Member Insights
5G creates demand for new ecosystems
By partnering with others in the value chain, communication service providers (CSPs) can leverage their 5G network to create new solutions for both consumer and enterprise segments. But to attract and convince the very best partners, CSPs must be able to differentiate their network capabilities from that of their competition.
5G creates demand for new ecosystems
5G presents an exciting opportunity to enable service innovation and generate revenue streams through new B2B2X business models. By partnering with others in the value chain, communication service providers (CSPs) can leverage their 5G network to create new solutions for both consumer and enterprise segments. But to attract and convince the very best partners, CSPs must be able to differentiate their network capabilities from that of their competition. Fortunately, 5G creates an opportunity for doing just that. 5G leverages a service-based architecture (SBA) in which network functions communicate over open interfaces. Each network function provides a distinct set of services and exposes them to other network functions on the SBA. The result is a modular and highly adaptable core network unlike anything from the past. Additionally, the use of an SBA means that CSPs are no longer constrained to procuring their core network from one single vendor. Instead, they can now adopt a best-in-class approach for their core network. Beyond simply choice, 5G’s SBA now allows CSPs to prioritize specific network functions as a means of differentiating capabilities. Ultimately, it means CSPs can create a unique 5G network strategy and enable it through a selection of best-in-class solutions. The advantages of this approach are many but adopting best-in-class in practice comes with significant hurdles.
Need for new best practices and standards ecosystems For example, network functions from one vendor should easily integrate with other vendors’ network functions and, in some cases, with other IT systems. While most vendors will claim open APIs for those purposes, the challenge lies in validating if, in fact, they will easily integrate. Marketing may also contribute to confusion. For example, many vendors today will claim that their solutions are cloud native, as if they were not evolving. The reality is that these best practices are continuously developing, especially as they apply to networking. With multiple communities defining cloud native best practices, it can be difficult to know which to follow or prioritize. A final example relates to interoperability between network functions and host infrastructure. As 5G network functions and host infrastructures transition to leverage both cloud and cloud native design, CSPs will want to understand which solutions work with their planned infrastructure. More critically, they need to know which solutions can excel versus simply being compatible. These are just several challenges in trying to adopt a best-in-class approach.
So how can CSPs gain the confidence necessary to leverage best-in-class without incurring massive costs in time and money to validate potential solutions? The answer lies in standards, best practices and conformance programs. More specifically, today there is a need for a wider and more coordinated ecosystem of best practices communities and standardization bodies. New technologies like 5G, new design paradigms like cloud native, and open and digital-first strategies are all examples of changes in our industry that are driving the need for a more robust and coordinated ecosystem. Collectively this new ecosystem will enable CSPs and vendors to engage, advance and validate an ever-widening and complex set of standards and best practices critical to 5G’s success. While pieces of this ecosystem exist today, the biggest challenge is the time and cost necessary to navigate each organization individually. In addition, without coordination, the risk for duplication or overlap of efforts increases for all involved. Without change, vendors and CSPs must continue to engage across a maze of organizations to ensure new solutions are fit for purpose and leverage critical best practices. The consequence of this approach is not only additional costs, but also loss of synergies, slower advancement of new technologies and likely fewer vendors who can offer point solutions. Ultimately, it will stifle the efforts of CSPs looking to differentiate their 5G networks via a best-in-class approach.
A coordination opportunity There is a compelling opportunity for CSPs to leverage a best-in-class strategy for 5G. As with prior generations of mobile technology, standards and best practices will continue to play a critical role. Yet because of the wider spectrum and complexity of new technology being utilized, the efforts to include all relevant standards and best practices may become prohibitive. To avoid these costs, vendors and CSPs alike may simply be unwilling (or unable) to enable best-in-class 5G. Just as 5G will spur a new ecosystem of partnerships to coordinate around B2B2X business models, so too can the organizations that provide critical standards and best practices that underpin 5G. Increasing coordination in this new ecosystem can result in fewer, but functionally richer, conformance programs used to validate the standards and best practices that are critical to making 5G successful. As the saying goes, sometimes less is more.