Shared spectrum, vran and neutral host
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1 Shared spectrum, vran and neutral host An opportunity to shake up the mobile services landscape Caroline Gabriel, Research Director Rethink Technology Research
2 Mobile enterprise and IoT need wider range of deployers MNOs remain king of wide area mobile umbrella But have largely failed to make a business case for IoT or indoor Misalignment between industry needs and MNO economics More service providers must be able to define and control their own networks 5G will be a better performance, no doubt about that, but the business case isn t there Gavin Patterson, BT The business case for enterprise 5G is not at all clear Lee Yong-gyoo Lee, head of 5G, KT 5G is still just about attracting attention at MWC in Barcelona Vasyl Latsanych, CEO, VEON
3 Shared spectrum lowers barrier to entry for non- MNOs, but it is not enough on its own Several key enablers are emerging to improve the business case MulteFire esim MEC/Fog Shared spectrum NFV and vepc LTE evolution Small cells 5G New enterprise network NWaaS/ Slicing
4 Key changes could improve the business case for density, to support mobile enterprise and 5G The networks are neutral host, supporting third party service providers with specialist expertise, in a more flexible way than the traditional MVNO agreement. Networks are rolled out where demand is identified, rather than on a national scale. Localised or vertical deployments, with the superior economics of targeted build-out. Cloud-based services can reduce the capital and operating cost of a new network, and support service providers on a pay-as-you-grow basis. Cellular in unlicensed Flexible spectrum allocation Small cells/ edge vepc /vran More operators enabled Enterprise autonomy Local and specialized
5 Those add up to self-contained subnets, accessible to new service providers MVNO Small number, rigid contracts MVNE Scalable, more enterprise focus Local heay MVNO Control own local networks Dynamic MVNO Bandwidth on demand, PaaS MVNO 3.0 Network slicing
6 % of small cells deployed 100% If neutral host is supported, it will greatly accelerate deployment of small cells Architectures are well suited to neutral host e.g. Open Air Interface, nfapi 90% 80% 70% 60% 50% 40% 30% 20% Despite sharing, neutral host will boost small cell numbers by 45% by % % MNOs sharing Neutral host Private or enterprise-deployed Single operator Deployment and management of non-res small cells (% of installed base), by operator type. Source: Rethink
7 ,000 units,000 Combination of edge compute and small cells will drive new uses, improve neutral host case 2, , ,600 1,400 1,200 1, One or more MNOs or telcos Wholesaler/neutral host One or more MNOs or telcos Wholesaler/neutral host Private/vertical operator Enterprise Private/vertical operator Enterprise Deployment and management of non-res small cells integrated with edge compute, by operator type, indoor (l) and outdoor (r). Source: Rethink
8 % of operator Access to dense compute and connectivity will drive new business cases for all operators Video optimisation CDN Venue services Context aware services Low latency sensor apps V2X services VR/AR Self-contained enterprise subnets Mission critical subnets e.g. safety Smart buildings Year 1 Year 4 Top 3 use case priorities, in years 1 and 4 of deployment, for small cells with edge. Source: Rethink
9 Compared to base case Neutral host drives growth for all types of SPs, and for 5G availability % % 160% 140% Investment in 5G Total network operator revenues MNO profits Number of 5G vertical use cases Impact of neutral host on key 5G metrics in developed markets by 2025
10 A critical enabler of neutral host and SP diversity is flexible spectrum policy Unlicensed spectrum is most freely available and in enterprise scenarios, its downsides can be mitigated Regulators must consider dedicating licensed spectrum to new entrants, regional or vertical players etc. Early 5G auctions poorly aligned with most governments 5G visions Higher bands more capacity to earmark slices for industries Unlicensed spectrum Licensed shared spectrum MNO spectrum Licensed spectrum non- MNO Private industry spectrum Other Percentage of neutral host small cell installed base by spectrum type 2025 Source: Rethink
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