon processors. These processors are going to be found in number of servers around the globe and customers are using these for a variety of virtual network functions. Really everything ranging from the core network to the access network to newer use cases such as virtual TV. In addition to this, we did announce some additional products that will be made available later in the year. This is the Adam C3000 series as well as the Xeon D1500 network series. Both of these are SOC. And when you think about 5G, you do think about the mix of centralized and distributed deployment and you think about that network edge becoming smarter. So these types of SOC are very critical because they provide excellent performance density at the right power level. So you can have a very intelligent edge of your network. Just to follow up on that, it's interesting. We had a conversation yesterday in the cube around millimeter wave, CBMA, all the different types of wireless. And I think what's interesting is you have some use cases where you have a lot of density and some cases where you need obviously low latency but you also have internet of things, right? A car for example, you could say we were discussing a car is essentially going to become a data center on wheels where mobility is going to be very important and might not need precise bandwidth per se but more mobility and in some cases you'll need more bandwidth. And also as internet of things comes on, whether they're industrial devices, the notion of a phone being provisioned once and then being used is not the same use cases, say IoT, which you could have anything connected to a network. These devices are gonna come on and offline all the time. So there's a real need for dynamic networks. What is Intel's approach here? Because this seems to be the conversation that most people are talking about that's happening under the hood. That's the true enabler around bringing us real mobile edge. So there's a couple of things that we're doing. Number one, we use a concept called flex-tron-flex core, which is a server-based platform that is with other varieties, technology that's being applied to it, lots of other ways, real time virtualization, dynamic resource sharing and reconfiguration we're able to support what you just described and provide a flexibility for different type of scenario. And then the other thing that they're building to the 5G phone that we're slicing allows you to slice up to prepare the right resources for the right use cases, including the core part of it. So for example, HPE here in our booth is demonstrating what you look like, looks like a server, walks like a server, it is a server and it has a RAM, virtual PC, it has orchestration, it has mobile edge computing, it will become a network in a box. So that gives the ultimate freedom to support the service providers and enterprises and to apply all the 5G different scenarios. Final question guys, is market readiness through partners and collaboration? Intel obviously is the leader Intel inside. The main story we've been hearing at World Congress is end-to-end, fortunate a great piece with Intel CEO talking about the end-to-end value in the underlying architecture. It all runs on Intel, it works better. It brings up the notion of market readiness and the ecosystem. What are you guys doing to make that ecosystem robust and vibrant because Intel can't do it alone, you're gonna need partners' thoughts on how you guys are accelerating it and really the market readiness for 5G and just timing in your mind when all the fruit comes off the 5G tree, if you will. So we started with a child this year, so 2017. We're gonna be able, we're working closely with partners like Ericsson, Nokia, it's all announced in Cisco and we should be seeing early deployment coming up and I really think the widespread commercial probably is more like 2019, 2020 timeframe because of some of the standardization, et cetera. Would you think? Yeah, so that's a great summary, Caroline. I think the key thing that we're releasing at Mobile Congress and things that we're investing in, so first, as you mentioned, it definitely takes a village to pull off the network transformation in the movement to 5G and I think the great thing is about the network side, because the network is becoming much more pliable, more software-defined, more resilient, more agile and it's software-defined. You can really invest in many of these innovations we've been discussing today now. So we're seeing a lot of folks start investing in Flexcore, Network in a Box, Mobile Edge Computing, et cetera. So you transform your network now, utilizing network function virtualization and then you have a sturdy foundation when all the 5G use cases come online in the next few years. Guys, final question, what power demos are you showing? You guys usually have great demos on the floor. Mobile World Congress, a lot of glam, a lot of flair at the show. Great question. We have a number of super demos here. We have a smart and connected home which showcases all sorts of Intel wireless technologies found on the gateway as well as other devices. We're showing a smart city, as you know, with 5G and it's blazing fast speeds, capacity and lower latencies. It's truly gonna change the urban landscape and we're also showing augmented virtual reality in a few different demonstrations and one definitely caught my eye and I was pretty excited about it. In our FlexRAN demo, we were showcasing augmented virtual reality, actually viewing a skier going downhill and it was pretty exciting. I had a great time. I can't wait to, in a few years when 5G's out there and I can use augmented virtual reality to watch a number of sporting events and range of different college football to my favorite sport which is surfing. What's next for 5G? How are you guys gonna roll this out? What's the big plans post-Mobile World Congress? Oh, we have, so like I mentioned, we have trial plans through our partners 2017 and then we're also participating in the Winter Olympics showcase through, again, through our customers. There's activities happening in China that's been announced. So I think we're gonna be in a lot of places. You gotta see us in 5G. Winter Olympics expect to get the downloads in all the video in real time on 4K screens very much. Thank you very much. We expect things to see some good bandwidth on the Olympics, I'm sure. Hey, thanks, John. This was great, John. It was fun. Thanks, John. Thank you. Caroline Chan and Dan Rodriguez from Barcelona calling in with all the details. I'm John Furrier. We'll be back with more live coverage for Mobile World Congress after the short break.