Early 5G Standalone Rollouts Deliver Big Benefits - But Maybe Not for the Reasons You Think
If you're up-to-date with the latest news about telecom technology and someone asked you to list one advantage that service providers can expect from 5G Standalone (SA) Core, you would probably say new opportunities to offer services. For many years, vendors and experts have highlighted the revolutionary experiences that the advanced version of telecom could deliver. With the help of network slicing, ultra-low latencies, open architectures, and other features, 5G Core makes it possible to offer customized services, particularly for enterprise clients. Service providers have the chance to offer amazing new service experiences in sectors like industrial automation, augmented reality, telehealth, and others, and create more profitable revenue streams that redefine their place in the digital world.
The advantages of using 5G Core are pretty remarkable. Nonetheless, there is one benefit that doesn't seem to receive much attention - cost reduction. People may believe that the industry's attention is entirely on new possibilities and income, and there is little to be said about the other side of the balance sheet. However, those in charge of deploying 5G Core have a different tale to tell. A recent survey involving more than 70 service providers who are introducing 5G Core indicates that cost savings are one of the primary benefits of their rollouts. Often, this is a significant factor in the decision to implement them.
What sort of improvements are service providers experiencing through the initial set up of 5G Core? How might this impact operators who have been reluctant to transition? Let's examine this further.
5G Core Savings Revealed
By June 2023, over 40 companies had already introduced 5G Core services for commercial use. There are another 115 companies who are planning to upgrade in the next 24 months, which is great news. Finally, we can discuss the practical applications of 5G SA, rather than just having theoretical conversations about it. This means we can now start analyzing the experiences of companies who have actually deployed it.
When we talked to the operators, they were enthusiastic about the fresh possibilities that 5G Core will make available, as well as the flexibility it gives for creating unique services and adapting to changes in the market. Although these advantages are mostly something to look forward to, people who have already started using it are noting impressive benefits in terms of reducing costs and streamlining operations. The people who are in charge of deploying it are highlighting:
If you belong to a company that offers services and hasn't introduced 5G Core yet, what can you learn from those who jumped on the bandwagon early? Our research indicates that it's a good idea to move ahead with 5G Core, even if you still have uncertainties about the most profitable new use cases or where to begin. You can enjoy the cost savings and effectiveness of 5G Core while waiting for a clearer view of the earnings aspect.
Another important takeaway from the first 5G Core implementations is the commonality among the early adopters. They all acknowledge the significance of testing in managing such a colossal change, and they've each made considerable strides to guarantee they possess the appropriate approach.
The service providers that are experiencing the greatest achievements in the initial 5G Core rollouts are concentrating on three main aspects:
Early pioneers have successfully reduced the confusion and difficulty of transitioning to 5G SA and cloud-native structures by prioritizing certain aspects. This has resulted in quicker benefits and developments. Numerous individuals report being able to quickly approve new vendor releases, with a 3-fold increase in speed, and automate thousands of validation tests. This also allows for an overall decrease in the time needed to bring a product to market by a large margin, reaching over 60 percent.
Making efficiency improvements in telecommunications companies would inspire them to start adopting 5G Core network technology. This adoption will enhance their revenue growth and will create ample opportunities for new use cases for various mobile services. It's not just about expanding their service portfolios, but reducing operational costs as well. Getting ahead in this process will give companies a first-mover advantage when identifying the most profitable 5G use cases. Streamlining their operations now will also help distinguish their services and increase their chances of gaining more 5G revenues in the long run.