What’s the big deal with 5G Standalone Networks?
Let’s start with the difference between 5G Standalone (SA), 5G Non-Standalone (NSA) and 4G.
4G or LTE (Long-Term Evolution):
4G, short for Fourth Generation, is the previous generation of mobile network technology. It is characterized by higher data speeds and more reliable connections compared to its predecessor, 3G. 4G operates on a core network called the Evolved Packet Core (EPC). It provides enhanced mobile broadband and supports various data-intensive applications like video streaming and online gaming. While it offers improved performance over 3G, it does not possess the low latency and extensive capabilities of 5G.
NSA 5G is an intermediate step between 4G and full-fledged 5G, primarily built on existing 4G infrastructure. It uses a combination of 5G radio access (RAN) and the 4G Evolved Packet Core (EPC) to deliver some 5G features. NSA provides faster data speeds and increased network capacity compared to 4G, but it doesn't fully exploit the low latency potential of 5G. While it's a cost-effective way for mobile network operators (MNOs) to introduce 5G, it doesn't offer the complete range of capabilities that standalone 5G does. NSA is suitable for industries looking for incremental improvements and a smoother transition from 4G to 5G.
SA 5G is a fully independent network architecture, with its own 5G core, radio access, and cloud-native infrastructure. It offers the complete set of 5G capabilities, including ultra-low latency, enhanced data rates, massive device connectivity, and reliable, real-time communications. SA 5G is built to support various emerging technologies, such as the Internet of Things (IoT), autonomous vehicles, and smart cities, due to its ability to handle diverse use cases. SA reduces power consumption by utilizing a single 5G core, making it more energy-efficient than NSA. The transition to SA requires a significant investment in infrastructure, as MNOs need to build a new 5G core network. However, it unlocks the full potential of 5G technology and paves the way for future innovations.
5G NSA offers a partial upgrade using existing 4G infrastructure, and 5G SA represents a complete transformation with its own dedicated 5G core and advanced capabilities. While NSA provides an incremental improvement over 4G, SA is the true embodiment of the next-generation network, enabling a wide range of applications and services with its powerful features and low latency.
So who benefits from 5G SA?
5G Standalone (SA) offers a host of significant benefits to both industries and consumers, revolutionizing the way we connect, communicate, and interact. Here are some of the principal benefits of 5G SA:
- Ultra-Reliable Low Latency Communications (URLLC): SA 5G provides ultra-low latency, with delays as low as 1 millisecond. This is crucial for applications requiring real-time interactions, such as remote surgery, industrial automation, and autonomous vehicles. It ensures that critical operations can be performed remotely and without any noticeable delay.
- Massive Machine-Type Communications (mMTC): SA 5G supports the connectivity of a massive number of devices simultaneously. This is essential for the Internet of Things (IoT) and industrial applications, allowing industries to deploy large-scale sensor networks, monitor equipment remotely, and optimize operations based on real-time data.
- Enhanced Mobile Broadband (eMBB): SA 5G delivers significantly faster data speeds and higher capacity compared to previous generations. This is ideal for industries that require high-bandwidth applications, such as high-definition video streaming, virtual reality, and augmented reality experiences.
- Network Slicing: SA 5G allows operators to create virtual network slices tailored to specific industries or use cases. This enables different industries to have customized network configurations that best suit their requirements, ensuring optimal performance and efficiency for each application.
- Edge Computing: With SA 5G, processing and data storage can be moved closer to the network edge. This reduces latency for applications that require real-time data processing, enabling faster decision-making and more efficient data handling.
- Remote Control and Monitoring: SA 5G enables real-time remote control and monitoring of machinery, equipment, and critical infrastructure. This is invaluable for industries like manufacturing, energy, and utilities, as it enhances operational efficiency, minimizes downtime, and reduces maintenance costs.
- Enhanced Mobile Experiences: Consumers will enjoy lightning-fast download and upload speeds, seamless video streaming, and smoother online gaming experiences with SA 5G. This translates to reduced buffering, higher-quality video content, and better overall performance for data-intensive applications.
- Augmented and Virtual Reality: SA 5G's low latency and high bandwidth are especially beneficial for augmented reality (AR) and virtual reality (VR) applications. Consumers can enjoy immersive experiences, from interactive gaming to remote virtual collaboration, with minimal latency and high-quality visuals.
- Connected Smart Devices: SA 5G's mMTC capabilities enable consumers to seamlessly connect and control a wide range of smart devices in their homes and daily lives. This includes smart appliances, wearables, home automation systems, and health monitoring devices.
- Future-Proof Connectivity: As new technologies emerge, SA 5G provides a robust and flexible foundation for supporting upcoming innovations. Consumers can expect their devices to stay connected and perform optimally as the technology landscape evolves.
- Reliable Connectivity in Crowded Areas: SA 5G's increased network capacity and improved coverage ensure reliable connectivity even in densely populated areas, stadiums, events, and urban centres where network congestion can be an issue.
- Real-Time Communication: Consumers can enjoy high-quality, lag-free video calls and conferencing on the go, enabling effective remote communication for work, family, and social interactions.
In essence, 5G SA's advanced capabilities offer a transformative impact on industries and consumers alike. From enabling groundbreaking industrial applications to enhancing everyday consumer experiences, SA 5G is poised to shape a future of seamless connectivity, real-time interactions, and unprecedented innovation.
5G Technology represents a massive investment – how will the Operators monertise this investment?
Mobile Network Operators (MNOs) have various strategies to monetize 5G Standalone (SA) and capitalize on the advanced capabilities it offers. Here are some ways MNOs can generate revenue from 5G SA:
- Tiered Data Plans: MNOs can introduce tiered data plans that offer different levels of data usage at varying price points. With the higher speeds and capacity of 5G SA, MNOs can attract customers to subscribe to premium plans for faster and more reliable connectivity.
- Premium Content Services: MNOs can partner with content providers to offer premium streaming, gaming, and virtual reality content optimized for 5G SA. By providing an enhanced user experience, MNOs can attract subscribers willing to pay for exclusive and high-quality content.
- Enterprise Solutions: MNOs can target businesses with tailored 5G SA solutions, such as IoT connectivity, real-time data analytics, and remote monitoring services. Industries like manufacturing, healthcare, logistics, and agriculture can benefit from advanced connectivity for improved efficiency and productivity.
- Smart City Initiatives: MNOs can collaborate with municipalities to deploy 5G SA infrastructure for smart city applications, such as smart traffic management, public safety, environmental monitoring, and energy optimization. These partnerships can generate revenue through service contracts and data analytics.
- Edge Computing Services: MNOs can offer edge computing services to businesses that require low-latency processing and real-time data analytics. By hosting applications and services closer to the network edge, MNOs can charge for these value-added services.
- IoT Connectivity: MNOs can offer specialized IoT connectivity plans for industries deploying massive sensor networks and IoT devices. This can include solutions for asset tracking, supply chain management, and industrial automation.
- 5G Enterprise Private Networks: MNOs can provide enterprises with dedicated private 5G networks for their specific use cases, ensuring secure and reliable connectivity tailored to their needs.
- Augmented and Virtual Reality Services: MNOs can offer premium augmented and virtual reality experiences, such as virtual events, training programs, and immersive entertainment.
- 5G Roaming Services: MNOs can generate revenue by offering 5G roaming services to international travellers, allowing them to access high-speed connectivity while abroad.
- Partnerships and Collaborations: MNOs can collaborate with technology companies, startups, and industry leaders to develop innovative 5G SA solutions and services. Revenue-sharing models and joint ventures can lead to mutual financial benefits.
- Smart Home and Connected Devices: MNOs can partner with device manufacturers to offer bundled packages of 5G SA-enabled smart home devices, wearables, and other connected gadgets.
- Advertising and Location-Based Services: MNOs can leverage the enhanced capabilities of 5G SA for targeted advertising and location-based services, offering businesses the ability to reach consumers with relevant promotions and content.
Ultimately, the monetization of 5G SA requires MNOs to create compelling value propositions that leverage the technology's capabilities to meet the unique needs of consumers, enterprises, and industries.
The existing 4G Consumers alone will not provide the return on investment to support the 5G SA investment, and this will mean MNO’s need to refocus from consumers to industry and enterprises and build technology partnerships and build innovative solutions that can unlock the revenue potential of 5G SA, in doing this there is the potential for digital transformation of whole industries, increases in productivity, job creation and the emergence of new business models and services. 5G SA represents a commercial evolutionary challenge for the MNO’s more than a technological one, with a more deep seated need for collaboration and ecosystem building than has been seen before in the telecoms industry.
But with the MNO’s forced into consolidation, layoff’s and cost cutting in recent times where will the necessary expertise and consultative approach come from?
