ARTICLE: 5G is coming to enterprises and everyone will be a winner

By: Upendra Pingle,

Senior Vice President of Smart Cellular Networks

A year ago, industry observers saw the evolution of 5G moving beyond the macrocellular environment toward more specialized deployments of distributed antenna systems (DAS) in large public venues. Stadiums, pavilions and even transport hubs were (and are) ideal for 5G to handle extremely high demand and provide secure connections at points of sale and ticket validation kiosks, for example.

Today in the United States, major cellular network operators are rapidly advancing their 5G deployments in sports stadiums and other large public venues, proudly touting their capabilities to a multimedia-hungry crowd. Similar deployments are also occurring in Europe, the Middle East and Asia.

Now, the question is, what’s next for 5G in 2024? My expectation is that 5G will continue to trickle down to become an even bigger player for enterprise connectivity needs. As was the case in large public venues, the availability of 5G will be a catalyst for the evolution of the business models of mobile network operators (MNOs).

Convergence in figures: income and costs
For business networks to do more, they have to be more; That is, they must be more agile in what they can do and how they do it. Convergence is the buzzword of the moment, but it is not a single, simple concept. It can be applied to various deployments based on business cases, but whether it is a converged 5G/Wi-Fi network, a converged O-RAN and DAS/small cells, or a converged public and private network, in each case, to ORMs are about simplifying the architecture and monetizing their services.

First, let’s look at the income opportunities. 5G networks in B2B companies represent a key opportunity for mobile network operators to monetize their converged network offerings. A recent survey conducted by GSMA (discussed in this webinar, free registration required) revealed that 83% of MNO CEOs see their enterprise and government customers as their biggest revenue opportunity for 5G deployments.

The same survey showed that almost two-thirds of MNOs consider private wireless networks an important part of their business strategy. Without discounting considerable consumer interest in 5G-powered services for things like real-time gaming, the B2B business is clearly the strongest 5G opportunity for mobile network operators in 2024, driving 5G indoors across networks. Local public and private 5G.

The reasons for this interest in the business space are many, but here are some of particular interest:

  • Scalable enterprise services mean that both MNOs and third-party operators can sell a local 5G network for telephony today and expand the value of the network later. Once the investment in deployment is made, businesses can evolve to adopt these services on a more affordable OpEx basis.
  • Premium pricing options based on 5G service levels – starting with basic 5G coverage and expanding capacity for more bandwidth-intensive multimedia or VR/AR as needed – allow MNOs to allocate greater 5G bandwidth to companies that are willing to pay for it. They can even give companies internal control of sensitive private network applications.
  • IoT and other value-added services represent new revenue opportunities for converged networks that integrate IT and OT networks, managed centrally by the MNO through a network-as-a-service (NaaS) relationship. These relationships are long-lasting: once started, they tend to persist and grow, and long-term revenue can grow with them.

Second, let’s consider the potential for cost savings. MNOs are increasingly able to offload the costs of 5G network deployment, in whole or in part, to the companies they serve, expanding the revenue stream beyond that generated by transporting traffic. The latest advances have made this business model even more attractive due to the multiple efficiencies it allows, namely:

  • Converged networks are becoming simpler , integrating multiple wireless networks into unified (or even virtualized) services. It means less overhead infrastructure, less manpower and expertise to deploy that infrastructure, greater opportunities for remote optimization, monitoring and management, and, in fully digital front-end networks, it can mean eliminating more than 90% of power and space to maintain the head of the network.
  • The flexibility of O-RAN means that both mobile network operators and neutral hosts can deliver scalable, secure and resilient 5G enterprise networks at substantially lower cost. O-RAN’s CU/DU network agnostic interoperability can be integrated with an all-digital DAS compatible with O-RAN and/or small cell networks using the combinations of vendor components that best suit the specific business environment. Additionally, because O-RAN technology involves such a diverse supply chain, it is resistant to bottlenecks and price shocks.
  • O-RAN also streamlines multi-MNO deployments . The standardized and pre-integrated connectivity of ORMs allows companies to incorporate more ORMs.

faster. And since everything is 100% digital, MNOs gain the flexibility of being able to leverage licensed spectrum, private spectrum, or even sliced ​​spectrum as a monetization opportunity.

It is also worth noting that many of these cost reduction factors provide an important secondary benefit to the sustainability profile of the enterprise network, since they require less material, power and cooling than older analog networks. This green dimension can add more depth to an already strong product offering, as many companies maintain public commitments to follow sustainable practices. The actual benefit in each case is determined by a large number of factors unique to the implementation, but there is almost always an argument in favor of sustainability.

What companies want – and expect – from 5G converged networks

The capacity, low latency and high security inherent in 5G are key advantages across a number of operational categories, such as voice and video, IoT device connectivity and much more. Enterprises can take advantage of the next level of converged local networks to introduce 5G into their facilities, but businesses expect simplicity of operation and a minimal infrastructure footprint.

Although applications are as diverse as the companies that use them, a common expectation that both MNOs and third-party operators will increasingly encounter is the need for simplicity and management that is as close to hands-off as possible. Companies that invest the capital necessary to deploy these networks do not want to double the expenses by hiring IT staff to manage them.

For mobile network operators, this is where their own branded offerings, NaaS and analytics can help put converged 5G networks back on the table for those companies that would otherwise not be willing to afford the full cost of ownership that comes with a network that changes the business.

2024 will be the year of enterprise 5G

The 5G wave continues to advance. This year it will arrive at your nearest office, business or factory. Mobile network operators will benefit from enterprise interest in converged 5G networks. Like the ongoing rollout of 5G in large public venues, the downstream market represented by the diverse enterprise category is emerging as a key opportunity, even in a struggling economy.

Businesses need stronger, more flexible connectivity between employees, customers, devices and applications. DAS and O-RAN-enabled small cells offer all of this, along with a highly diversified product portfolio resilient to market disruptions. Mobile network operators stand to gain a lot because deployment costs are borne by businesses to a greater extent than public venues, ongoing sales opportunities are many and varied, and remote NaaS business models create reliable, long-term revenue streams. as they bring more value to key enterprise customers.