5G NETWORK & SERVICE STRATEGIES - 2020 OPERATOR SURVEY - Oracle
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P R O D U C E D B Y I N P A R T N E R S H I P
5G NETWORK &
SERVICE STRATEGIES
2020 OPERATOR SURVEY
S P O N S O R S
Introduction
The Heavy Reading 2020 5G Network & Service Strategies Operator Survey is
designed to provide insight into how operators will scale 5G networks and identify
the service strategies operators believe will drive investment and customer value.
Developed in association with the report sponsors, the survey questionnaire was
fielded to respondents in the Light Reading service provider database in January
2020. It was open only to employees of communications service providers (CSPs).
his report analyzes the results The survey garnered a total of 164 At places in this analysis, Heavy
T of the survey in the following respondents who self-identified as Reading compares responses from
thematic sections: working for CSPs. Rogue, and obviously different demographic groups. In
non-operator responses were removed. particular, at several points in this
• 5G Deployment Timelines & Services Respondent demographics are shown report, we compare U.S. and Rest of
• 5G Radio Access Network (RAN) below. Technical, engineering, and World (RoW) responses. Where this is
Evolution network operations personnel from large the case, it is noted in the text. n
• 5G Core Network operators in advanced markets accounted
• 5G Edge Cloud for the majority of the responses. The
• 5G Monetization & Network Slicing U.S. was the dominant region, with as
• 5G Enterprise Services many responses as the rest of the world
• 5G Security Stance combined; however, all major global
• 5G Transport Networks regions were represented.
REPORT AUTHORS
Gabriel Brown Jim Hodges Sterling Perrin
Principal Analyst Chief Analyst Principal Analyst
Mobile Networks & 5G, Cloud & Security, Heavy Optical Networks &
Heavy Reading Reading Transport, Heavy Reading
Gabriel leads mobile network research Jim leads Heavy Reading’s research on Sterling has more than 20 years’
for Heavy Reading. Starting from a the application and security impact of experience in telecommunications as
system architecture perspective, his the NFV-enabled virtualized cloud on an industry analyst and journalist. His
coverage area includes RAN, core, and the control plane and application layers, coverage area at Heavy Reading is optical
service-layer platforms. Key research both in the fixed and mobile core and at networking, including packet-optical
topics include 5G, LTE Advanced, virtual the enterprise edge. Jim focuses on the transport and 5G transport. He also
RAN, software based mobile core, and security impacts that cloud and cloud- authors Heavy Reading’s Metro Optical
the application of cloud technologies to based technologies such as 5G introduce Networking Market Tracker and Core
mobile networking. from a cyber-threat detection perspective, Optical Transport Market Tracker.
as well as the business opportunities
associated with the delivery of security
capabilities via a managed services model.
2 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY
5G Network & Service Strategies Survey Demographics Fig 1. In what region is your organization headquartered? (N=164) US.......................................................57% Canada................................................ 6% Central/South America.................... 6% Western Europe................................. 9% Central/Eastern Europe................... 6% Asia Pacific (including Australia).....10% Middle East........................................ 4% Africa................................................... 2% Fig 2. What is your primary job Fig 3. What are your company’s Fig 4. What type of communications service function? (N=164) approximate annual revenues? (N=164) provider (CSP) do you work for? (N=164) Corporate management......................................15% Less the $50 million.............................................17% Fixed network CSP...............................................15% R&D or technical strategy...................................18% $50 million to $200 million................................... 9% Mobile network CSP.............................................30% Network planning, engineering, operations.....45% $201 million to $500 million................................. 9% Converged Network CSP (fixed & mobile).......45% IT, data center & cloud domain............................. 9% $501 million to $1 billion.....................................15% Cable or satellite CSP............................................. 7% Product management, sales & marketing.......10% $1 billion to $5 billion...........................................12% Other CSP.................................................................2% Other..........................................................................2% More than $5 billion..............................................38% I don’t work for a CSP............................................. 1% Source: Heavy Reading’s 5G Network & Service Strategies Operator Survey, February 2020 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 3
5G Deployment
Timelines & Services
Author: Gabriel Brown, Principal Analyst, Mobile Networks & 5G, Heavy Reading
The commercial drivers for 5G, how fast it becomes a mass-market service, and
how operator service portfolios may evolve to take advantage of the technology
are of great interest to all parts of the mobile industry value chain.
he key findings for this section As was the case in our 2019 survey, Heavy 2019 survey. These results fit with how
T are as follows: Reading asked respondents to identify the operators tended to market 5G in 2019
primary drivers for 5G deployment over 2- – namely, on downlink speed and gigabit
• On a 2-year view, 41% of respondents and 5-year time horizons (Fig 5). performance claims.
said “faster end user speeds” is the
primary driver for 5G, up from 33% in On a 2-year view, the large st group (41%) Over a 5-year view, the ability to “address
Heavy Reading’s 2019 survey. Over said “faster end user speeds” is the new markets & services” climbs to first
a 5-year view, the ability to “address primary driver for 5G, up from 33% in 2019. place in the ranking at 42%, significantly
new markets & services” climbs to “Addressing new markets and services” above all other scores. Operators clearly
first place in the ranking, with 42%. comes second with 28%. “System capacity see 5G investment as focused on how
Operators appear to see 5G technology and efficiency” (16%) and “competitive advanced technology capabilities can be
investment as focused on evolving reasons” (16%) bring up the rear, both translated into compelling services over
their current service strategies in with reduced support relative to our the medium term.
the near term and becoming more
ambitious in the medium term.
• Heavy Reading asked when operators
Fig 5. 2 years 5 years
think more than 25% of their subscriber What will be your company’s primary driver in deploying
base will have a 5G device. 50% of 5G networks, in 2 years and in 5 years? (N=155-157)
respondents expect this to be the case
42%
41%
by the end of 2022, up slightly from
45% in our 2019 survey. This looks like
a bullish view at first glance, but it is in
line with Omdia’s independent estimate
28%
of 28% 5G penetration in the U.S.
during the same timeframe. 23%
• Over a 3-year view, operators expect 20%
some differences between their 4G
16%
and 5G service portfolios, but not 15% 15%
major ones. 43% said their company
will offer a “very similar services
portfolio” while a comparable 45%
believe their portfolio will offer “mostly
common services, with some 5G-only
services.” Only 8% expect to offer Offer faster speeds to Improve system Address new markets & Competitive
“many 5G-only services.” end-users capacity services reasons
4 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY
Fig 6. By what year do you estimate more Fig 7. How much commonality do you expect Fig 8. When do you expect your company
than 25% of your subscriber base will have between your 4G and 5G service portfolio to start offering URLLC (ultra-reliable, low-
a 5G compatible device? (N=158) over the next three years? (N=157) latency communication) services? (N=157)
2020..........................................................................6% Identical service portfolio...................................... 5% In 12 months..........................................................12%
2021 to 2022.........................................................43% Very similar services portfolio............................43% In 12 -24 months...................................................33%
2023 to 2024.........................................................37% Mostly common services, After 24 months....................................................29%
2025 or later...........................................................13% but with some 5G-only.........................................45% Don’t know / no plans at present.......................27%
Many 5G-only services.......................................... 8%
In terms of 5G devices, 50% of tend to come with compromises (e.g., some differences, but not major ones. A
respondents expect 25% or more of their on power consumption, cost, and bugs). large 43% said their company will offer
subscriber base to have a 5G-compatible Looking into 2020 and 2021, newer a “very similar services portfolio” for 4G
handset by the end of 2022 (Fig 6). At first handset models at high- and mid-tier and 5G users, while a comparable 45%
glance, this looks like a bullish view, and it prices will become available in volume. believe their portfolio will offer “mostly
is up slightly from Heavy Reading’s 2019 For example, a 5G iPhone – rumored common services, with some 5G-only
survey. This positive view on 5G adoption for late 2020 – will be important, services.” Only 8% expect to offer “many
perhaps reflects better knowledge of, particularly in the U.S., where iPhone 5G-only services.”
and greater confidence in, 5G device and market share is high.
chipset development timelines. It also In part, this result may reflect that 5G
possibly echoes analyst upgrades to 5G As established earlier, over a 5-year deployed in non-standalone (NSA)
device estimates made by research firms view, operators see 5G addressing mode makes existing 4G services faster
across the board in 2019 and widely new markets and driving advanced rather than fundamentally different. As
reported in the media. For example, the services (Fig 7). sought insight into the discussed later, it may be that a transition
result is in line with Omdia’s independently differences between 5G and 4G service to standalone (SA) is a prerequisite for
produced estimate of 28% 5G penetration portfolios over a 3-year view. A fair service innovation.
in the U.S. during the same timeframe. summary would be that operators expect
A critical factor is handset replacement
cycles for smartphones, which have
lengthened in most developed markets “ULTRA-RELIABLE LOW LATENCY
in the past few years. In some markets
– for example, China and South Korea
COMMUNICATION (URLLC) SERVICES
– there is evidence that 5G can drive an ARE ONE OF THE DEFINING FEATURES
acceleration in handset upgrades. But OF 5G. URLLC REQUIREMENTS WERE
this is not a universal phenomenon; for
instance, there is not yet good evidence
INFLUENTIAL IN THE DESIGN OF THE
of this in Europe and the U.S. This may 5G SYSTEM AND AIR INTERFACE.”
be because first-generation devices
5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 5
Ultra-reliable low latency communication The next question (Fig 8) asked when many URLLC use cases for industrial
(URLLC) services are one of the defining operators will start to offer URLLC – note customers. The R16 standards will be
features of 5G. URLLC requirements the emphasis on the start of services finalized in June 2020; it will take a year or
were influential in the design of the 5G rather than offering at scale – and it so for the functionality to be incorporated
system and air interface. As a result, drew quite a diverse response. A minority into products and then deployed into
the industry is heavily committed to (12%) think URLLC could happen within networks.
this category of services, particularly 12 months and 32% within 2 years (i.e., by
where 5G can be used in cyber-physical the start of 2022). This 2-year timeframe And clearly not everyone is bullish. Over half
systems. These service types cannot be aligns with the expected availability of of respondents think it will be more than
supported on 4G and therefore represent products that incorporate Release 16 2 years before URLLC will be introduced
new business opportunities. capabilities, which are important for (29%) or they do not know or said their
company does not have plans at present
(27%). This accords with a view that URLLC
is still some time from being ready for
Fig 9. What are the top enterprise verticals for 5G over the next 12 to 18 months for broad-based marketing to customers.
additional B2B revenue streams? (select up to three) (N=157)
Another important objective of the 5G
Smart Cities 37%
technical specification process was to
create a system capable of supporting
Media and Entertainment 36% the diverse needs of different industries
and sectors. Accordingly, there is interest
in understanding which vertical sectors
Health 35%
may adopt 5G first and at scale. Heavy
Reading asked operators (Fig 9) about the
Automotive 30% verticals they think will be most attractive
in the near term (12-18 months). Smart
cities (37%), media and entertainment
Manufacturing 28%
(36%), health (35%), automotive (30%), and
manufacturing (28%) lead the pack. Of
Transportation and logistics 21% the top two, smart cities always perform
well in Heavy Reading surveys. One
reason for that may be that this category
Energy & Utilities 20%
incorporates many types of use cases and
thus appeals to everyone. We tend to think
Government 13% that media and entertainment, in second,
is the safest bet because 5G services often
already bundle video, music, and gaming
Finance 13%
with customer plans. n
Retail 13%
Construction and Engineering 8%
Hospitality 8%
Real estate (including Neutral Host) 5%
6 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY
2020: Benefits and
Challenges of 5G Deployment
By Chris Pearson, President, 5G Americas
With the first year of live commercial 5G networks under our belts, we look ahead
at a bright and promising 2020 for wireless. There are very few times when a
new generation of wireless networks comes around, perhaps once every 10 years
or so, so it’s especially interesting to see how 5G is both evolutionary as well as
revolutionary for the world.
y now, many enterprises and dozens of new 5G mobile devices will with narrowband Internet of Things
B consumers understand some of emerge this year as early adopters (IoT) and Cat M1 devices, even while
the basic reasons why 5G is important. As begin to test out what 5G can do. As new licensed and unlicensed spectrum
a radio access technology, it provides the market pivots around new devices bands become available for 5G.
much higher data rates of 1 Gbit/s-20 and capabilities, questions remain
Gbit/s, enabling customers to upload or about whether network operators will be Beyond the radio air interface, modern
download content much more quickly. able to ramp up capacity and coverage wireless networks will also be seeing
Ultra-reliable low latency (URLLC) quickly enough to match the insatiable tremendous improvements to network
improvements in 3GPP’s Release 15 allow demand for data. architecture and compute capabilities.
for much less network lag and delay when The latest 3GPP releases offer amazing
requesting data from the network – a Here, 3GPP offers great hope with an frameworks in which to build networks
latency imperceptible to most humans. affirmative. While 5G end-user capabilities using service-based architecture and
are widely known, less well understood support for radio access network
These realizations have driven the (but just as important) are some of the (RAN) self-organizing networks. They
market for 5G early adopters, even as LTE other capabilities that 5G is offering will support a wide variety of vertical
continues to serve as the global workhorse network operators that will greatly increase applications for automotive, health,
of wireless communications – gaining the progress of network deployments. manufacturing, critical communications
250 million global connections in 3Q 2019, for first responders, and entertainment
according to data from Ovum. By the end For instance, through dynamic industries with New Radio (NR)
of 2019, global 5G connections reached spectrum sharing (DSS), network broadcast and multicast. Beyond these
5 million subscribers. There are 52 5G operators will see a much faster, improvements, artificial intelligence can
commercial networks now live, based more flexible capability to increase now help carriers in their management
on numbers by TeleGeography. With 1.3 the capacity of their networks without and orchestration of network operations
billion 5G connections projected by the end needing to “re-farm” existing spectrum – as well as being tested for usage in the
of 2023, it’s clear that 5G’s rapid ascent is for modern 5G devices. Advanced 5G challenge of small cell siting.
in the cards for the next decade. antenna technologies like massive
multiple input/multiple output (MIMO) With the technical specifications and
So a major story for 2020 will be the and beamforming will greatly expand studies for 5G well underway in 3GPP
proliferation of consumer and enterprise the number of devices that a cell site Releases 15-17, the wireless industry
devices. At CES 2020, the “Year of 5G” can communicate with simultaneously seems poised to explode into the
was touted as a major theme by many – up to 1 million devices per square roaring 2020s. However, stiff headwinds
technology companies. Dozens upon kilometer. Energy efficiency improves continue to blow.
5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 7
less overhead in network management cell siting policies by cities, states, and
for technologies such as carrier municipalities are critical to a country’s
aggregation. leadership in 5G. Thus, cities, states,
and municipalities must work with the
Moreover, additional internationally wireless industry to realize the benefits of
harmonized exclusive-use licenses are 5G for their communities, which will result
needed before shared use options are in greater economic opportunities, better
pursued by governments. From a pure access to critical public safety services,
spectral efficiency perspective, having and improved ability for their citizens and
spectrum uses managed by privately residents to bridge the digital divide and
owned network operators will reduce connect to the internet.
signal attenuation and “cross-talk” and
provide more spectrum capacity in the At the same time, a balance must be
Across the industry, several significant aggregate. Also, having operators looking struck with infrastructure providers,
challenges could slow down the progress after spectrum ensures that valuable such as cell tower owners, utilities, and
of change. These factors generally natural resources are appropriately other owners and managers of public
revolve around two key issues: spectrum managed, new technologies are right of way. In many respects, 5G is not
and cell siting. developed, and usage is maximized. just about a competitive business, it’s
also about the creation of public goods,
From a spectrum standpoint, the Finally, spectrum harmonization and services, and technological progress that
demand for data continues to accelerate, interoperability are significant issues across impact international competitiveness and
so the need for more internationally borders for roaming and economies of national security. It is important to realize
harmonized license spectrum is scale. We must ensure that devices will the costs borne by wireless operators
significant. In general, the industry be able to communicate with each other, will not just be passed along to their
needs more spectrum across a mix of whether one is in Los Angeles or São consumers, but also impact a nation’s
low, mid, and high bands across every Paulo. This means pursuing interoperability entire vital communications network.
region. Specifically, the U.S. has led among equipment, chipsets, antenna,
in the identification and allocation of devices and other network elements. It also With such high stakes, this is an exciting
high band millimeter wave (mmWave) means that each regulatory agency should time for the industry. 5G is just getting
spectrum but needs to continue to establish a cooperative spectrum plan and started. We will continue to have many
address low- and mid-band spectrum transparent spectrum policy that aligns the more conversations about deployments,
allocations. Regulatory agencies allocation of spectrum. benefits, uses, and challenges in the
throughout the Americas should also be future. For now, 2020 offers a bright road
looking to configure spectrum licenses Cell siting challenges continue to be an ahead. We should work together so we do
with wider bandwidths so that there is obstacle for the industry. Streamlined not squander its promise. n
8 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY
The State of 5G Standards Work
for North America
Tom Anderson and Iain Sharp, Principal Technologists, ATIS
Industry-driven specifications are the foundation for the mobile networks that
revolutionized communications in the first decade of the 21st century and will
continue to transform lifestyles and business operations. These specifications
help networks deliver services that span countries and continents and support a
competitive, interoperable market for mobile devices and network equipment.
ased in Washington, DC, ATIS has 3GPP Releases 16 and 17 Are Deep in separate user groups on to different
B been at the heart of creating Development virtual resources.
mobile specifications for the North 3GPP specifications are the basis for
American marketplace. ATIS’ membership creating interoperable 5G systems. Additionally, the 5G system can be
includes network operators and mobile The 5G system is a complete mobile deployed to support all the capabilities
equipment vendors. Increasingly, we also communications platform that delivers of LTE networks, though with limitations
collaborate with vertical industries and three key 5G service categories: on the level of integration with legacy
government agencies that utilize mobile 2G (GERAN) and 3G (UTRAN) radios. It’s
technology. As the North American partner • Enhanced Mobile Broadband (eMBB) important to note that the pure 5G system
in 3GPP, ATIS is responsible for ensuring • Massive Machine-Type doesn’t support circuit-switched fallback,
that 3GPP developments meet market and Communications (mMTC) thus creating an impetus to support the IP
regulatory requirements in the region. This • Ultra-Reliable Low Latency Multimedia Subsystem (IMS).
role includes publishing regional standards Communications (URLLC)
that encapsulate 3GPP specifications. The ambitious goals of 5G and the
The 5G system’s New Radio potential applications of the 3GPP
ATIS is addressing key concerns of (NR) specifications deliver a high platform represent a large body of
companies introducing 5G in the performance and highly configurable work that will play out over several
highly competitive North American radio that operators and vendors can specification releases. 3GPP Release 15
marketplace. These concerns include adapt to meet a wide range of current is the first full set of 5G specifications.
Internet of Things (IoT) performance and future application requirements. After initial delivery of non-standalone
requirements, the use of shared 5G In the standalone (SA) configuration, (NSA) NR specifications in late 2017,
infrastructure, network security, and the NR is linked to a 5G core network 3GPP spent the next two years focused
enabling smart cities and vertical that supports cloud-like deployment on completing 3GPP Release 15, as well
industries to make the best use of 5G. of functions and network slicing to as the 3GPP submission for International
Mobile Telecommunications for 2020
and beyond (IMT-2020).
“5G WILL DOMINATE THE COMMERCIAL With Release 15 stabilizing, 3GPP turned
MARKET FOR MANY YEARS. NOW IS THE its focus to developing Release 16, which
addresses 5G operational enhancements
TIME FOR EARLY PREPARATION FOR 6G and lays the groundwork for vertical
TECHNOLOGY.” industry requirements.
5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 9
This includes creating enablers for 5G use
in industrial automation and vehicle-to-
everything (V2X) applications. The target
scope for Release 17 was approved in
December 2019. It includes work to support
public safety users in 5G and integrate
satellite and other types of non-terrestrial
(NTN) networks. ATIS has also taken a lead
industry role in the NTN/5G integration.
Releases 15 and 16 Submitted to ITU
IMT-2020
The International Telecommunication
Union (ITU) Radiocommunication Sector
(ITU-R) plays a role in setting performance
objectives and endorsing technical
specifications to define mobile network
generations, as in 2G, 3G, 4G, and 5G.
ITU’s vision for 5G was completed in
September 2015 and is the basis for ITU projects run on long timescales. make important calls/sessions even
IMT-2020. The organization is now in the The organization already has a focus when public networks are congested.
process of formally reviewing and endorsing group on networks in 2030. Though 5G
candidate specifications to implement will dominate the commercial market In addition, important work in the 5G system
IMT-2020. Candidates must successfully for many years, now is the time for early to meet market requirements includes:
complete a nine-step evaluation process preparation for 6G technology.
to be referred to as an ITU 5G technology. • Enhanced 5G support for vertical
ATIS is one of the 13 registered Independent North American Priorities markets such as agriculture and
Evaluation Groups worldwide and the only North America has unique regional needs industrial automation.
North American organization engaged in this and priorities based on market dynamics • Network automation enhancements
process, which is expected to be complete and regulatory requirements. Of specific to support the application of 5G data
by November 2020. interest are 3GPP specifications that enable analytics for improved network operations.
the region’s operators to comply with • Enhancements to network slicing.
3GPP made two submissions based on existing and future anticipated regulatory • Radio performance enhancements,
work in Releases 15 and 16: requirements. Priorities in this category are: such as for multiple input, multiple
output (MIMO), control channel, and
1. NR RIT (New Radio – Radio Interface • Enhanced 5G support for select vertical LTE/NR co-existence and coverage.
Technology), which is a pure 5G domains that intersect with emerging • Efficient usage of operator-licensed
network. regulatory interest, including V2X bandwidth when available spectrum
enhancements, that are applicable does not align with existing standard
2. NR+LTE SRIT (set of RITs), which to public safety applications and 5G channel bandwidth options.
includes the NR specifications, along unmanned aerial system identification.
with an LTE component covering specific • 5G multicast, broadcast, and proximity As we enter a new decade, the evolution
areas such as IoT/MTC (eMTC and services in support of mission-critical of mobile specifications will continue at
narrowband IoT [NB-IoT] specifications). situations applicable to FirstNet and a fierce pace to accommodate the ever-
other public safety applications. increasing demands of new technology.
It is fully expected that the 3GPP • Multimedia Priority Service, which ATIS is poised to continue delivering
specifications will be recommended by helps ensure that national security/ the standards and solutions it takes to
the ITU-R as a 5G technology. emergency preparedness users can advance our industry’s transformation. n
10 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY5G RAN EVOLUTION
Author: Gabriel Brown, Principal Analyst, Mobile Networks & 5G, Heavy Reading
The RAN is the most expensive part of a 5G network and requires constant investment in
new coverage, equipment, and optimization. 5G coverage is critical to virtually every player
in the ecosystem and every prospective customer.
KEY TAKEAWAYS:
Almost half (49%) of respondents indicated they think between 25% and
50% of their RAN footprint will support 5G by the end of 2021. This is a
bullish outlook, but it is not an outlandish expectation, given the opportunity
to use low band frequencies and the increasing maturity of operator
deployment capabilities.
The survey shows strong, but not unequivocal, support for open RAN,
with 18% saying it is a “critical strategic priority” and 44% “important.”
Perceptions of the challenges around open RAN are fairly evenly divided,
which indicates the solutions will be found at the system level.
About a third (31%) of respondents said 5G RAN field testing is
“significantly more challenging” and over half (54%) said “somewhat more
challenging.” Inter-technology handover between LTE and 5G is considered
the greatest challenge according to 57% of respondents, ahead of validation
of low latency URLLC applications at 39%.
5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 115G RAN Evolution
Expectations for 5G coverage are critical to every player in the ecosystem
and every prospective customer. As expected, coverage in the first year of
commercial launch (2019) was severely limited in all markets except South Korea,
where it was merely limited. With this question, Heavy Reading wanted to get a
feel for coverage expansion in the next 2 years (Fig 10) – i.e., by the end of 2021.
We also posed this question in 2019, when we asked for a 3-year view, so both
surveys land on expectations for 2021.
n the 2020 survey, 49% indicated 5G RAN solutions and operator marshal support for this approach to
I they think between 25% and 50% deployment capabilities. It is worth mobile access networks. The survey
of their RAN footprint will support 5G, keeping in perspective, however, that a shows strong, but not unequivocal,
versus 43% in 2019. This suggests not insignificant 34% think less than 25% support for open RAN, with 18% saying
operators anticipate 5G coverage will of their RAN footprint will support 5G it is a “critical strategic priority.” The 44%
increase significantly in the next 2 years access in that timeframe. of respondents (Fig 11) who said it is
and that they are slightly more confident “important” are significant, but this falls
on coverage than last year. This is a The prospects for open RAN solutions short of whole-hearted endorsement.
bullish position, but it is not an was one of the major discussion points The combined 38% that said open RAN
outlandish expectation in advanced in the RAN market in 2019. Initiatives is only “somewhat important” (33%) or
markets, given the interest in low band such as the Telecom Infra Project (TIP) “not important at all” (5%) shows that
frequencies (and dynamic spectrum OpenRAN Project Group and the O-RAN there remain a decent number of people
sharing) and the increasing maturity of Alliance have helped to generate and still to be convinced.
Fig 10. How much of your RAN Fig 11. How important will “Open RAN” “INITIATIVES SUCH
footprint will be running 5G access, and “white box radio” be to your network
within the next two years? (N=154) within the next two years? (N=154) AS THE TELECOM
INFRA PROJECT (TIP)
OPENRAN PROJECT
GROUP AND THE
O-RAN ALLIANCE
HAVE HELPED
TO GENERATE
AND MARSHAL
SUPPORT FOR THIS
Less than 25%.......................................................34% Critical – it’s a strategic priority ........................18% APPROACH TO
25 - 50%..................................................................49%
51 - 75%..................................................................10%
Important ...............................................................44%
Somewhat important – but it’s not a priority.......33%
MOBILE ACCESS
More than 75%........................................................ 7% Not important at all................................................ 5% NETWORKS.”
12 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEYFig 12.For multi-vendor Open RAN Fig 13.From a 5G RAN perspective,
deployments, which of the following do you do you see field testing as a bigger
see as the biggest challenge? (N=153) challenge than LTE technology? (N=153)
Functional and protocol compliance................35% Yes, 5G RAN field testing is significantly
Systems performance and robustness............39% more challenging than LTE.................................31%
Maintenance and daily operations....................26% Yes, 5G RAN field testing is somewhat
more challenging than LTE.................................54%
Other..........................................................................1%
No, it’s about the same...........................................14%
No, 5G RAN field testing is less
challenging than LTE ............................................. 1%
Fig 14. What aspects of 5G field testing are your greatest concerns? (select up to two) (N=153)
57%
39%
32%
“EXPECTATIONS
21% 22%
FOR 5G COVERAGE
ARE CRITICAL TO
EVERY PLAYER IN
THE ECOSYSTEM
Inter-technology
(LTE and 5G)
FR1 and FR2
handover
Massive MIMO
and beamforming
Fiber infrastructure
scale and testing of
Low latency
validation for
AND EVERY
handover and
performance
performance
management
performance
validation
fiber network URLLC applications
PROSPECTIVE
management (between sub 6GHz
and mmWave band) CUSTOMER.”
5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 13Perceptions of challenges around be that it increases complexity and field mode, with the control plane anchored
open RAN are addressed in (Fig 12). test challenges. The survey results bear on LTE and the user plane split
Most notable is that responses are out this view. About a third (31%) said 5G between the LTE and 5G bearers on the
fairly evenly divided, with “system RAN is “significantly more challenging” downlink (and sometimes uplink). Inter-
performance” (39%) just ahead of and over half (54%) said “somewhat more technology operation is inherent to NSA,
“functional compliance” (35%) and third challenging.” This indicates that 5G RAN and there are many examples of it being
placed “daily operations” (26%) not a testing is considered a stiff challenge, but challenging to implement, monitor, and
million miles behind. This indicates not an insurmountable problem. optimize. In time, as operators become
the challenges are holistic in nature; more familiar with inter-technology
therefore, the solutions will likely be Looking more deeply into 5G RAN field operations, and as operators move to
found at the system level. testing shows that “inter-technology SA mode, this challenge may moderate
handover between LTE and 5G” is and other challenges will come to the
Turning to RAN field testing, the survey considered the greatest challenge by fore. Massive multiple input, multiple
asked if 5G RAN testing is a bigger 57% of respondents (Fig 14), ahead output (MIMO)/beamforming and
challenge than LTE (Fig 13). A reasonable of “validation of low latency URLLC URLLC testing are likely to rise up the
assumption, given 5G introduces another applications” at 39%. This is consistent list of concerns as these technologies
RAN layer, with significant flexibility in with early experiences of network are introduced more widely and scaled
how it is configured and deployed, would operation where 5G is deployed in NSA for the mass market. n
As standards continue to evolve and 5G is deployed in more and architecture. Protocol layers are split across the various
more cities across the world, it is clear that the new 5G radio network elements to satisfy cost and flexibility. With
access network (RAN) – whether it is deployed non-standalone mobile edge computing (MEC), you may now find that the
(NSA) or standalone (SA) – is the fundamental piece of the 5G application service is much closer to the edge (for low latency
puzzle. If we look back at traditional 3G/4G networks, there is applications, for example). The user plane function that
clear delineation between RAN and core. The eNodeB in the you typically would have access to at the core will now be
RAN in 4G, for example, connects with a service gateway in a accessed in the RAN. In addition, previous RAN technologies
centralized core. With 5G, however, there is a need for a more have always been cell-centric – that model starts to disappear
flexible, liquid, and virtual open RAN architecture – and one that with 5G as we move to a 3D beam-centric model with both
is more adaptive and intelligent. coverage and users beams. Dynamic spectrum sharing (DSS)
is also being used by service providers to find a balance
New interfaces are created that offer access points to between coverage and throughput. So, with 5G, the RAN truly
data intelligence as we move to a disaggregated 5G RAN has become the new core.
14 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY5G CORE NETWORK
Author: Gabriel Brown, Principal Analyst, Mobile Networks & 5G, Heavy Reading
The core network controls user sessions, authentication, policy, and mobility. It also
connects to external networks such as the internet, to cloud providers, and into enterprises.
It is therefore critical to the 5G system architecture and the 5G service offer. The major
story in 5G core is the introduction of SA mode alongside NSA. NSA uses a 4G core with a
combination 4G/5G access and is in all commercial networks launched to date. SA uses a
5G core and is not yet commercial. Deployment and scaling of SA is a multi-year process
that affects devices, RAN, transport, and telco cloud strategies.
KEY TAKEAWAYS:
Almost one-third of respondents (30%) said they “strongly agree” with the view
that a 5G core is necessary to capture the full benefits of 5G, up from 14% in
Heavy Reading’s 2019 survey. By far the largest respondent group, however, is the
59% that “agree” with the statement, but not “strongly.”
A lead cohort (16%) expect to start 5G SA operations before the end of 2020. By
the end of 2021, over half of respondents expect their employer to have deployed
5G core and introduced SA mode.
Most operators will use “two or three vendors” in their 5G core. With a score of
47%, this is the favored option by some distance relative to “multiple best-of-
breed vendors” (26%) and “likely to use a single vendor” (11%).
A combined 82% said they will deploy 5G core in virtual machines (VMs), either
as virtual network functions (VNFs; 40%) or as containerized applications in VMs
(42%). This is probably because operators now have stable telco cloud platforms
based on virtualized infrastructure. A minority (18%) indicated their company will
go direct to a cloud-native model with containerized applications on bare metal.
5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 155G Core Network
To test the importance of SA mode and 5G core, Heavy Reading asked respondents
to what extent they agreed or disagreed with the following statement:
“It will be difficult to offer the full range of 5G services in NSA mode using a
4G core; we need a 5G core to capture the full benefits of 5G.”
lmost a third (30%) said they Fig 15. To what extent do you agree or disagree with the following statement: It will be
A “strongly agree” with this view
difficult to offer the full range of 5G services in NSA mode using a 4G core; we need a
5G core to capture the full benefits of 5G. (N=151)
(Fig 15). This is a high number but lower
than Heavy Reading’s expectations. It is,
59%
however, up from the 14% that agreed
with the statement in the 2019 survey.
Note also that the RoW region is more
likely to “strongly agree” (40%) than U.S.
respondents (24%). By far the largest
response is the 59% that “agree” with the 30%
statement, but not “strongly.” There are a
number of plausible reasons for this
“agree but not strongly” view. In
particular, some operators will likely
converge the 4G and 5G core to the
6%
extent that new functionality is 4%
1%
introduced but an entirely new core is
not necessarily deployed.
Strongly agree Agree Disagree Strongly disagree Not sure
The timeframe in which operators deploy
5G core and can support SA operation is
important to understand the rate at which Fig 16. When do you expect to deploy 5G core and standalone 5G? (N=152)
certain types of advanced services can
40%
be introduced. The survey (Fig 16) shows
a lead cohort (16%) expect to start SA
operations before the end of 2020. This
aligns with public comments from large 29%
U.S. operators and one or two elsewhere,
notably China, South Korea, and the
Middle East. In Heavy Reading’s view,
16%
it is likely that these 2020 deployments 15%
will be small-scale pilots, deployed as
preparation for mass-market services
over 5G core from 2021 onwards.
The largest respondent group (40%)
expects 5G core to be a 2021 event. Within 12 months Within 24 months Within 36 months In 2023 or later
The take-away is that within 2 years, (by the end of 2020) (by the end of 2021) (by the end of 2022)
16 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEYover half of respondents expect their taken by larger operators in advanced Fig 17. Thinking about your 5G core
network, do you plan to assemble the
employer to have deployed 5G core. markets that have the wherewithal and functions that make up the service-
However, the respondent demographics incentive to manage multi-vendor cores. based architecture (SBA) 5G core
are concentrated on larger operators There is also an interesting disparity from multiple vendors or from a single
in advanced economies; 2021 should between U.S. and RoW: just 3% of U.S. vendor? (N=150)
not be read as a worldwide industry respondents selected single vendor
timeline. Even in Europe, 2021 may be a versus 23% for RoW.
little too aggressive.
There is an expectation that the 5G
Most operators will use “two or three core will be cloud native. Although
vendors” in their 5G core, according “cloud native” is not formally defined,
to the survey (Fig 17). With a score of it typically means containerized
47%, this is the favored option by some applications (workloads) composed of
distance against “multiple best-of- microservices. These are sometimes
breed vendors” (26%) and “likely to use called cloud-native network functions
a single vendor” (11%). Depending on (CNFs), as opposed to VNFs. The
definitions, the mobile core comprises challenge is that the mobile core has Likely to use single-vendor..................................11%
half a dozen to a dozen different extremely high uptime requirements Likely to use two or three vendors
network functions. Selecting two or and must be very stable before an to assemble a 5G core ........................................47%
Likely to use multiple vendors
three vendors, each providing a few operator will risk large-scale commercial to create a best-of-breed 5G core .....................26%
closely coupled functions, is common deployment. Failures in the core are Don’t know / too early to say..............................15%
in 4G. It makes sense the same model the major cause of mobile network
would prevail in 5G core. outages. Some believe that cloud-native Fig 18. On what technology platform do
platforms and applications are not yet you expect to deploy your initial 5G core?
Only 11% selecting “single vendor” is low mature or stable enough for commercial (N=150)
relative to what is common today, on a 5G core, even where vendors are ready
global basis, in 4G core. This could reflect to offer them. This question (Fig 18)
the fact that the survey was primarily tested that supposition.
As VNFs in VMs....................................................40%
As containerized applications in VMs..............42%
Containerized applications direct to
bare-metal with cloud native orchestrator
(e.g. Kubernetes)............................................................18%
“MOST OPERATORS WILL USE
‘TWO OR THREE VENDORS’
IN THEIR 5G CORE”
5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 17When asked on what technology asked (Fig 19) how attractive network Fig 19. How attractive is Network Slicing
platform they expect to deploy their slicing is as a commercial proposition, as a commercial proposition for your
initial 5G core, a minority (18%) of with the added qualifier of the business company? (N=151)
respondents indicated their company case. This qualifier is important
would go direct to a cloud-native model because a lot of people like the idea
with CNFs deployed on bare metal.By of network slicing but may not be
far the larger group was the combined convinced that it can be implemented,
82% that said they would deploy 5G marketed, and sold effectively.
core in VMs, either as VNFs (40%) or
as containerized applications in VMs 19% said their company views
(42%). This preference is probably networks slicing as “very attractive
because operators now have stable, with a strong business case,” while
scalable telco cloud platforms based 48% said it is “attractive and we think
on virtualized infrastructure that will there’s a good business case, but are
allow them to deploy 5G core faster, not certain.” Heavy Reading interprets
Very attractive – there’s a strong business case....19%
and at lower risk, than going direct to this to mean the majority want network
Attractive – we think there’s a good
containers and bare metal. slicing to work and be commercially business case, but are not certain....................48%
successful and are reasonably Quite attractive – but we’re not sure
of the business case ..............................................25%
One of the defining features of 5G, and optimistic it will be but have some
Not attractive – there is
one that that depends on having a 5G doubts. It is also revealing that only 8% limited commercial opportunity ......................... 6%
core, is network slicing. Heavy Reading said it is “not attractive.” n Not attractive at all................................................. 2%
The 4G Evolved Packet Core (EPC) is significantly different Test tools are required that support the development of
from the 5G core, with the 5G core leveraging virtualization and virtualized functions in mobile edge architecture; offer an
cloud-native software design at unprecedented levels. The new end-to-end testing solution from RAN through the edge to
5G core, as defined by 3GPP, utilizes cloud-aligned, service- the mobile core; and stress test the impact of RAN traffic
based architecture (SBA) that spans across all 5G functions on the core network. Service providers need to prepare
and interactions, including authentication, security, session their networks for the demands of a massive number of
management, and aggregation of traffic from end devices. The connections through the Internet of Things (IoT) while
5G core further emphasizes network function virtualization as also coping with bandwidth-hungry, delay-sensitive edge
an integral design concept with virtualized software functions applications such as augmented reality.
capable of being deployed using the multi-access edge computing
infrastructure that is central to 5G architectural principles.
18 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY5G EDGE CLOUD
Author: Gabriel Brown, Principal Analyst, Mobile Networks & 5G, Heavy Reading
To deliver consistent performance in 5G networks, and low latency ultra-reliable services in
particular, it is widely expected that operators will need edge cloud infrastructure. Hosting
applications and content closer to the “user” should improve the service experience and
enable high performance applications that are impractical, inconsistent, or not possible
using only large, centralized cloud infrastructure.
KEY TAKEAWAYS:
There is no single motivation to deploy edge cloud infrastructure that stands out, but
rather, several reasons – each with solid support. To illustrate, “ensuring application
performance” scores highest in terms of the primary motivation with 32%, ahead of
“differentiated communications services,” which scores lowest at 19%.
Operators are making progress on their edge cloud deployments. “Developing”
scores highest, followed by “early stages” in respondents’ self-assessment of
their progress. Less than 20% said they have “not started,” and in all but one case,
fewer than 20% claim their deployment as “mature.” This indicates the rollout of
edge cloud infrastructure is well underway in advanced operators but far from
finished.
At the edge, operators expect to support both containers and VMs now and in the
medium term. Consistent with the prior finding on 5G core, the conclusion is that
edge cloud infrastructure must support multi-mode workloads.
A majority (71%) expect to support less than 100 edge cloud locations in 2020.
Looking ahead to end-2023 – i.e., 4 years from now – the picture changes. At
this stage, a majority of operators expect to support more than 100 edge cloud
locations, but less than 1,000. U.S. respondents selected higher numbers of
locations than their peers in RoW, both now and in 2023.
5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 195G Edge Cloud
In an attempt to identify respondents’ primary motivation for edge cloud
deployment in 5G networks, the first question in this section (Fig 20) allowed only
one answer. The result shows there are several reasons, each with solid support
and no clear winner. “Ensuring application performance” scores highest at 32%,
followed by “vertical industry services” at 28%. These two options in combination
account for 60%. The percentage of respondents that are more focused on
operators’ internal priorities (21% “reduced transport cost” and 19% “differentiated
communications services”) is lower at 40%, but not by a huge amount.
Fig 20. What is your PRIMARY iven the evenness of response, all workloads, with security at the edge
motivation to move workloads to the G the conclusion is that the considered more severe. A third (35%)
edge? (N=143)
investment case for 5G edge cloud will believe edge security presents “extreme
require operators to pursue multiple risk.” Quality control and cost control
motivations simultaneously. are considered somewhat less risky
aspects of edge cloud deployment,
The next question (Fig 21) asked about perhaps because respondents feel these
the stage of development of operators’ are issues operators are already familiar
edge cloud deployments. In all cases, with when designing and deploying new
“developing” scores highest, followed by infrastructure.
“early stages”; less than 20% have “not
started.” In all but one case (network One might argue that the inclusion
virtualization), less than 20% claim their of the word “risk” in the question
deployment as “mature.” The clustering led respondents to express greater
Reduce bandwidth use/cost .............................21%
Offer differentiated communications
of response around the middle options concern about security than they might
services (vs competitors)....................................19% indicates the rollout of edge cloud is well have otherwise. However, security is
Offer vertical industry services (e.g. in-vehicle underway in advanced operators, but far highlighted elsewhere in the survey as a
scanning for ambulances, advanced real-time
analytics for investment banking).........................28% from finished. primary concern. For example, “security”
Ensure application performance.......................32% was identified as the biggest risk of
U.S. respondents were slightly more working with external cloud providers to
likely to select “mature” than their RoW provide enterprise 5G services.
counterparts. However, only in the
categories of “containerized network The transition to virtualized and cloud-
functions” and “containerized workloads” native telecom networks must consider
was this significant – to the tune of a the infrastructure on which workloads
10% higher score. This may indicate U.S. will run. This question (Fig 23) asked
operators are a little more advanced than specifically about the edge and the mix
peers elsewhere. between containers and VMs in 2020
and 2023. The straightforward analysis
Asked about the risks of running of the response is that operators expect
different types of workloads at the edge to support both VMs and containers
(Fig 22), most respondents view edge now and in the medium term, which
cloud as “moderately risky” for nearly leads to the conclusion that edge cloud
20 5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEYFig 21. Where is your organization in its rollout of edge cloud capabilities? (N=140-144) Mature Developing Early stages Not started
49%
46% 47%
40% 41%
38% 38% 38% 38%
34% 35%
32% 32%
29% 29% 29%
26%
18% 19%
15% 15% 14% 15% 15%
13% 13%
11%
9% 8%
6% 7%
5%
Network Containerized Containerized CI/CD and DevOps AI capabilities IoT capabilities Automated Edge services for
virtualization network functions application operations with AI vertical industries
workloads
Fig 22. How much risk is involved in running more of the following workload at the edge? Fig 23. What percentage of your
(N=143-144) edge workloads will you run in virtual
machines or containers? (N=137-144)
Extreme Moderate risk Minimal risk Not at all
61% 62% 2020 2023
54%
52% 50% 49%
49%
41%
35% 34% 32%
29%
27%
24%
17%
15%
12% 13%
11%
1% 2% 1% 2%
0%
Security Centralized Staff skill level Cost control Quality control Virtual machines Containers
management
infrastructure platforms will be multi- past few years has been: How many
mode. This finding is consistent with locations will operators deploy? Heavy
the response to the 5G core variation Reading asked respondents (Fig
of this question in the section above, 24) for their views in 2020, and then
where it was established that a majority in 2023. The first finding is clear: a
of operators (82%) would deploy 5G majority (71%) expect to support less
core using both VNFs and CNFs. than 100 edge cloud locations this
year, which indicates larger facilities
One of the most common discussion serving larger numbers of users will
points in telco edge cloud in the prevail in the near term.
5G NETWORK & SERVICE STRATEGIES 2020 OPERATOR SURVEY 21Fig 24. How many network edge cloud locations do you support now, and will support in Looking ahead to 2023 – 4 years from
2023? (N=141-143)
now – the picture changes. At this stage,
a majority of operators expect to support
2020 2023
more than 100 edge cloud locations,
71% with 48% saying between 100 and 999
locations, and 34% more than 1,000.
However, this also means a majority
expect to have less than 1,000 locations
in 2023, given 18% will still have less
48%
than 100 locations. Thus, operators likely
expect to take an assertive, but also
phased and measured, approach to edge
cloud deployment in the medium term.
28%
21% The basic pattern is the same for U.S. and
18%
RoW respondents. Note, however, that U.S.
respondents selected higher numbers of
8%
6% locations than RoW in both time periods.
1%
For example, 35% of U.S. and 18% of RoW
respondents expect to have between
Less than 100 100 - 999 1,000 - 9,999 10,000 or more 1,000 and 9,999 locations in 2023. n
Edge computing promises to change the way people function Service providers are increasing edge deployments for multiple
and interact with various services. Healthcare services previously reasons, making it necessary to prepare to support different
only available in hospitals will be delivered in ambulances or in workload types running in virtual machines (VMs) and/or
patients’ homes. Sensors will detect faulty machinery in remote containers. Red Hat offers a consistent, secure open hybrid
sites and prevent problems before they happen. cloud foundation for digital service providers to build and deploy
edge services – a common infrastructure across the compute,
Smart cars, smart cities, artificial intelligence/machine learning storage, and network footprint, with automated provisioning,
(AI/ML), and the Internet of Things (IoT) are all within reach as it management, and orchestration to simplify operations. Get ready
becomes possible to move workloads away from the network’s with Red Hat and our ecosystem of certified partners to respond
core out to its edge, where data can be processed and acted to the opportunities that edge computing makes possible – even
upon – practically in real time. those not yet imagined.
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