Whenever 5G is mentioned, the conversation seems to inevitably shift to 5GNR (New Radio) as the driver for the diverse use cases that will come. Meanwhile, all those 5G core innovations are pushed to the margins, with maybe a mention of network slicing. These same pundits like to tell people that 5G is still years away and to keep building out their 4G cores until it arrives. In reality, what should actually be talked about is standalone 5G core architecture. Sinking investments into a sub-optimal, closed 4G network isn’t biding your time wisely – it’s burying an opportunity.
Let me explain. Traditional mobile cores were designed to support a “one size fits all” model where voice and data services dominated the landscape. And that was understandable in a world where most networks had few service differentiations. When NFV arrived, communications service providers (CSPs) began to look more closely at cost-saving opportunities – but not at the service opportunities – presented by a virtualized Evolved Packet Core (vEPC). What they missed was the fact that next-generation services would require a radical transformation in the mobile core architecture beyond virtualization, specifically around areas that address high throughput, low latency, and high reliability. This radical transformation led to the idea of a standalone 5G core architecture.
Your cloud vendor matters… a lot
On the road to the future, CSPs need to question if their current network strategy is open to the changes and disruption that 5G will bring. For example, are they partnering with cloud-native companies or with legacy vendors whose cloud strategies are mostly air? If you’re working with a true cloud partner, you should already have a standalone 5G network in place or in process. Otherwise, you won’t be able to support the new DevOps models that will drive the revenue streams for 5G services.
Beyond that, a bigger question is whether your network is ready for 5G. Is your network infrastructure optimized and adaptable to change? 5G network should be flexible enough to deploy on public clouds, hybrid clouds, VMs or bare metal. If your 5G strategy isn’t prepared for all those scenarios, you’re seriously limiting your future. I cover this subject of cloud vendor preparedness in my blog, “It’s Time to Come Clean About Cloud-Washing.”
Five ways that a standalone 5G core can drive revenue
Network slicing is just one slice of the 5G pie. There are plenty of ways that a standalone 5G core architecture can drive revenue:
#1. Network Slicing
This is a frequently talked-about capability in 5G where a network is logically “sliced” into different segments with unique policies and capabilities to deliver customized services to an enterprise or group of customers. While network slicing is important in realizing new revenue streams – particularly for enterprise use cases – it can also serve a range of additional use cases such as the accelerated transition to virtualization, operational maintenance or new service rollouts.
#2. The Service Based Architecture (SBA)
The SBA enables network functions and external systems to communicate using web-based APIs. For a CSP making the transition from telco-native to cloud-native, this can be a seismic shift. Forget about the days when you needed to understand dozens of telecommunications protocols in order to make a simple connection. In SBA, services can register themselves and subscribe to other services, or new services can be introduced, using the same API patterns. For the first time, a network’s data and services can be exposed in a standard, secure and comprehensible way to innovative third-parties in order to create better services.
#3. Integrated Gi-LAN Services
I wrote about the value of an integrated virtual probe and analytics solution in an earlier blog (“The Intelligent Data-Centric Network”). With powerful, actionable customer insight, CSPs can rapidly create personalized targeted offers, promotions, and service bundles to attract new customers and grow revenue. Affirmed is unique in this space, as we’re the only company to provide a single platform for value-added services such as security, video optimization, TCP acceleration, and parental control that enables a unique and differentiated experience on a per-flow basis.
#4. Multi-Access Edge Computing (MEC)
Formerly known as mobile edge computing, multi-access edge computing (MEC) is yet another exciting area for growth that requires a high-performance, reliable, and scalable mobile 5g core. Affirmed’s Cloud Edge (ACE) is a MEC-based solution that allows CSPs to rapidly deploy and monetize use cases such as content delivery networks (CDNs), augmented/virtual reality, autonomous vehicles, drones, IoT, private LTE/5G for enterprise and location-specific services (e.g., in-store retail, advertising, etc.).
This will be critical in the future, as CSPs will need to scale in the hyper-connected societies of tomorrow. The CSPs that execute automated service provisioning and service assurance well will reap the benefits of faster time-to-revenue and higher customer lifetime value.
Not all mobile core vendors can deliver on the promise of 5G in the form of ultra-reliable, low latency, high-throughput networks. In fact, most of them cannot deliver this because of fundamental limitations in their technology, operational challenges, and the double-sided desire to protect their legacy revenue streams. But all this raises an interesting question: If your vendor has an agenda that doesn’t align with your vision of the future, where are you headed?
Make no mistake: 5G is still up for grabs. Someone is going to make a lot of money on new 5G services. It could be the Googles and Amazons of the world – and it probably will be, to some extent – but CSPs have the potential to be the real winners in the battle for 5G services revenue. So what’s your competitive advantage: a network experience that feels like a slightly faster version of 4G or one that completely transforms the user experience by delivering better experiences and driving innovative new services to market quickly? When you need a standalone 5G network, only one truly stands alone: Affirmed Networks.