Industry needs a more decentralised model to allow business strategy to set the tech agenda
ABI Research’s new publication predicts global 5G subscriptions will rise from 934 million in 2022 to 3.1 billion in 2027, a compound annual growth rate (CAGR) of 27%. In the same period, 5G traffic will than double, from 293 exabytes (EB) in 2022 to 2,515 EB in 2027, at a CAGR of 54%.
ABI Research says it expects the market for 5G core (5GC) to widen and include traditional mobile broadband use cases plus scope for operators to expand cellular capabilities in new domains. Don Alusha, Senior Analyst for 5GC and Edge Networks at ABI Research reckons 5GC offers telcos “a fluid and dynamic landscape” where changing requirements move the industry towards edge deployments and topologies.
Decentralising is key
Alusha also thinks the industry shift from a centralised to a decentralised business will become “a significant trend,” adding, “In this emerging landscape, there will be enterprise-specific, value-based and niche engagements where the business strategy sets the technology agenda.
“So, it is rational to conclude that a ‘bottom-up’ approach may be required to deliver unique value and expand business scope,” he stated. “But the power of a bottom-up model is not enough. To monetise a 5G cloud packet core at scale, some of the existing top-down intelligence is needed too.”
Both ways round
He explains, “Learning how to operate in this hybrid top-down and the emerging bottom-up, horizontally stratified ecosystem is a journey for NTT Docomo, Rakuten Mobile, Singtel, Softbank, and Telstra, among other CSPs.
“In the impending cellular market, an effective and efficient operating model must contain both control and lack of control, both centralisation and decentralisation and a hybrid of bottom-up plus some of the ‘standard’ top-down intelligence. The idea is that CSPs’ operating model should flexibly fit and change in line with new growing market requirements, or new growth forays may hit a roadblock.”