Author: Emin Gurdenli

Providing ubiquitous cellular coverage has, naturally, been constrained by the profitability imperatives of the mobile industry. This has been the case in all countries and through all generations of cellular technology from 2G through to 5G and will not change with the arrival of 6G.

Indeed, providing macro-cellular, wide-area coverage at the higher frequency bands being considered for 6G will be even more expensive than in previous G’s. With 3G decommissioning having started in many countries, the actual cellular footprint, at least, for data, and possibly for voice too, is likely to shrink in the years to come (unless the relevant spectrum is promptly re-farmed for 4G and 5G). This effect will be, particularly, noticeable indoors.

Here, we propose two enablers to compensate for such potential deficit and take a practical step towards ubiquitous wireless coverage. A technology enabler and a regulatory one.

“Core-Centric” 6G as enabler for ubiquitous coverage

We believe that the main purpose of 6G should be the enablement of widest possible access, by all people across the world, to digital services and voice. To that end, a novel Intelligent Core Network should be the key feature of 6G which facilitates access to multiple radio access technologies including existing 2G-5G plus the new 6G radio as well as LEO satellite and WiFi whilst also catering for interworking with private networks.

In effect, with such an overarching Intelligent Core, 6G would be a “Network of Networks”, maximising access to wireless connectivity, leveraging all existing infrastructures, as well as new ones, where users can access any radio coverage supported by their device. We have discussed details of this unconventional approach in our previous blog ( https://azenby.com/archives/3107 ) where ‘sum of the parts’ including LEO Satellite and WiFi along with all cellular networks in the country would go a long way towards near-100% coverage for voice and basic data services (for example, messaging, browsing, photos and video clips) at locations where people live, work and play, whether outdoors or indoors.

This approach would safeguard existing investments as it would prolong the life of current architectures and infrastructures. It is also an important enabler for Net Zero ambitions.

“Light-Touch Regulation” as enabler for ubiquitous coverage

As well as the proposed novel 6G concept from a technology perspective, one needs a commercial framework which encourages multi-operator access for users. International Roaming is a good example where a user typically has access to several networks (if not all) in the visited country even though one of those networks might be the preferred partner of the home network provider. Yet, National Roaming is rare. In their home country, the user is constrained to a single network, sometimes they are even restricted to certain technologies through commercial tariffs/packages or devices (for example, 2G and 3G but not 4G and/or 5G etc).

Whilst we are not proposing draconian regulatory measures which might discourage investment, we think that a more innovative approach with more degrees of freedom in the spectrum licensing conditions could be adopted by Governments and Regulators, encouraging more sharing of spectrum and infrastructure and more in-country (national) roaming; and, yes, some obligations for taking coverage to less profitable geographies and locations, too. With such an approach, one would reduce operators building duplicate coverage focussed on profitable areas/locations whilst leaving other areas/locations with inadequate wireless connectivity. As a result, a given amount of total investment by the operators would go much further towards ubiquitous coverage.

In Conclusion

With this technology approach to 6G and a more purposeful direction from the Regulators, we believe that near-ubiquitous wireless coverage is a realistic proposition, even with a lower cost of production.

There is also a significant side benefit of this concept. The Emergency Services of the country would not be constrained to one network provider (as is the case, normally) but instead they would have automatic access to all the networks in the country and use the best network available at the specific location and time where they need it.

We appreciate that this vision is not without its challenges. We will be discussing some of the challenges and potential solutions (such as Semi-Autonomous Devices in network selection) in future blogs. Similarly, changes to spectrum licensing and other terms governing interworking amongst different wireless access services (cellular, WiFi, satellite) would need to be handled carefully, in order to encourage telcos to adopt the new approach on one hand and not to reduce competition in the market on the other.

Nevertheless, we believe the prize of ubiquitous coverage is worth the effort and 6G is the catalyst for that. Our industry has done a great job in giving mobile communications to the masses over the last 3+ decades. Now, we have an opportunity to excel. Let’s go for it.

If you wish to discuss these proposals with us and help shed light on the art of the possible to get 6G right, then why not get in touch with us here.

With 6G gaining more visibility, naturally, there is a discussion on a new air interface, and, particularly, on the use of millimetre wave frequencies. It’s almost like 6G is synonymous with millimetre waves and the air interface is the starting point. Traditionally, Radio Access has dominated the development of the next G, as we’ve travelled from 2G to 5G.

That should not be the case for 6G.

The purpose of 6G should be the enablement of widest possible access, by all people across the world, to digital services and voice, and that a novel Intelligent Core Network should be the key feature of 6G which facilitates access to multiple radio access technologies including existing 2G-5G plus the new 6G radio as well as LEO satellite and WiFi whilst also catering for interworking with Private Networks.

In effect, with its overarching Intelligent Core, 6G would be a “Network of Networks”, maximising access to wireless connectivity, leveraging all existing infrastructures as well as new ones.

The Intelligent Core should be the starting point in 6G, followed by Semi-Autonomous Devices and finally, the Multiple and Diverse Access Media. In the latter, that the spectrum is no longer exclusively assigned to a given G should be the norm, (rather than the exception, as in re-farming).

If one starts with the purpose of 6G being the enablement of widest possible access, by all people across the world, to digital services including those provided by “things” (such as IOT, robots, drones, autonomous vehicles, virtual reality and similar), and in particular, provided or supported increasingly by AI, voice taken for granted, of course, then one arrives at 6G being a “facility” which:

• Leverages existing 3GPP platforms, 2-5G, making sure coverage of remote areas and people is not compromised 
• Caters for a multiplicity of diverse access media where geographically small but high-spec 6G islands coexist with wide-area 4G-5G common access layers, along with more localised Private Networks 
• Includes extensive use of Private Networks, whether offered as slices by large MNOs or truly private deployments including shared frequencies and different protocols such as CBRS.
• Embraces WiFi, LEO Satellite,
• Embraces Fibre and FWA as intrinsic parts of the concept,
• Exploits new frequency bands through a new air interface but not exclusively, so that 4G and 5G technologies also utilise those frequencies where appropriate,
• Caters for coexistence of mmw frequencies in use for cellular as well as PTP, PTMP backhaul and FWA in shared fashion. 
• Considers Fibre an intrinsic part of the 6G concept and caters for it to be designed in from the outset, for example, when deploying 6G hotspots which could be connected by dedicated mmw or fibre backhaul with super speeds and latency,
• Empowers devices for Authentication and Mobility Management across above diverse landscape of wireless networks,

In this heterogenous environment, the 6G Intelligent Core and the “empowered” Devices perform overall Authentication and Mobility Management. The 6G Intelligent Core enables the Device with the knowledge of specific protocols of the networks the Device is about to access.

Needless to say, one no longer has devices restricted to given operators network(s); instead, they enjoy an extensive use of National Roaming which is administered by the 6G Intelligent Core, most probably, making good use of e-SIM functionality as part of that overall control or mediation.

Given the diversity of protocols (6xGs, WiFi, LEO Satellite, CBRS etc) and the range of frequency bands in use, it will, probably, be necessary to make some sacrifices in seamless mobility and even in the frequency bands/types of networks accessible by a given device type.

As mentioned at the beginning, the 6G Intelligent Core is a critical and central part of this vision. It has overarching reach, has the ability to translate, mediate for the different protocols of the diverse network technologies it enables the devices to access.

In technical media, there is currently, a debate on whether the development of 6G should be through an Evolutionary or a Revolutionary approach. Given above conceptual functionality of 6G, such distinction is not actually appropriate. It is a new concept which has Revolutionary and Evolutionary aspects.

Leveraging existing Gs is obviously evolutionary yet the above idea of 6G Intelligent Core is revolutionary. Extending the life of existing 4/5G networks reduces or delays capital investments, and it can be argued to be better environmentally.

Moving up the frequency bands to millimetrewaves is evolutionary. The new 6G air interface not backwardly compatible with 4/5G would be revolutionary, yet the proposed operation of the 6G Intelligent Core and the Semi-Autonomous Devices might make 6G New Radio look evolutionary. That Security in 6G needs fresh thinking and a revolutionary approach is discussed in another Azenby blog https://azenby.com/archives/3081

That spectrum should not be assigned to 6G exclusively may appear revolutionary but is it really? With Spectrum Aggregation and Dynamic Spectrum Sharing already in use in 4/5G, that is a natural development.

Another aspect of the ITU spectrum strategy and the national Regulators’ policies in the 6G world should be to support network sharing, spectrum sharing/trading, including the availability of more spectrum for shared use, especially given the extremely short re-use distances of millimetre waves and the highly likely small area deployment of 6G New Radios. Some might argue, given the advances in semiconductor technology, that re-use even within a room might be feasible using super-MIMO beam steering. {ref another future Azenby blog} 

Naturally, this vision of 6G has many challenges. Such versatility and intelligence in the 6G Intelligent Core and the enablement of Devices for self-management in the management of authentication and mobility is a tall order, not to mention the range of frequencies those devices would have to cope with; but the prize is worth the effort. Given the never-ending advances in semiconductor technology and AI in the service of telecoms, anything is possible. 

This vision of 6G has a very significant side benefit, too, since the Emergency Services of the country would not be constrained to one network provider (as is the case, normally) but instead they would have automatic access to all the networks in the country and use the best network available at the specific time and location where they need it.

Our industry has done a great job in giving mobile communications to the masses over the last 3+ decades. Now, we have an opportunity to excel. Let’s go for it!

Azenby joined the swarms and throngs at this year’s MWC just to see what’s new and different but most of all, so that we could share with you the view through the Azenby prism on what may be shaping our industry in 2019 and beyond.

As is the tradition these days, the GSMA had a theme for the show and this year it was ‘Intelligent Connectivity’ – with a large dose of AI in the interpretation of “Intelligent”. Always up for a challenge and being a loyal MWC technologist, our intrepid reporters signed up for Breez, the automated entrance process/facility leveraging intelligent Facial Recognition, only to be told on arrival to go through the turnstiles with manual inspection of passes because it would take less time! An early fail for AI but it did redeem itself later in the week.

It did get us thinking about the mobile industry embrace of AI, VR, IoT and of course Intelligent Connectivity and that perfection in one part of the delivery chain is not enough. The entire ecosystem needs to move in step to create joined-up solutions that work. It’s the overall end to end customer experience that matters, not how clever parts of the technology may be. At Azenby we wonder if this nettle is being grasped.

With Intelligent Connectivity comes the need for new security measures and customer protection of data and the integrity of the services being offered. So, Cybersecurity was a big deal at the Congress for two reasons: Firstly people talk a lot about it, and secondly it was the elephant in the room. At Azenby we like to think we are good at spotting these elephants! Mind you, we’ve had security scares on mobiles over the years: Remember all the antivirus products over the years?

Firstly, the open discussion. Virtualisation and additional forms of sharing (be it slicing or multi-tenancy etc) in 5G was always going to shine a light on the inherently higher security risks of adopting new technologies. This, we are glad to say, is well recognised in the industry even though coherent and easily deployable solutions still seem to be out of reach but at least it is the subject of much debate. Part of the challenge is that in the mobile world we always seem to want to ensure backward compatibility with each new generation and thus we tend to stretch legacy security methods to work with new technologies instead of starting from a clean sheet.

Then the aspect that people didn’t want to talk about and that was the industrial wars being fought between the USA and China, and how Chinese vendors are very much in the cross fire, or more accurately in the cross-hairs of the US administration. There were also rumours that the EU is also pulling together a European position on the use of Chinese manufactured equipment in critical national infrastructure. MNOs face a dilemma: Pressure from regulators is growing and talk of ripping out installed equipment intensifies. This is not cheap and the thought of reduced competition from vendors is not appealing to operators. Make it safe please seems to be the preferred option.

All this remained off the main agenda, perhaps with the GSMA wary of upsetting the main sponsor of the event. That is until Huawei themselves decided to tackle the elephant by the tusks and come out with all guns blazing. It must be said from the outset that this is most un-Huawei like, who much prefer to talk about their leading technology and leave the politics to the after-dinner conversations in the restaurants of Barcelona.

Step up to the microphone the Senior Huawei exec Guo Ping, who gave the first truly memorable key note speech at MWC and made the news pages of the world’s press. “Prism, prism on the wall, who is the must untrustworthy of them all?” Wow, a stinging attack on the US administration followed. Snowden comes back to haunt the US once more and is used in evidence by Huawei. Incredible stuff. Not surprisingly, Huawei said once again that it never has and never will plant back doors in its equipment. So there, now we know. But of course, we are none the wiser and at Azenby we tend to think that Nick Read from Vodafone is on the money when he says we need a fact-based discussion and if intelligence agencies really do have a smoking gun, let’s see it. At Azenby we do wonder if from a US perspective its one set of rules for social media giants who have a footloose and fancy-free approach to people’s privacy and a different set of rules for Telco’s, Service Providers and their suppliers. Protectionism seems to be a bigger driver of the arguments than espionage.

Let’s get back to the show’s theme of Intelligent Connectivity, the show floor was once again home to the motor industry, but it was nice to see some trucks this year. There was plenty to be seen on homes, planes, robots, hospitals, agriculture, transport, and even the odd equipment vendor if you looked hard enough. The GSMA is always keen to broaden the base of the show and this year we had the International Olympic Committee participating for the first time along with Formula 1 racing and even the World Wrestling Entertainment were in the ring. Picking through some of the highlights off-piste we learnt that BMW and Daimler are investing €1bn so that we don’t have to own motor vehicles in the future. We like the sound of that! Only for the brave was a demonstration of 5G assisted surgery as a gastrointestinal consultant in a distant hospital advised a team of surgeons who were carrying out an operation in the Fira, over a 5G link. Whatever one may feel about the need for low latency in driver-less cars, I am now all for ultra-low latency when I am lying on the operating table with a surgeon waiting for the next page to download on his tablet! Our gut feel, excuse the pun, is to wait for the technology to prove itself first!

What about 5G? Surely that’s what we all wanted to know about. The headline grabbing announcements did come from 5G phone vendors and that was reassuring to see at congress. The big splashes were the folding screens from both Huawei and Samsung and Xiaomi unveiled a device at MWC for the first time. At Azenby we have been saying 5G doesn’t arrive until the devices do and maybe, just maybe, they may be in the shops this year. The other thing that is on the critical path is Release 16. Please!

Could 5G be the first generation of technology when the devices are ready before the networks? No operator took the opportunity of MWC to announce a 5G launch date. Lots of trials yes, but commercial launches, no. We had differing opinions on 5G depending on where the speaker sits in the eco system and perhaps a bit of vested interest speaking as well. Chuck Robins at Cisco said that for the first time, a new generation – 5G – was going to live up to its hype. Rich Williams from Groupon was very much on the other side of the fence and he said he didn’t know what it was for and what 5G would bring that 4G didn’t do already, albeit maybe faster. Mike Fries from Liberty said 5G is far too expensive to roll-out (to rapturous applause from the gathered MNOs) and Nokia CTO Henry Tirri said MNOs are fixated on the consumer market and that it is the industrial sectors where 2x and 3x revenues lie (to pay for 5G). So, there you have it, take your pick on 5G! At Azenby we do have some sympathy with the view that MNOs are in their comfort zone with consumer products and have long struggled to find the way to make mobile work in other industry segments. Many say that this is exactly what they have to do with 5G, or it will indeed be no more than a faster, slightly costlier version of 4G.

Our view at Azenby is that 5G must be the catalyst from MNOs to drive a paradigm shift in mobile use cases. It has to be much more than gaming (which we are sure is quite a lucrative sector for some businesses) but new verticals in digital health, remote medicine, smart factories and warehouses in addition to smart cities and cars need to be created. The list could be endless, but someone has to take the driving seat to make sure these new frontiers are conquered, and this means MNOs must step out of the comfort zone. Its not about waiting and hoping for a killer 5G App to come along, its about going where no MNO has gone before.

Other things that stood out for us at MWC this year, apart from inflated hotel costs, and restaurant bills, the absence of Mr Zuckerberg and the banning of UBER:

Security again (not the Huawei issue)

We read and heard quite a bit of concern over security in general in the 5G world of the future. It’s not really a 5G question as such but applies to the whole IOT eco system, and even the inherent security of 5G. We see it something like this: IOT brings new types of devices which are unlike the conventional handsets/terminals we know and love today. IOT devices have many different functions, they are smart but not smart enough. This is partly because they need to be cheap and therefore lack the smartness which requires more computer power typically found in smartphones. Therein lies their vulnerability.

Whose Spectrum?

At Azenby, we know only too well the complexities and the high costs of rolling out a new technology. Consumers do appreciate the better service that new technologies bring but are not so keen to pay more for it. It’s a double whammy for MNOs to grapple with. Really, it’s a triple whammy because with each new technology and with growing customer use of smartphones in particular, comes the need for more spectrum. Spectrum doesn’t come cheap.

Regulators the world over demand MNOs speed up the roll-out of new technology but also want to fill the treasury with spectrum fees.  This allows MNOs to complain loudly about the cost of deploying 5G and to ask governments and local authorities to share the burden or, at least, make life easier for deployment. On the other hand, they also still argue that MNOs should be the only licensed spectrum holders. It does sound like defending roaming rates all over again. In the US, some carriers are trying to resist the unlicensed use of CBRS frequencies.

Perhaps the time is right for lighter regulation and more shared and fragmented/regional use of spectrum. Rather than seeing Spectrum as a barrier to entry for new market entrants, MNOs should do as we have said previously and look for new business models and competition which will outweigh the undeniable inherent efficiency of having large contiguous blocks used by one owner.

Revenue Hunting

Over the years, the GSMA have updated their estimation of the value the mobile business world-wide and increasingly we have heard MNOs saying that not enough of the growth is going to them as opposed to the new boys on the block. At Azenby we are clear about the reasons for lack of real MNO revenue growth as we mention above, it’s the failure to break free from the consumer market. MNOs can’t think beyond ‘price plans.’

Let’s face it, MNOs have historically treated the Business segment as though it was just a few more price plans designed for SOHO, SME, LME etc plus a dedicated sales team. We don’t want to be over critical because the available technologies did not give them enough tools to do much more, especially, for mobile-only players. That is about to change however for those MNOs able to embrace the diversity both in technology enablers and new business models, especially allowing for new-breed players (e.g. regional or vertical specialists) and finding ways to coexist and even cooperate with them.

Can they be brave and allow Private LTE/5G (with unlicensed spectrum or within licensed spectrum but with slicing etc) enabling Enterprise to improve its productivity and efficiency? Can MNOs stop being so being consumer-centric and start thinking that they are an ‘enabler’ for Enterprises in new ways they have not practised before. If MNOs need some help with this transition, maybe they have an ally in Nokia who were very clear that “Private 5G for Enterprise using unlicensed spectrum” is part of their 5G strategy.

And finally

Every year the portion of the floor area occupied by non-conventional exhibitors (i.e. not MNOs and equipment vendors) is increasing. We noticed a step change this year. Space vacated by big Telco’s, who are either reducing their footprint and some even not taking a stand/pavilion anymore but just using meeting rooms, is being taken up by the new breed of exhibitors from a wide range of different industries. How much longer will this be the Mobile World Congress we wonder.

If you would like to comment on the view of MWC through the Azenby prism or tell us about what you felt was new and interesting this year, why not get in touch and leave us your comments in the box below.

 

Every telco should have a Virtualisation Strategy and a Roadmap whether it’s a fixed telco, MNO or both. This goes for virtual network operators such as MVNOs and CSPs, too.

Conceived some five or six years ago, NFV is poised to revolutionise the industry. It is a truly ‘disruptive’ technology development.

NETWORK FUNCTION VIRTUALISATION (NFV);

• Together with SDN, is a key enabler for the future world of 5G and Internet of Things (IOT)

• Brings the unit cost of production down radically, not by some percentage points, but by an order of magnitude

• Speeds up time-to-market significantly. It is possible for telcos to move at the innovation speeds of OTT players when they adopt NFV with suitable delivery processes.

• Has the potential to trigger new business models both in the vendor and in the operator space. Diversity in suppliers and in CSPs is inevitable in the future 5G world.

NVF enables true IaaS (Infrastructure as a Service). LTE platforms such as EPC and IMS are already available as a service off the Cloud, today.

IaaS opens up business models where networks are delivered as a Managed Service. Telcos don’t have to build and operate all or some of their networks anymore. They can buy it as a service even on a pay-as-you-go basis with no or little capital outlay.

Virtualisation in a Cloud environment generates efficiencies beyond the direct benefits of NFV, particularly where fixed and mobile networks of a telco get optimised together and so do the NT and IT platforms and organisations.

Also, Groups with networks in different countries can leverage IaaS to share core networks and service platforms in a shared centralised or distributed cloud facility. This strategy would bring organisational efficiencies, as well, of course.

Managed Service delivery of network platforms leveraging NFV breaks down the old payment models. Operators can avoid heavy capital investment requirements traditionally necessary to deploy new technologies like 4G and 5G. Instead, they can pay as they grow. They should be demanding such changes of their vendors.

Heavy, up-front capex burden is replaced by ongoing, pay-as-you-grow opex. Licence-based payment is replaced by a consumption-based model. Purchasing whole infrastructures made of ‘nodes’ is replaced by purchasing functions at a fraction of the old prices and deploying on COTS servers and storage. Coupled with SDN and automation, future unit cost of ownership should be radically lower and consumption-based payments so much more affordable.

Virtualisation, finally, breaks down the protective barriers of major network infrastructure vendors. There is a growing diversity of new players in the NFV eco system who present credible alternatives to the traditional vendors.

Whilst the major vendors appear to have embraced NFV, they continue to do it their way, delaying the true promise of NFV where (1) software and hardware are totally independent, and (2) ‘functions’ are sold as products, not ‘nodes’. Therefore, telcos should look at the upcoming vendors seriously.

Vertical IOT services lend themselves particularly well to the use of virtualised networks where telcos can deploy a dedicated separate core network for IOT in a cost-effective manner. Plus, the fact that IOT, like its forerunner M2M, requires a network solution which can achieve the low unit cost compatible with the low per-subscriber revenues gives IOT an ideal fit with virtualisation.

Similarly, virtualisation is an enabler for network slicing which gives mobile operators a new degree of freedom in running different networks, say, for different speeds and latency in an AI manufacturing environment or when extending the home network services and experience to another country for roaming customers, the latter being particularly relevant for MNO Groups.

Small Cells deployment for enterprise or for public wireless service at major venues is another area where a dedicated virtualised core network becomes attractive proposition for an MNO. Furthermore, it opens up the coverage delivery model where third parties can provide an end-to-end small cells service.

NFV is not, of course, constrained to the core network. Virtualisation is already spreading to the edge. Whilst not as advanced as core network platforms such as v-EPC and v-IMS, Cloud-RAN solutions are emerging, already.

After an exciting start with numerous vendor and operator trials a few years ago, NFV appears to have slowed down in the last year or so. Most telcos appear to be re-evaluating their virtualisation road maps, particularly, looking at their NFV infrastructure (NFV-I) such as data centres and IP transmission networks before building functions over them. Despite this relatively slow take-up by telcos, the NFV solutions available in the market have matured over this period and some are quite viable, now.

Relatively slow development of NFV management and organization (MANO), at least against the initial hype and promise, and concerns over 5G-type latency and reliability appear to have dented enthusiasm. The industry needs to support ETSI to move faster in order to avoid point solutions and/or de facto standards.

Nevertheless, there is quite a significant momentum around virtualisation. Some examples below serve to illustrate the importance of virtualisation to the industry.

• AT&T seems to be setting the pace with their comprehensive virtualisation programme
• Vodafone is also bullish having implemented some early SD-VPNs and is looking at deploying a shared IMS for ten of their businesses globally
• DT and SKT lab-trialled intercontinental network slicing for their future 5G roamers
• Although Orange and Telefonica appear more cautious, they are still running virtualisation programmes
• Leading mobile operators are sponsoring an international programme to accelerate Virtualisation
• Vodafone has contracted Nokia Nuage Networks to connect its global data centres
• Softbank has contracted Affirmed Networks for its virtualised IOT and enterprise connectivity services
• TIM is providing a virtualised VOIP solution for the Italian Post company
• TA Belarus subsidiary, Velcom, has announced that it is moving its entire core architecture to cloud
• Three UK has contracted Nokia to develop its cloud-based core network in preparation for 5G.
• Nokia has shown that network slicing isn’t just for mobile networks by launching their solutions for fixed networks
• Telenor has announced a three-country virtualisation programme ahead of 5G using Ericsson’s Cloud Core solutions.

Given its enormous potential, every telco should;

• Have a Virtualisation Strategy and Roadmap
• Be developing their NFV-I plans
• Be conducting trials and/or small-scale deployments – For example, for M2M or Small Cell deployments
• Optimise their data centres for NT and IT
• Ensure security is built in from the start (https://azenby.com/archives/2562)
• If a global telco, be looking at shared NFV platforms
• Consider Network Slicing in their spectrum strategy
• Conduct six-monthly surveys of the market for solutions and vendors
• Be buying network equipment which is NFV upgradable
• If buying NFV solutions, should be demanding consumption-based pricing
• And should be careful to ensure interworking of functions from different vendors, especially where they might be bringing in new-world NFV vendors alongside their incumbent tier-1 vendors who might not automatically cater for that smooth interworking and integration.

Finally, one doesn’t need to wait for 5G before deploying NFV; there are benefits in the short term on earlier generations of equipment, including new paradigms leveraging NFV for traffic quality and cost optimisation, for instance, in local breakout (https://lnkd.in/dy9qwsr)

Azenby is a forward leaning consultancy. Our specialism is helping mobile operators. We have implemented a number of strategic projects for leading MNOs around the world helping them find ways to increase revenues as well as reducing the cost of doing business. NFV is a real catalyst for both. We believe that MNOs can leverage virtualisation for providing new services to their own customers directly, and indeed, for facilitating a new wholesale market for other service providers needing access to the right technology. Why not get in touch with us to learn more?

Network Sharing is not right for everybody. However, done for the right reasons, with the right partner and in the right way, it can be a game-changer.

Some people think that Network Sharing is a relatively recent development. When you think about it, operators have been sharing networks since mid-90s; since the first MVNO was launched, in fact. Customers knew their providers as brands, not as network operators. So, sharing one’s network with another brand is actually not that radical.

Obviously, here, we are not talking about a MVNO set-up based on a wholesale access agreement. Instead, we are dealing with joint infrastructure development and possibly with joint ownership. The scope of the shared infrastructure, associated services and the technical solution employed can vary quite diversely, from simple site sharing to full active sharing, indeed even spectrum sharing where the regulator consents. Talking of whom, we have observed over the last decade how the regulatory view, at least in more mature markets, has changed on the subject. In the early days of our industry, infrastructure competition was common philosophy with all regulators and an inescapable part of one’s spectrum licences. That’s changing nowadays evidenced by the increasing trend in Network Sharing.

There are lots of good reasons for considering Network Sharing including

• Improving network coverage footprint and the quality of service
• Catching up with and leapfrogging the competition in network coverage
• Getting ahead of competition by sharing investment in latest technology
• Reducing opex and improving future cost base
• Reducing or avoiding capex, especially for roll-out
• Generating free cash flow to reinvest or return to shareholders

Getting it right delivers significant cost and competitive market-facing benefits; the prize is BIG! The benefits of Network Sharing are clearly very attractive. However, putting one in place can be a bumpy journey. So, before you embark upon it, make sure that your rationale and goals are clear. Here are some implications that need consideration:

• Network Sharing requires cooperation with a competitor – this is not a natural thing to do; principally, as you are about to lose market differentiation on network coverage with your sharing partner. Or even worse, you may be strengthening the position of a competitor.
• You are giving up a degree of control over your network strategy – you are about to share the technology roadmap and future evolution of your network to a certain extent, including choice of vendors and timing of technology changes.
• The legal vehicle for implementation and ongoing governance is equally important as the choice of technical sharing solution. Long-term commitment requires both Shareholders’ buy-in. One should not enter into Network Sharing for short-term convenience. It needs underpinning with goal alignment between the sharing partners and with funding commitments backed up by consequences of default.

In conclusion, there is sound rationale for Network Sharing and its adoption is on the rise globally, as:

• Cost pressures on MNOs continue to increase against a backdrop of flat-lining revenues.
• The Regulatory framework continues to evolve positively enabling Network Sharing partnerships to flourish.
• Infrastructure sharing does not reduce retail competition – both operators can keep strong brands and their own retail strategy, pricing and distribution. It is a common misconception that Network Sharing reduces the ability to differentiate at the retail level.
• There has been proven sharing successes in other industries such as oil, electricity & gas. Sharing infrastructure and investment with retail competition isn’t that new or radical. It’s only new to us in Telecoms!

I would encourage MNOs to evaluate their options sooner, especially if they are not market leaders, and not wait until they are forced to do so. There is a first-mover advantage.

Of course, Azenby would be delighted to help you assess if Network Sharing is right for you and/or help you implement it the right way.

 

As a former CTO of a major MNO, I have been going to the MWC for many years.. since its early days at Cannes.. and when it used to be known as the GSM Congress, in fact. It was something one did. Once a year, like pilgrimage, one just went. Your PA booked your flights and hotels for the following year almost as soon as you returned from the congress.

You know what? I’ve always had mixed feelings about it. On the plane back home, on the Thursday afternoon, I used to think, once again, that I didn’t quite get what I wanted out of the trip.

On the one hand, it was and still is great just being there. Without doubt, ‘the’ event of the year for the Mobile industry. One place, one time, where all players come together. An annual celebration of the success of Mobile – let’s not be modest here; Mobile has changed the lives of people – as well as a commercial trade fair where businesses talk to one another under one roof, quickly and efficiently. Well done, GSMA!

On the other hand, one’s schedule was predetermined. Your meetings had been planned. Your Tuesday and Wednesday were taken up by formal meetings with companies and people who you saw quite a few times during the year – people you did or might do business with … people who you saw several times outside of the conference, anyway.

So, you only had the Thursday morning to do something different.. when people are beginning to pack up and get ready to go home! OK, now you can see why I sat on the plane Thursday afternoon having mixed feelings.

For me, it will be different this year. Having stopped full-time, executive working last year, I am going to Barcelona as Chairman of Azenby, a specialist wireless advisory firm based in London and a guest of GSMA.. who have asked me to chair, to moderate a discussion panel on Emerging Network Business Models.

The session is, provocatively, called “Whose Network Is It”. You will know that this was not by accident, if you happen to know me and what I’ve been up to during the last 4-5 years. If you want to find out who is on my discussion panel and what they think about the future of our industry, watch this space. One thing is for sure. This will not be a techy session but a ‘business discussion’. It’s about re-shaping/evolving our industry. It will be a real discussion amongst 4-5 people with ideas, strategies, plans, and indeed, initiatives actually in action.

All in all, it will not be one of my usual trips to Barcelona this year. Watch this space.