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5G Getting Real in Europe

5G Getting Real in Europe Image Credit: Daniel Krason/Bigstockphoto.com

2020 will see European mobile network operators (MNO) going into the hands-on implementation and adoption of 5G. Figuring out how to extract the first returns on their investments and building partnerships to create new use cases and business models will be the top challenges.

Traditionally, the European mobile communication market adopts new technologies and models in a moderately conservative tempo, after their Asian and American counterparts have validated the newest approaches in practice. This is also true for the adoption of 5G.

#1: 5G adoption: non-standalone mode first

In order to support the primary 5G use case, - Enhanced Mobile Broadband (eMBB) - MNOs choose to update and extend their radio networks using new 5G radio technologies in order to benefit from very high data rates. Upgrading the radio network to 5G New Radio while keeping the 4G core network is referred to as 5G non-standalone mode (5G NSA).

Irina Palade,
Product Manager,
Rohde & Schwarz

This trend will continue and represents the main investment in infrastructure upgrades in 2020 in Europe. Operators are keen to see a return on their investments before diving into more radical and complex implementation of the 5G core. End users with 5G capable phones will benefit from increased data rates and user experience, while the operators will be providing attractive commercial offers to establish a profitable business case for 5G eMBB.

#2: Pilot projects for new use cases and the added value of 5G

In order to encourage the consumers and subscribers to come along on the 5G journey, MNOs will work on creating appealing commercial offers based on increased data rates. At the same time, MNOs are looking for new applications and are monitoring the emerging interests from their subscribers that could use support from a 5G mobile network. This applies, for example, to online gaming that demands increased data rates and small delays for a good playing experience. Although this has proved itself to be a lucrative area for MNOs in Asia, it is still an open question if this is a large enough niche for MNOs in Europe.

As many of the proposed 5G use cases are future facing (e.g. car-to-car communication, remote medical assistance, real-time drone fleet management, etc.), MNOs are looking to identify the use case that can be successful now. Continuous traffic analytics and advanced correlation of traffic data is essential for identifying the changing trends and new interests that are emerging.

2020 will be a learning period for both mobile subscribers as well as MNOs. Customers will look into 5G phones and try out the benefits of the increased access speed. MNOs on the other side will explore the commercial use cases, as well as new partnerships with industry and service/content providers. This way, they will expand from providing mere connectivity to a business model based on comprehensive service and value for their customers. Technologies like deep packet inspection and traffic analytics will reveal lucrative trends and models, guiding MNOs in their strategy choices.

Author

Irina Palade is the Product Manager for the Traffic Analytics product line at Rohde & Schwarz. Irina is responsible for the definition and implementation of product strategies from the concept phase to end-of-life. With her deep knowledge of data analytics, data visualization, reporting platforms, and telecom networks, she is in charge of spotting trends as well as new product requirements and product enhancements for the Traffic Analytics suite. Irina has more than 8 years of experience in product management and holds a master’s degree in Telecommunication Networking.

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