Four years ago, 5G was a curiosity even for the early adopters, but in the last three years we’ve seen enthusiasm around the next-generation network spike and wane. In 2020, major players in the space announced 5G standalone and non-standalone plans with promises of cloud applications that would change the way we work and live.
Four years later, we are witnessing not just waned enthusiasm, but dismay around the lack of a single, “killer” application. Yet, it’s not the absence of the “killer” app that is holding back the 5G opportunity, but the absence of the available 5G ecosystem and network on which to build these applications. The return on investment for carriers is not as clear-cut as they imagined it to be at the start of the decade, but the opportunity is certainly still there for the taking.
In the coming year, service providers can strategically prioritize aspects of their 5G planning to ensure they are in an optimal position to take advantage of all that 5G has to offer:
#1: 5G analytics should play a more important role in 2024
5G analytics should be considered an integral part of a communication service provider’s (CSPs) journey to fulfil a company-wide vision for the success of 5G. By bringing analytics at the core network layer, CSPs can start to think not only in terms of network optimization with insights, but also into leveraging analytics for new revenue streams in their monetization strategy. This would involve thinking outside of the 3GPP box as the current 3GPP release 17 5G core analytics are still fairly limited when it comes to new revenue generation.
Analyst firm Analysys Mason predicts new use cases that leverage intelligence built on data sets as well as the monetization of data will continue driving the need to capture, manipulate, and manage data. Revenue in this segment is projected to increase at a compound annual growth rate (CAGR) of 10.2%.
With the 4G network incapable of addressing exponentially increasing user demands network analytics (specifically the Network Data Analytics Function) comes into play. It allows for CSPs to exercise multiple options to manage and realize the benefits that arrive from the influx of data. Based on the journal published by IEEE, network analytics provides operators not just with the basics of analytics for 5G but also the functionality to close the automation loop so that CSPs can better reap their efficiency goals.
#2: Policy, charging, and billing will be critical for 5G monetization
As CSPs experiment with new ways to monetize 5G, the concept of value-based offers that combine content, services, and applications with 5G speed tiers has been popular in parts of the world like JAPAC. In 2024, this trend is expected to pick up steam in other regions like Western Europe and North America. As 5G Standalone (SA) rollouts continue, such offers will expand to incorporate new experience pricing variables such as latency, and there will be more B2B-targeted offerings. In preparation for monetizing future B2B2X business models that expose a programmable 5G network and analytics, CSPs will focus on being able to rapidly launch value-based offers spanning policy and charging while providing financial visibility at any stage of the revenue lifecycle in predominantly B2C and B2B models.
#3: Operators will prioritize signaling network functions as 5G standalone networks launch
According to GSMA’s Q2 5G in Context report, 40 operators have launched or deployed 5G standalone networks, with 14 more expected to launch by the end of 2023. By 2025, 5G networks are likely to cover one-third of the world’s population. The impact on the mobile industry and its customers will be profound. 5G SA will be meaningless unless done properly. Given the critical impact of control plane signaling to service quality and the user experience, which underpins the value proposition for 5G use cases, operators should prioritize best-in-class and future-proof functionalities in their 5G SA planning.
As CSPs look to accelerate SA deployments to deliver on the full value of 5G, it’s important to consider the interplay of cloud native and SBA core networks with the security, interoperability, and service enablement implications they bring. As the “brain” of a 5G core network, signaling directly impacts an operator’s network business. It is essential for managing traffic, maintaining network integrity, security, and optimizing use of network resources. It enables the design of differentiated services and the use cases 5G SA is designed to support, such as high-bandwidth video streaming, massive IoT and industrial automation, vehicle-to-everything communications, mission-critical services, and network slicing, among others.
More than a third of operators surveyed by Heavy Reading claim they plan to deploy at launch or close to launch, with nearly half stating signaling functions will be launched within the first two years of deployment.
#4: Programmable network platforms will underpin the success of carrier exposure to support the monetization of 5G networks and beyond
Carrier exposure initiatives took a big step forward in 2023, from the launch of the Open Gateway Initiative and CAMARA APIs to partnerships and showcases of API-based use cases. While the concept of standardizing APIs for the developer community is encouraging, the industry is still far from the wide-scale adoption of these APIs fueling new and innovative products and services.
In the coming year, we can expect carrier exposure strategies to take small steps forward, primarily through service providers foraging strategic partnerships to identify new use cases and define new APIs. Additionally, the industry will continue to grapple with key questions, including what the API monetization models should be and whether or not a neutral third-party host is essential to scaling API adoption across the industry. However, this can only be achieved with the widespread adoption of cloud native networks and cloud-based technologies, and operating cloud native programmable network platforms will require significant investments in data management and network analytics tools.
Setting the foundation for 5G success
In the coming year, operators will be challenged to mitigate the risks of uncertain ROI with 5G standalone. However, operators that take the leap of faith to invest in advanced 5G capabilities before the revenue opportunity is clearly defined will have greater access to the high-value business opportunities as they inevitably arise. As 5G standalone deployments pick up speed, cloud, analytics, signaling and monetization should be prioritized by operators interested in leading the market in this new era.
