Intelligence Brief: In focus, green transformation and network sunsets

In recent years, the environmental, social, and governance (ESG) agenda has made its way to the top of the list of priorities for most organisations.

Unsurprisingly, the question of how organisations can support efforts to tackle climate change sits at the centre of many of these ESG discussions and has driven the mobile industry to be one of the first to align itself with the goals of the 2015 Paris Climate Agreement.

Green transformation
Did you know?
In February 2019, the GSMA board, on behalf of the entire industry, set an ambition for the mobile industry to reach net zero carbon emissions by 2050 [1] at the latest. This ambition has been supported by the launch of science-based pathway and milestone targets, with step-by-step guidance for operators to align their carbon reduction targets to the pathway.

This spurred a clear commitment from the industry: as of April, operators representing 65 per cent of the mobile market (by revenues) had committed to science-based targets for carbon reductions and net zero emissions. This is also echoed in our operator survey results [2], where more than 50 per cent of operators surveyed identified sustainability/energy efficiency as extremely important and one of the top network transformation priorities.

Some operators have even set ambitious timelines to achieve net zero emissions as early as 2025 or 2030.

Against this backdrop, operators are identifying and adopting numerous energy efficiency measures such as use of renewable energy sources, infrastructure-level improvements like new lithium-ion batteries, AI-enabled sleep and wake patterns of BTS to save energy, power efficient equipment, and modernising networks through retiring old and legacy networks.

These measures are paving the way for operators to achieve their energy efficiency targets in the net zero journey and they are a reason why green telecom remains in the news on a daily basis.

So what?
An increasing number of operators are committing to reduced carbon emissions, making progress on their goals and experimenting in the name of further efficiencies. This not only helps to combat climate change, but also has positive opex implications for operators.

For a telecom operator, maximum energy consumption happens at the network level, mainly the RAN (ranging from 70 per cent to 90 per cent of total energy consumption), which translates into a bigger slice of network costs allocated towards energy expenses (can be as high as 90 per cent). The energy efficiency measures implemented by operators can therefore drive significant cost savings.

But what else does the industry need to do to achieve these targets?

Operators work with multitude of partners (infrastructure vendors, third-party data centres and outsourced business operations) to deliver their products and services. It is therefore imperative for all the partners involved to work together, and not in silos, to align and achieve the industry-wide targets of net zero emissions. An overarching framework should bring all of the partners together and align their goals and targets.

At the same time, a list of universally agreed KPIs, along with their definition and reporting criteria is important to measure progress and allow an apple to apple comparison for players.

The absence of properly-defined KPIs reporting criteria married with erroneous data availability of energy consumed at every point in the network makes things difficult and complex.

Done right, this will be a win-win for both the global economy and telecom industry.

Related Reading:
Going Green: benchmarking the energy efficiency of mobile [3]
Energy efficiency in the 5G era: going lean, going green [4]

The year of network sunsets
Did you know?
Network sunsets are also one of the measures used by operators in their energy efficiency initiatives, but also with wide-ranging impacts on device sourcing, roaming agreements, VoLTE rollout and more.

The advent of LTE networks also marked the dawn of network sunsets. Starting around 2009/2010 with operators shutting down CDMA networks, the rationale was expansion of 3G networks or support for newer 4G networks. But, it was only around 2015/2016 when operators truly started warming to the concept of network sunsets to support their LTE launch or expansion plans.

Now, as 5G goes global, 2021 is the year when we will see the concept gaining full momentum. Compared with 43 networks shutdowns in the last six years, closure of 35 networks will be completed or planned in 2021 alone. In the five year period from 2021-2025, a total of 69 networks from 61 operators are expected to be shut (see chart, below, click to enlarge).

[5]

So what spurred the growth in network sunsets and what is the one key thing operators need to do right to make a network sunset a success?

The decommissioning of legacy networks offers a number of benefits to operators:

The spectrum can be refarmed (regulations permitting) for the launch and expansion of new technologies.
It contributes to the energy efficiency goals of operators: the standards and infrastructure requirements for newer technologies allow for less energy consumption per bit of data, like with the NR standard of 5G.
Legacy networks usually operate in low- and mid-frequency bands while more than 50 per cent of 5G launches have been in the 3.5GHz to 3.7GHz bands, making legacy bands ideal to enhance the coverage and capacity of 4G and 5G networks.
Where ageing 2G/3G networks eat up a significant portion of an operator’s opex, the new infrastructure innovations in 4G and 5G, such as open RAN, RIC and cloud-based networks are touted to drive significant opex, thereby presenting a good reason to sunset legacy networks.

These benefits conflated with the fact operators in numerous countries still do not have access to 5G-specific spectrum, makes the case for retiring legacy networks to support newer launches and expansions.

Sounds like a perfect scenario, right?

But, what often gets concealed behind these benefits is the challenges involved in the process. Phasing out a network generation completely is a complex process and usually takes years to complete. Transitioning of retail customers, for example, is still manageable by offering handset subsidies and continuation of existing tariffs, but transitioning enterprise or IoT customers can be a lengthy and difficult process given the reliance on low cost 2G devices and networks.

To ensure no hiccups for customers it is imperative an operator undertakes a detailed risk assessment and fully plans for all implications, including new device demands, VoLTE support and so on. The entire transition process needs to be planned carefully while ensuring timely communication with affected customers and the provision of advice and customer support to ensure the smooth transition.

Related Reading
Spectrum Navigator, Q2 2021: new insights and trends to watch [6]
Slow pace of 5G assignments is spurring spectrum refarming [7]
Intelligence Brief: What does 2021 hold for network sunsets? [8]

All the above analysis is based on news curated by GSMA Intelligence’s team of analysts and taken from their Industry Updates feed, available here [9].

– Radhika Gupta – head of data acquisition, GSMA Intelligence

The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.

[1] https://www.gsma.com/betterfuture/wp-content/uploads/2021/04/Mobile-Net-Zero-State-of-the-Industry-on-Climate-Action.pdf
[2] https://data.gsmaintelligence.com/research/research/research-2021/network-transformation-2021
[3] https://data.gsmaintelligence.com/research/research/research-2021/going-green-benchmarking-the-energy-efficiency-of-mobile
[4] https://data.gsmaintelligence.com/research/research/research-2020/energy-efficiency-in-the-5g-era-going-lean-going-green
[5] https://www.mobileworldlive.com/wp-content/uploads/2021/09/GSMAi_network_sunsets.jpg
[6] https://data.gsmaintelligence.com/research/research/research-2021/spectrum-navigator-q2-2021-new-insights-and-trends-to-watch
[7] https://data.gsmaintelligence.com/research/research/research-2021/slow-pace-of-5g-assignments-is-spurring-spectrum-refarming
[8] https://www.mobileworldlive.com/blog/intelligence-brief-what-does-2021-hold-for-network-sunsets
[9] https://data.gsmaintelligence.com/signin?returnPath=%2Findustry-updates

Going green: energy efficiency in telecoms

Join our energy efficiency project to get invaluable insights to support your energy efficiency strategy and help drive your energy costs down

Join our 2022 project

Sustained cost pressures and commitments to net zero in support of the 2015 Paris Agreement have made energy efficiency a strategic priority for many telecoms operators around the world, as the telecoms industry currently accounts for 2-3% of global energy consumption.

This is a long-term story. As mobile data traffic continues to grow dramatically with the rise of LTE smartphones and the expansion of 5G, energy consumption is consequently increasing. To date, energy represents between 15 and 40% of operators’ OPEX, and this is forecast to increase in the coming years.

It comes as no surprise that 92% of the operators we surveyed in 2021 see sustainability and energy efficiency as very or extremely important to their network transformation strategy:

To help provide an evidence base for measuring the industry’s progress in reducing network energy emissions, GSMA and GSMA Intelligence partnered with a group of seven operators to develop an Energy Efficiency Benchmarking tool, and a detailed report.

Get involved

We will launch the next edition of our Energy Efficiency Benchmarking project in January 2022, and you have the opportunity to get involved!

Insights from our project and research will uncover:

  • Energy efficiency ratios
  • Fuel sources (renewables, diesel, traditional grid)
  • Distribution of electricity consumption (RAN/core/datacentres)

Why join?

  • Our data and report will support your energy strategy and help drive your energy costs down
  • This will provide you with an industry benchmark
  • You will benefit from the industry visibility linked to the promotion of the report and insights

What do you have to do?

Attend monthly meetings with our GSMA Intelligence analysts. The data collected from these meetings will be fully anonymous and will provide a basis to build a detailed report.

Fill the form below to get in touch!

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Intelligence Brief: IoT is a journey

On 7 September I made my way to Islington Business centre to attend IoT Tech Expo. An actual, physical event. In person. That and to moderate a session: IoT enabled Digital Transformation.

Connected, IoT-enabled devices have become an inherent part of everyday life across consumers, enterprises and wider society. I am not only talking about barking commands at Alexa, regulating temperature via a connected thermostat or chatting to a Postie over a connected doorbell.

For instance, our commute relies on telematics data from trains, buses and taxis. And when these systems go offline, for whatever reason, there are consequences. Recently in my research on 2G/3G shutdowns [1] I called on an example of San Francisco Municipal Transportation Agency, which took weeks to update after the 2G network shutdown. This resulted in around 70 per cent of buses and trains disappearing from the NextMuni system map, which tracks vehicle locations in real time and predicts arrival times.

Not surprisingly, the conference agenda revolved around digital transformation and the impact IoT has across multiple sectors, while the topic of data and data analytics took centre stage.

Below are some of the key takeaways.

Start with a business case
Steve Hewitt, chairman of the MESA UK Special Interest Group warned most people start their IoT projects with technology which is why 70 per cent to 80 per cent of proof-of-concepts fail and go nowhere. The right way is to start with the why (value) rather than the what (technology). Only after the value and the outcomes are measurable can the technology discussion start.

Pirelli Deutschland’s former head of digital innovation Richard Allbert quoted Gene Haas, owner of the namesake Formula 1 team: “We’ve got a lot of data but we still run like dogs**t.”

Apart from being a really good insight to the realities into Formula 1 racing, this highlights a lot of frustration felt around IoT-enabled products and services if the integration isn’t done right or if a feedback loop to the business is missing. In essence, just deploying technology to capture data isn’t enough. One needs to know what to do with that data and the business outcome. After all, enterprises really don’t care about the tech they want to solve a problem, as such 49 per cent of enterprises see IoT as transformational to their company and industry.

It’s all about data
Enterprises of all sizes deploy IoT solutions to: a) connect assets; b) collect data; c) analyse (make use of data); and d) improve their business (processes, products et cetera), then go through this virtuous cycle again and again. The primary goal is to increase productivity, achieve cost savings/process efficiency and, through better insights, to offer tailored products/services.

However, there are some common pitfalls that should be avoided. Mike Bowers, chief architect at FairCom, advised the first step is to gather data via software to get it from all the various protocols then your data scientist can look at it to say what data is good to make decisions. This prevents getting into a data ocean situation where an enterprise drowns in a massive amount of useless data.

An Airbus collaboration with Palantir Technologies is a great example of scaling up:

Phase 1 included 50 users and achievement was to increase production of the A350 aircraft by 33 per cent
In Phase 2, users increased to 500 with integration including 20 adjacent use cases including supply chain
Phase 3 saw Skywise, an open data platform, extending to the entire aircraft industry
In Phase 4, currently Skywise has 130 airlines on board the platform and almost 20,000 users

During a panel session titled Fuel of the Future – a Holistic look at the Smart Energy and Sustainability Space, Nathan Pierce, programme director for Sharing Cities with the Greater London Authority, shared interesting insights.

Using data and running algorithms, they can optimise energy usage, some of which can be achieved through digital twinning (10 per cent to 15 per cent cost reduction). Analysing data allows for additional carbon savings, for example if a lamppost is broken the platform makes it visible, removing the need to drive around looking for it.

People matter
Employee/internal resistance shows the largest increase compared with 2018, when it was at 26 per cent (see chart, below, click to enlarge). This reflects the fact education on the benefits of IoT has to extend beyond C-level executives, requiring buy-in from people on the ground to adhere to changes. There is a need to think about the end users when designing an IoT solution. For example, Neal Humphrey, healthcare lead at Alcatel-Lucent Enterprise UK, mentioned how nurses are overloaded by the massive amount of information due to a huge increase of health monitors.

All the new information causes alarm fatigue and, unless it is cured employees doesn’t have time to sift through it. A lot of stuff and not enough value.

[2]

Don’t reinvent the wheel
Enterprises are not IoT experts, as such they shouldn’t have IoT competence. They are the experts in their own domain though. IoT vendors can be enterprises’ best friends and that’s how KDDI positions itself, Bo Ribbing, head of IoT at its European unit explained.

During the Covid-19 (coronavirus) pandemic, the carrier discovered its Japanese clients with outposts in Europe came to them asking for help with digitising operations. There will always be enterprises which will want to build their solutions in house, but our survey showed they are a minority at 4 per cent. Having the right partners is truly key to success.

The challenges remain to IoT adoption, but IoT is one of the key components and drivers of enterprises’ digital transformation. After all, as per our research 63 per cent of companies deploy IoT as part of transformation. In fact, Covid-19 has accelerated digital transformation of a number of verticals, for example healthcare and manufacturing. A longer term goal of sustainability is driving transformation of other sectors including agriculture or cities

As a side note if you are a Formula 1 fan you must watch the Drive to Survive series to get all of the behind the scenes action in the sport.

– Sylwia Kechiche – principal analyst, IoT and Enterprise, GSMA Intelligence

The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.

[1] https://data.gsmaintelligence.com/research/research/research-2021/saying-goodbye-to-legacy-networks-but-what-s-next-for-iot-
[2] https://www.mobileworldlive.com/wp-content/uploads/2021/09/GSMA_Intelligence_enterprise_IoT_challenges.jpg

Intelligence Brief: Do governments need to push open RAN agenda?

Open RAN is one of the highest profile topics in mobile networking technology, driven by impressive operator and vendor messaging. In some instances, this messaging focuses on potential opex benefits, in others on capex efficiencies. Which of the two is greater (and the magnitude) is up for debate, and might only be revealed as the technology matures and scales.

What isn’t up for debate, however is the notion technology innovation and network spending aside, open RAN is of interest to players beyond operators and vendors. National governments and regulators, in particular have their own reasons for taking an interest in the technology.

The politics of open RAN
Potential open RAN technical and business model innovations tend to dominate discussions of the technology. It is worth acknowledging policy agendas are also involved in driving the technology’s momentum in various ways.

Consider the existence of industry bodies specifically aimed at promoting policies which will advance open and interoperable RAN systems, such as the Open RAN Policy Coalition. Consider government-funded open RAN development projects, including the UK’s Future RAN Competition which pledged up to £30 million to fund projects that could expedite adoption of open RAN technologies. Consider the views of operators themselves. When asked if national political agendas and concerns are driving the momentum of open RAN deployments and technology development as part of a GSMA Intelligence survey, 54 per cent agreed.

The explanation for any connection between open RAN and national policy goals is often over-simplified, reduced to one or two goals. In reality, a number of different agendas might be at play: a belief the core open RAN promises will benefit mobile operators and the rollout of new wireless technologies; a push for enhanced supply chain diversity; and initiatives which support local manufacture of mobile infrastructure and a belief open RAN can support them.

At the same time, some operators have been clear in stating that they see national support as important to their open RAN goals.

An MoU signed by Deutsche Telekom, Orange, Telefonica, and Vodafone Group earlier this year, for example, noted the operators would work together with groups like the O-RAN Alliance and TIP to “ensure open RAN quickly reaches competitive parity with traditional RAN”.

European policy makers, however were also cited as important ecosystem partners. In fact, the MoU announcement ended by noting “the European Commission and the national governments have an important role to play to foster and develop the open RAN ecosystem by funding early deployments, research and development, open test lab facilities and incentivising supply chain diversity by lowering barriers to entry for small suppliers and start-ups who can avail of these labs to validate open and interoperable solutions”.

Political risk
From an investor perspective, the concept of political risk captures an understanding that political decisions could impact profits or expected returns. From an open RAN perspective, support from policymakers could be helpful in funding, or otherwise supporting, ecosystem development. At the same time, it is not without its own risks:

Changing priorities. Policymakers have been known to change their positions and world views over time. Open RAN, in turn is still a nascent technology with technical and business issues to sort out. If political support for open RAN were to diminish (or evolve as the market takes shape), operators could find themselves having gone down a path that is suddenly more difficult to manage. This would particularly be the case where operators were counting on non-commercial support as part of their open RAN strategies.
Option limitations. In extreme cases, open RAN backing could take the form of mandating its deployment, which would obviously limit an operator’s network options, potentially forcing them to launch a technology not suited to their needs. Again, the fact open RAN is still maturing will play into any evaluation of those needs.
Priority clash. As noted earlier, officials might drive the promotion of open RAN for any number of reasons. Their interests, however won’t always align with operator interests. Prescriptive policies in support of open RAN, then could potentially constrain network choices and/or add to costs even if they stop short of mandating the technology.

Against this backdrop, we need to be particularly sensitive to any moves towards mandated open RAN deployment, in particular. Given existing momentum, technology-neutrality should not hurt the progress of open RAN, but will preserve operator choice in line with their priorities and understanding of the market.

– Peter Jarich – head, GSMA Intelligence

The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.

Radar report: Green networks: the energy efficiency imperative

November 2021 Radar

GSMA Intelligence and Mobile World Live partnered to bring a new Radar series to the industry, focusing on the impact of new technologies in the mobile and wider TMT sectors. The series includes a full in-depth report and live events, to offer our partners the opportunity to position themselves as thought-leaders.

The November edition will focus on the telecoms industry imperative to reduce energy emissions
The telecoms industry accounts for 2-3% of total global energy consumption; its own path to net zero will play a significant role in helping nations do the same at a country, and ultimately global, level. There is also a financial rationale. Energy takes up 20-40% of opex and as data traffic rises in the 5G era, costs will increase further short of interventions and large-scale shift to renewables.

Numerous telcos have already announced energy efficiency programmes and publicly reported-on targets to become carbon neutral. Various measures and innovations in network equipment from vendors are fast emerging to aid this transition by optimising RAN performance, such as smarter cooling systems, AI-driven sleep states, and lithium ion batteries.

With this context, we will explore several key questions:

  • How has the strategic and economic logic to become more energy efficient changed for operators?
  • How can today’s networks be upgraded to become more energy efficient?
  • How are new innovations allowing tomorrow’s networks to be the most efficient ever?
  • What is the importance and role of “data pipelines” and real-time analytics for optimising networks’ energy consumption?
  • Which mobile and digital technologies have the most viability to spur decarbonisation for other industries at scale
    over the next 10 years to 2030?
  • What are the delivery and implementation models for telcos, vendors, and other suppliers to vertical sector partners?
  • What are the key barriers still to overcome and what immediate steps can the industry take?

Answering these questions (and more), GSMA Intelligence will deliver a comprehensive assessment and body of insights.

Sponsorship opportunities

In partnership with our sponsors, GSMA Intelligence and Mobile World Live will produce and promote an in-depth report in conjunction with a series of live events, allowing 3 sponsors to benefit from the combined strength of the GSMA’s media and research arms, receiving global exposure to and engagement with business decision makers from across the mobile ecosystem:

Interested in partnering with us? Fill the form below to contact our team!

This opportunity has now ended, thank you for your interest! You can contact info@gsmaintelligence if you are interested in our next Radar edition!

New Radar report: Mobile roaming in a post-Covid world

New Radar series

GSMA Intelligence and Mobile World Live partnered to bring a new Radar series to the industry, focusing on the impact of new technologies in the mobile and wider TMT sectors. The series includes a full in-depth report and live events, to offer our partners the opportunity to position themselves as thought-leaders.

Our September edition will focus on the changing business models and marketplace for mobile roaming.
Roaming revenues were down 10-20% in 2020 as global travel volumes declined due to the COVID-19 pandemic, but indicators suggest a gradual recovery in 2021. This, coupled with underlying technology shifts such as 2G/3G network sunsets and the growth of eSIM, explains why setting up global connectivity agreements is a priority for many businesses now more than ever.

With this context, our Radar report will explore several key questions: 

  • What does a staggered relaxation of international travel rules in 2021/2022 mean for the roaming outlook in different regions?
  • How can operators best set up and manage roaming agreements given the sunsetting of 2G and 3G networks with the parallel rise in LTE and 5G in the customer base?
  • If the model is moving towards a consolidated scale play (so-called ‘hubbing’), does this imply a 5G first mover advantage?
  • What are the trade-offs involved in eSIM use and how can telco operators make best use of it for roaming services?
  • How can roaming models manage IoT connection footprints across multiple countries?

Sponsorship opportunities

In partnership with our sponsor, GSMA Intelligence and Mobile World Live will produce and promote an in-depth report and a series of live events.  An exclusive opportunity for a sponsor to benefit from the combined strength of the GSMA’s media and research arms to reach global senior audiences:

Interested in partnering with us? Contact our team via the form below!

This opportunity has now ended, thank you for your interest! You can contact info@gsmaintelligence if you are interested in our next Radar edition!

Intelligence Brief: Assessing latest developments in SA networks and consumer gaming

As expected, MWC21 Barcelona saw an array of announcements on the leading innovations, developments and partnerships which will shape the future of the industry.

It comes as no surprise, then that as the dust settles post MWC21, most of the announcements and updates from the industry in the last month have focussed more on the day-to-day activities ranging from spectrum, network coverage, M&A and other updates.

From these, we decided to share an update on the latest developments in standalone (SA) 5G networks and consumer gaming.

How long is the SA 5G journey to become mainstream?
Did you know? By mid-August, 15 operators from 12 markets has deployed commercial SA 5G services covering mobile and fixed wireless access (FWA).

And 90 operators from 45 markets, around 38 per cent of operators which have either launched or plan to launch 5G, had also announced plans for SA deployments (conducting trials, and forging infrastructure and solution partnerships) after having initially launched non-standalone (NSA) 5G.

SA networks are expected to be one of the key enablers for myriad 5G use cases across enterprise and consumer markets. This explains why the investment in these networks is a natural step for operators in their 5G journey.

A recent GSMA Intelligence survey found operators foresee the following as top benefits from deploying SA networks (see chart, below, click to enlarge).

[1]

The momentum and progress is also reflected in the following announcements from operators sharing updates on their coverage plans, new launches, partnerships, and trials (see table, below, click to enlarge).

[2]

So what? The true success of SA 5G will only happen when it becomes more mainstream. How long this will take, therefore becomes one of the key questions to answer.

Any network evolution is a gradual process and can take anywhere from months to years depending on the specific operator circumstances, strategies and investment decisions. However, referencing the lifecycle of existing LTE networks, based on GSMA Intelligence data covering 150 operators, it took an average of two-and-a-half years to upgrade from LTE to LTE-Advanced. This does not suggest a direct correlation for understanding the lifecycle of an SA upgrade from NSA, but it serves as a good analogy.

LTE-Advanced, of course, was a technical advancement on existing LTE networks, whereas a move from NSA to SA will likely be more significant for most operators and might take similar or more time than LTE upgrades. It will be interesting to see how long it takes for SA networks to become mainstream.

Meanwhile, in the near- to medium-term, building on established coverage of LTE, NSA will continue to do the heavy lifting of 5G, but operators still need to incorporate SA network planning in their long term roadmap.

Related reading:
5G SA means business – but also consumer [3]
5G SA networks are going global, ready to become mainstream [4]

Operator opportunity in shifting gaming behaviour
Did you know? A GSMA Intelligence consumer survey found 60 per cent of the adult population across 20 developed countries play digital games at least once a week. But what percentage of gamers pay for these?

On average, only a third of gamers pay for games. The recent gaming surge among consumers coupled with this presents monetisation opportunities in the gaming ecosystem.

Not only this, the survey also brought to light shifting consumer behaviour.

A preferential shift to gaming on smartphones (thanks to a multitude of games available on cloud platforms, affordable smartphones, and the increasing availability of 5G networks and devices).

Gaming is now for every age group, however the proportion of people playing varies among different age groups: 72 per cent of 18 to 24 year-olds play games at least once a week, while 42 per cent of people aged 65 and over do so.

Undoubtedly, the changing consumer behaviour and surge in gaming creates new monetisation opportunities for operators beyond connectivity or upselling larger data packages, and also creates opportunities for other players in the gaming ecosystem. This is also corroborated in the following recent developments in industry on the gaming front (see table, below, click to enlarge).

[5]

So what? It is clear the industry sees an opportunity in gaming and is making progress towards trying to capture it. The question then becomes what are the options available to operators for monetising the opportunities in gaming and what success will look like.

Drawing insights from the same GSMA Intelligence report [6], there are four routes available for operators to capitalise on the opportunities: two in B2C (selling third party games, developing in-house games); and two in B2B (offer networks services including edge and private networks to gaming and media companies, or develop e-sports products).

Operators will derive their success in the form of new revenue, premium customer base and reduced churn, alongside other benefits highlighted in the report.

Now, which route to take will then depend on some underlying factors such as market profile, operator network assets and their strategies.

Clearly the gaming industry is expected to grow manifold in the coming years and it’s time to capitalise on the opportunities.

For more detailed insights related on consumer gaming behaviour, the options available to operators and the underlying factors please refer to the following GSMAi publications.

Gaming comes into its own: capitalising on shifting consumer behaviours [7]
Consumer gaming: assessing the new revenue opportunity for operators [8]

All the above analysis is based on news curated by GSMA Intelligence’s team of analysts and taken from their Industry Updates feed, available here [9].

– Radhika Gupta – head of data acquisition, GSMA Intelligence

The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.

[1] https://www.mobileworldlive.com/wp-content/uploads/2021/08/GSMA_Intelligence_operatorsurvey.jpg
[2] https://www.mobileworldlive.com/wp-content/uploads/2021/08/GSMA_Intelligence_5G_partnerships.jpg
[3] https://data.gsmaintelligence.com/research/research/research-2021/5g-sa-means-business-but-also-consumer
[4] https://data.gsmaintelligence.com/research/research/research-2021/5g-sa-networks-are-going-global-ready-to-become-mainstream
[5] https://www.mobileworldlive.com/wp-content/uploads/2021/08/GSMA_Intelligence_gaming.jpg
[6] https://data.gsmaintelligence.com/api-web/v2/research-file-download?id=60621093&file=230621-gaming-consumer-behaviours.pdf
[7] https://data.gsmaintelligence.com/research/research/research-2021/gaming-comes-into-its-own-capitalising-on-shifting-consumer-behaviours
[8] https://data.gsmaintelligence.com/research/research/research-2021/consumer-gaming-assessing-the-new-revenue-opportunity-for-operators
[9] https://data.gsmaintelligence.com/industry-updates

August 2021 in telecoms: what can’t you miss?

CURATED: GSMA Intelligence takes on Standalone networks and consumer gaming developments

As expected, MWC Barcelona saw an array of announcements on the leading innovations, developments, and partnerships that will shape the future of the industry. It comes as no surprise, then, that as the dust settles post MWC, most of the announcements and updates from the industry in the last month have focussed more on the day-to-day activities ranging from spectrum, network coverage, M&A and other updates.

For this edition of CURATED, based on our Industry updates, we bring you the latest developments on 5G SA networks and consumer gaming alongside our views on what these developments indicate and how they are shaping the future of industry.

5G SA: How long is the journey to become mainstream?

Did you know…

By mid-august, 15 operators* from 12 markets have already deployed commercial 5G services on Standalone (SA) networks. And, 90 operators* from 45 markets, representing around 38% of operators who have either launched or planning to launch 5G, have also announced plans for SA deployments (conducting trials, forging infrastructure and solution partnerships) after having initially launched 5G on non-standalone (NSA) network. Standalone (SA) networks are expected to be one of the key enablers for myriad 5G use cases across enterprise and consumer markets; this explains why the investment in these networks is a natural step for operators in their 5G journey.

According to a recent GSMA Intelligence survey, operators foresee the following as top benefits from deploying SA networks.

Source: GSMA Intelligence Network Transformation Survey 2021

The momentum and progress is also reflected in the following announcements from operators sharing updates on their coverage plans, new launches, partnerships, and trials:

ThemeIndustry Update
TrialAug 4: StarHub launches 5G Standalone market trial
July 27: M1 launches 5G Standalone market trial
LaunchJuly 16: KT launches commercial SA 5G network
Test new featuresAug 3: Nokia achieves 5G SA carrier aggregation with Taiwan Mobile
July 28: M1 and Samsung deploy 5G VoNR service on 5G SA network
PartnershipsJuly 19 : Taiwan Star Telecom selects Nokia to extend its 5G footprint
July 17: Vivo partners AIS to conduct network test
July 16: Movistar contracts Ericsson, Nokia for 5G SA deployment
Coverage updatesJuly 27: M1 plans to reach 75% nationwide coverage with its 5G SA network by the end of 2021

So what?

The true success of 5G based on SA will only happen when it becomes more mainstream. How long this will take, therefore, becomes one of the key questions to answer! Any network evolution is a gradual process and can take anywhere from months to years depending on the specific operator circumstances, strategies, and investment decisions. However, referencing the lifecycle of existing LTE networks, based on GSMA Intelligence data, it took operators (data used for 150 operators) an average of around 2.5 years to upgrade from LTE to LTE-Advanced. This does not suggest a direct correlation for understanding the lifecycle of an SA upgrade from NSA, but it serves as a good analogy. LTE-Advanced, of course, was a technical advancement on existing LTE networks, whereas a move from NSA to SA will likely be more significant for most operators’ and might take similar or more time than LTE upgrades. It will be interesting to how long it takes for SA networks to become mainstream.

Meanwhile, in the near to medium term, building on established coverage of LTE, NSA will continue to do the heavy lifting of 5G but operators still need to incorporate SA network planning in their long term roadmap.

Related reading:

5G SA means business – but also consumer
5G SA networks are going global, ready to become mainstream

*Number of operators includes both Mobile and FWA 5G launches

The shift in consumer gaming behaviour and opportunities for operators thereof

Did you know…

According to a GSMA Intelligence consumer survey: 60% of the adult population across 20 developed countries play digital games at least once a week. But, what percentage of gamers pay for these? On average, only 1/3rd of gamers pay for games. The recent gaming surge among consumers coupled with only 1/3rd paying for them presents monetisation opportunities in the gaming ecosystem.

Not only this, the survey also brought to light the shifting consumer behaviour:

  • A preferential shift to gaming on smartphones (thanks to multitude of games available on cloud platforms,
    affordable smartphones, and the increasing availability of 5G networks and devices)
  • Gaming is now for every age group, however, the proportion of people playing varies among different age groups.
    72% of 18–24 year-olds play games at least once a week, while 42% of people in the 65+ age group do so

Undoubtedly, the changing consumer behaviour and surge in gaming creates new monetisation opportunities for operators beyond connectivity or upselling larger data packages, and also creates opportunities for other players in the gaming ecosystem. This is also corroborated in the following recent developments in industry on the gaming front:

ThemeIndustry Update
Partnership for third party sellingJuly 30: Movistar partners Microsoft to offer Xbox Game Pass Ultimate to customers
July 16: Sri Lanka Telecom partners with Swarmio to launch gaming platform
E-sports launchJuly 27: Ooredoo Qatar, in partnership with Quest, launches eSports brand
Cloud gaming launch in partnershipJuly 24: Facebook launches its Cloud gaming service on iOS through a web app

So what?

It is clear that the Industry sees an opportunity in gaming and is making progress towards trying to capture it. The question then becomes what are the options available to operators for monetising the opportunities in gaming and what success will look like. Drawing insights from the same GSMA Intelligence report, there are four routes available for operators to capitalise on the opportunities: Two in B2C (selling third party games, develop in-house games) and two in B2B (offer networks services e.g. edge and private networks to gaming and media companies or develop e-sports products). Operators will derive their success in the form of new revenues, premium customer base, reduced churn alongside other benefits highlighted in the report. Now, which route to take will then depend on some underlying factors such as market profile, network assets of operators, and their strategies?

Clearly the gaming industry is expected to grow manifold in the coming years and it’s time to capitalise on the opportunities.

For more detailed insights related on consumer gaming behaviour, the options available to operators and the underlying factors please refer to the following GSMA Intelligence publications:

Gaming comes into its own: capitalising on shifting consumer behaviours
Consumer gaming: assessing the new revenue opportunity for operators
Consumer gaming in the 5G era: Is there a new opportunity for operators

Finally, do you know that…

All of the above analysis is based on news curated by our team of analysts, and taken from our Industry Updates feed. Visit our feed today for more of the news shaping the mobile industry of tomorrow. It comes without interference!

By Radhika Gupta, Head of Data Acquisition, GSMA Intelligence

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Intelligence Brief: What do latest 5G-Advanced specs hold?

Last week saw the release of a white paper focused on the 5G-Advanced mobile core.

As is often the case with these sorts of technical white papers, titling erred on the side of word count versus catchiness: 5G-Advanced Technology Evolution from a Network Perspective – Towards a New Era of Intelligent Connect X.

Broader visibility wasn’t helped much by a release in the middle of summer, at the tail end of earnings season and as the Olympic Games were winding down. Combined with an APAC-focused contributor list, you shouldn’t beat yourself up too much if you somehow missed this.

And yet, a source company list which includes Ericsson, Huawei, Nokia, Samsung, ZTE, KT, SK Telecom and every major mobile operator in China makes this something to pay attention to. It’s not every day fierce competitors collaborate on future forward market messaging and what they agree on is telling.

What’s it all about?
While the whitepaper title won’t win any awards for concision, it does manage to capture the key themes. Three terms, in particular tell you everything you need to know about the content: 5G-Advanced; network perspective; and intelligent connect X.

The first, 5G-Advanced is a 3GPP term for the evolution of 5G, but one which stops short of what we might get with 6G someday. Think new goals and capabilities for 5G networks, services, and operators. The term network is a broad one. Here, however, the network perspective is firmly centred on the mobile core. Yes, 5G-Advanced will touch the RAN as well as the core, but the paper avoids the former to remain focused.

And the final term? Intelligent connect X isn’t a commonplace industry term. However, it does capture the notion of intelligently connecting multiple different stakeholders along with a diverse set of user types and devices. To that end, it conveys 5G-Advanced aspirations fairly well.

What will operators need to support?
In the early days of 5G R&D, discussions of what the next generation would bring focused almost exclusively on use cases versus technologies. It’s only logical, then that discussions of 5G-Advanced would follow suit, and here the whitepaper makes a case for key market drivers across a number of dimensions.

5G versus 6G. We all know 6G is coming, but is still years away. Yet, as the paper argues, “the current capabilities of the 5G network are still insufficient,” for executing on the 5G vision. To this end, enhancements in line with 3GPP Rel-18 and beyond are coming.
Consumer versus enterprise. 5G was built to address business and consumer needs. To its credit, then, the paper highlights 5G-Advanced must, “meet the needs of personal consumer experience upgrades and digital transformation of the industry.” Of course, where enterprise verticals are a well-understood revenue opportunity for operators, their needs dominate the whitepaper’s context setting.
IT versus OT. Early on, the paper notes “in addition to ICT technology, there will be more demand from production and operation in the future.” This is a nod to the need for IT and OT integration as IoT further penetrates the enterprise segment.
Vertical versus vertical. Any recognition of 5G touching on OT demands must acknowledge different verticals have different needs. Or, as the paper puts it, “businesses in different industries…need the network to provide them with a differentiated business experience”.
Cloud versus edge. Against the backdrop of new low-latency applications, the paper minces no words in stating “the network edge is the centre of future business development”. Recognising operators are looking to meld edge cloud and central cloud assets, however it also asserts the need for 5G-Advanced to “integrate the characteristics of cloud-native and edge-native”.
Fixed and mobile. As with the discussion of differentiated vertical demands, a 5G-Advanced focus on the enterprise requires acknowledging fixed and mobile networks will need tight coordination, or “convergence of fixed network and mobile network”. Of course, with 5G tackling residential broadband use cases, this applies to home networks as well.

What will help operators succeed?
If there is one takeaway from the whitepaper’s discussion of market drivers, it’s that 5G-Advanced will need to support an increasingly broad set of industry requirements. Different device types and vertical demands, IT versus OT processes and protocols, and diverse network topologies.

To do so, three key technology advancements and trends get much of the paper’s focus.

Convergence. To be fair, convergence is more of a concept than a technology. But, considering the market drivers noted earlier, it is the concept which ties all of those drivers together. Convergence across different technology generations, fixed and mobile networks, diverse cloud localities (local versus central), and enterprise IT and OT domains. And, based on a broad set of whitepaper contributors, convergence across the views of diverse ecosystem players.
Distributed edge. I’ve mentioned edge computing a number of times already, so it shouldn’t be surprising to see it pop up as a key 5G-Advanced tech cited in the whitepaper. From a convergence perspective, the use cases are myriad, including the integration of fixed and mobile enterprise apps, or apps at the edge of multiple generations of technologies. Digging deeper into the enterprise, the role of edge in supporting private networks, low-latency applications, and applications where data needs to remain on premise is clear. And none of this should obscure the role of edge in supporting low-latency consumer applications. Of course, these dynamics are not exclusive to 5G-Advanced or waiting for its arrival. But the market shifts and demands driving 5G-Advanced development will only serve to make the edge more important.
Intelligence. If the idea of converging an extremely disparate set of use cases and service requirements seems like a dauting task, that’s because it is. And, if the idea of converging disparate networks and network localities (from the network core to the edge) seems daunting, that’s because is it. Success, then, will require support which goes beyond standard human assets and skills. This is why the paper spends a lot of time on the role of AI. For network set-up, maintenance and optimisation. For service set-up, slicing orchestration and SLA monitoring. For consumer and enterprise end-users. Again, the move to pervasive AI isn’t new or unique to 5G-Advanced. But, if there’s one technology message the paper tries to convey, it’s that 5G-Advanced will drive AI forward.

To be fair, there isn’t much that is incredibly surprising in the whitepaper. Its aim is to outline a roadmap of how 5G-Advanced can (or should) support industry goals. Where those goals are generally agreed on, there shouldn’t be too many surprises. At the same time, like many roadmaps, there is some good and bad news to consider.

The bad news is much of this isn’t new. The industry has been talking about enabling verticals, edge computing, convergence and AI for years. Any discussion of how 5G-Avanced involves all of this suggests we haven’t been successful.

Ultimately, this probably isn’t bad news as much as it is just reality. The good news, then, is we know what will help to support these aspirations and the industry is intent on making them a reality.

– Peter Jarich – head, GSMA Intelligence

The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.