Robert Kompany - Principal Analyst
The mobile network operators (MNOs) that have deployed 5G networks are trialing 5G next generation core networks; however, only about 20 MNOs, all of which are Tier 1, had deployed commercial 5G cores by the end of 2021. Omdia forecasts that 5G core revenue will reach $1.9bn by 2025, over a five-fold increase since 2020. Spending on 5G core will only outstrip the 4G evolved packet core (EPC) from 2023.
Contrary to previous generations, 5G will give MNOs the opportunity to build a best-in-class stand-alone (SA) core using multi-vendor network functions (NFs). This will improve their network capabilities and programmability by not having to rely on single vendor solutions. At MWC, expect companies to announce new automation and orchestration toolkits that help these MNOs better manage the pool of multi-vendor NFs and deliver innovative use cases to better monetize their networks.
Building a 5G core service-based architecture (SBA) using cloud-native principles is no small feat, however, and requires significant software skillsets, which many operators do not have. AT&T outsourcing its core network division to Microsoft in mid-2021 has set the scene for new announcements by hyperscalers.
MWC announcements will focus on the results of this partnership and how other hyperscalers plan to help MNOs, especially Tier 2 and Tier 3, with limited inhouse skillsets and resources, that want new deployment models to better monetize and to be competitive.
In the new age of multi-vendor core, we expect other vendors at MWC to announce new engagements with the ecosystem of app developers and other device manufacturers that will help MNOs develop services and use cases beyond mobile broadband (MBB).
Microsoft will leverage its learnings from the 5G cloud core partnership it announced with AT&T in mid-2021 to announce new operator partners keen to deploy their 5G SA cores on Azure cloud platform. Microsoft will also demonstrate new use cases that will utilize its 5G core platform and satisfy operators’ data security concerns.
Nokia is a forward thinking and trusted end-to-end telecom equipment vendor. Expect Nokia to break new grounds as it makes announcements about new disruptive alliances with ecosystem players, such as app developers and Industry 4.0 enterprises to deliver services beyond just mobile broadband and to leapfrog many of its 5G core competitors.
In the 5G SA core era, operators will need partners that will help them build a multi-vendor best-in-class network. Oracle will bring out its core network functions together with its integration and automation capabilities, which will deliver on the promise of the SBA to support MNOs deliver use cases that are currently beyond the capabilities of monolithic solution vendors.
You can meet with Omdia's expert team at the following events:
Huawei Global Analyst Summit (April 12-14, Shenzhen)
5G World (18-20 October, Amsterdam)
5G Core (November, location TBD)