5G:

FROM
HYPE TO
REALITY
Outside-in Considerations
for Migration, Service
Prioritisation and Control
 5G: FROM HYPE
TO REALITY
Introduction
Most people enjoy a positive story about disruption.
By now, the benefits in relation to latency, speed,
coverage, capacity and density of devices that 5G
will provide have been well promoted. It is not just
another “G” or more speed. Throughout the build-
up to 5G and the discussions around its potential
however, the natural tendency for many industry
participants has perhaps been to jump a little too
far into the future. In that future, 5G is often seen
as a homogeneous, stand-alone network. It is
assumed to have a next generation 5G core as
well as smarter radio and the flexibility to instantly
create highly dedicated service “slices” that allow
for network resource sharing on an as-needed
basis. 5G is also often described as being in the
cloud as though it were automatic.
Fig. 1: 3GPP’s Vison. But Which and How to Prioritise?
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The temptation has perhaps also been to over-
focus on one disruptive service area or use case
such as industrial IoT or virtual reality or remote
surgery, without much consideration of drivers of
individual services, prioritisation of service rollout
or the combined value of adjacent, complimentary
services. 5G is not a “one size fits all”. The
migratory path and commercial considerations
in getting to that 5G future have risked being
overlooked amid all the excitement. In reality there
will be migratory steps and options for getting to
5G and various non-stand-alone (NSA) options are
now fully recognised by 3GPP standards. But the
trouble with standards is that they merely represent
a template without full consideration of a specific
operator’s particular environment or its ambitions
for differentiation.
A plethora of use cases and scenarios have been
described elsewhere (including by 3GPP and its
participants – see Fig. 1 and Fig 2). The potential for
as yet undiscovered uses has also been mentioned.
This is an acknowledgement that many of the
highly successful web services that we see today
(e.g. Netflix, Uber and Facebook) were driven by
4G but barely envisioned prior to its launch. This at
least moves the discussion more fully to 5G as an
ecosystem (Fig. 3) rather than an enabler of specific
use cases.
TM
Fig. 2: Everyone Loves a Slice. Key Questions Remain Around Which to Prioritise
and How to Enable Them for Many Operators (Source: Openet)
Different operators will have different use-case and
segment priorities. But the fundamental drivers of
those uses and what to prioritise are worth exploring
further as an aid to consideration of how to evolve
and optimise the ecosystem. More realistically, for
most operators, “migration” will be the word rather
than complete cut over to 5G. In most cases existing
(3G/4G) assets need to be optimised and evolved in
the context of 5G rather than replaced dramatically
by 5G.
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 The standardisation body, 3GPP, now appreciates
the need for migration or Non-Standalone (NSA) 5G
rather than a big bang to 5G everywhere. The sheer
investment reality of more densely populated (albeit
more efficient) 5G base station rollouts has also
required options for how to achieve that density
in greater isolation of core network upgrades.
Replacing or evolving the core network is complex
in itself and faces further decisions around sunk
costs, phasing and distribution towards the edge
(users) as viable use-cases become enabled.
Critical decisions about the extent of “standalone”
(SA) 5G versus more complex hybrid or NSA
models are still being made by many operators.
Realistically, different geographies, even within
the same jurisdiction, will require variations in
degrees of intensity of 5G rollout for many years
to come. Trading the down-side of shorter 5G
base-station ranges with efficiency benefits such
as “beamforming” and massive MIMO requires
intensity of planning never applied previously.
This is in the context of operators already striving
to configure their networks to cope with 3G/4G
traffic that is continuing to grow rapidly and will be
boosted naturally by 5G as well as less graceful
spikes from new, 5G-enabled use cases. Past
investments in 3G and 4G need to be optimised
and the realities of backward compatibility
considerations are still being teased out by
operators as service providers consider how to
maintain and enhance customer experience and
keep it at the heart of their businesses.
In this paper we explore key external drivers that
we believe operators will need to focus upon in
order to optimally evolve to 5G-driven service
differentiation for their particular markets. In turn it
should help to determine the necessary levels of
investment and areas of their networks to prioritise.

RADIO Flexible Air interface/New Modulation - Massive MIMO -

Interference Management/Full Duplex - Flexible Resource Utilisation -
Spectrum: Existing Bands, mmWave, Channel Modelling -
BACKHAUL Fibre, Wireless, Self Backhauling, Latency, Sync
NEW NETWORK / VIRTUALIZATION SON, NFV, C-RAN
NEW CODEC Voice / Video

Human- Human
Device - Device
Human - Device
- - - 5G - - -

Longer Battery Life

Powerful Processors
Higher Resolution Displays

Cloud, Plug and PIay

Small Cells, HetNet
Mobile Base Stations

New Performance Metrics,

Backward Compatibility,
Automated Management, eSON,
Analytics, User Experience

Fig. 3: 5G Ecosystem: “More than Just the G” (Source: Openet)

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5G: A RICHER TAPESTRY
Striking some balance between protecting and evolving past services and enablers versus complete
reinvention is one that most operators will need to make. Stepping back and exploring the business
drivers for service roll-out may be an alternative approach to the continuance of the “build-it-and-they-will-
come” template that many industry participants are determined to hold onto.

Extreme flexibility, scalability and open interfaces are characteristics that 5G purports to provide so why
would an operator be expected to make a dramatic cut-over to it in any event? That is, if it is so flexible it
must also be supportive of past (3G/4G) enablers. Accountants everywhere will want to ensure that returns
from existing (3G/4G) assets are optimised for as long as possible. The result will be a richer, albeit more
complex fabric of networks, aided by a more open, powerful and flexible 5G.

Migration Path: Use Case Preferences

The nature of 5G rollout intensity and focus
depends on the particular spectrum available, it’s
suitability for geographic coverage but also on the
operator’s broader appetite for service rollout. So
for example, for many operators in the first wave
of 5G, the focus is on Fixed-Wireless Access (FWA)
to improve coverage where rolling out fiber as an
alternative is expensive. It lends itself to providing
some revenue benefit and proof of the 5G business
case from NSA 5G prior to SA 5G. Enhanced
mobile broadband (eMBB) will be a further early
driver, where mobile coverage of sorts exists and
improvement to bandwidth is an early opportunity.
So several of the operators in the USA are
promoting mobile “pucks” or modems for mobile
broadband in the first wave of 5G.
Early advocates of slicing including Telefónica, BT,
and Deutsche Telekom are already securing their
share of this value. Opportunities abound, including
connectivity, more evolved “network as a service”
slicing and data/information brokering where the
operator has a valuable role to play in capture and
resale of data. Most analyst consensus would seem
to be that by 2021, operator focus will shift from
FWA and eMBB to industrial IoT and more towards
massive IoT and vertical services driven by “slices”
of network resources.

The early emphasis on FWA and eMBB requires

focus on radio configuration and radio upgrading
rather than impacts to the core. If however,
following FWA or eMBB upselling to enterprises
an operator sees early opportunity in, for example,
dedicated slices for manufacturing, logistics or
first-responders, then the relevant aspects of core
upgrade and distribution towards the edge come
more sharply into focus. ABI research (Nov 2018)
is predicting that network slicing will create $66
billion in value for enterprise verticals by 2026. The
main verticals that the technology will impact are
manufacturing, logistics, and transportation.

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 Criteria Determining Use Cases and Priorities
All of this points to a number of key criteria and determinants for Operators considering use-case prioritisation:
1 Available Spectrum
Early auctions of 5G-specific spectrum in some
countries such as in the USA have often been at
or close to what is generally considered millimetre
wave (mmWave). This is normally used to describe
30 to 300 GHz, though in the USA and elsewhere
mmWave has been used generally to also describe
24GHz or 28GHz. It implies less penetrative,
smaller cells and points to a success of line-of-sight
FWA, indoor use cases or short range outdoor
(e.g. 5G as an alternative to Wi-Fi) until alternative
(especially sub-6GHz) spectrum becomes available.
It may imply or constrain specific service launches
for some operators. Over time however more
low-band spectrum is likely to become available
and 3GPP is likely to more formally specify how
unlicensed spectrum will interwork with licensed
spectrum and this will be watched closely by Wi-Fi
communities everywhere.
2 Competitive Environment
Faster time to market is key for many operators.
In the context of a wider potential service portfolio
this requires an ever more discerning and
flexible approach. A balance of evolution as well
as service-innovation is possible and enables
service providers to build on the success of past
(4G) revenue drivers. For other, perhaps upstart
competitors that have lower historical capex
footprint than older incumbents, the opportunity
exists to be truly disruptive players with specialist,
5G-enabled offerings in the 5G space. The need to
be first with early 5G services (such as live gaming)
versus a preference to be a cautious follower or
how to mix both approaches needs to be carefully
considered and communicated. Any confusion will
be frustrating to users, may result in inconsistent
experiences & have parallels with some past sins.
3 Positioning 5G as a Synergistic
Compliment to Earlier Service
Commitments
Continued video growth is already a certainty,
regardless of 5G. Particular operators have
heightened commitments to it in the form of media
ownership or partnerships. So early 5G enablement
provides more potential to gain further competitive
advantage through video or video partnerships.
An example here is AT&T’s ownerships of DirectTV
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and Time Warner as well as its partnership with
Magic Leap, the augmented reality enabler. AT&T’s
DirectTV integration with Magic Leap has potential
to provide truly distinct and innovate entertainment
service experiences. Building on its content and
video strengths of the past, the evolution could be
a force for the future.
4 Device Availability
Depending on availability of already existing
broadband alternatives (e.g. cable or fibre), FWA
modems may have more or less resonance in a
particular market (“more Gs”) and set the scene for
more specialist 5G-enabled services. Similarly, if
industrial IoT and manufacturing devices happen
to take flight early on then they may not set the
consumer world on fire but will enable focus and
early returns to justify further 5G expansion.
Mass market 5G relevance to consumers however
(as opposed to enterprise) is likely to be driven by
the availability of 5G handsets (and new forms of
devices such as wearables including Magic Leap
goggles) as well as appropriate bundles. Dedicated
iOS users may need to hold off on 5G for some
time if 5G Apple devices are not available or
affordable until 2020 but no doubt Apple hardware
will still manifest as benchmarks for the rest of the
industry.
5 Broader Partnerships
Deutsche Telekom’s partnership with Niantic (the
maker of “Pokémon Go”) for future, edge-based
gaming perhaps points the way for operators to
open up their networks in ways that they were
reluctant to or did with limited success in 4G.
Proprietary interfaces are giving way to real focus
on openness and true participation in service value
chains and consumer lifestyles that operators
missed out on with 4G. Operators such as Turkcell
have dramatically increased customer engagement
(active users and revenue) through the launch of
its content and lifestyle brand: Lifecell. This points
to a bright future for other operator brands that
leverage 5G as a means for greater access to
consumers and true partnership. With 5G, Service-
Based Architecture (SBA) implies operators will be
able to more proactively mix and match services
from different vendors.
All of this points further to a service-driven, outside-in approach towards 5G upgrade that uses the above
criteria as weightings. These criteria can then be overlayed with the likelihood of user uptake for a given
market (Fig. 4). Of course, as with 4G, some such uptake likelihoods will be known with certainty while
others will not. Some services will depend almost fully on 3rd party partnership enablement and control
(or exposure) of network API’s. Other services can be planned for to a certain extent as an operator cedes
service ownership to “over-the-top” (OTT) service brand owners while the operator focusses mainly on
their connectivity.

Current 3G/4G Network Resources Spectrum Competitive Environment

Use Case Preferences: Key Drivers

KEY DRIVER KEY DRIVER KEY DRIVER

Spectrum 5G Service Earlier/Adjacent

Competition Service Synergies

KEY DRIVER KEY DRIVER KEY DRIVER

Device Broader Partnership Specific Market

Availability Capability Relevance & Uptake

Fig. 4: Key Determinants of 5G Service Prioritisation & Network Enablement

5G will not be a “one-size fits all” in terms of network upgrade prioritisation. Beyond mere functions,
truly flexible and competitive microservice deployments and updates will apply DevOps principles and
continuous integration, continuous delivery (CI/CD) that are encouraged by 5G definitions. Open APIs
and vendor agnosticism enable rapid integration of partners and true experimentation with new business
models that were mostly dreamt about but seldom realised in 3G/4G environments. With 5G, it’s not
just what is done and which services are prioritised, it is how it is done that will provide meaningful,
competitive, webscale differentiation.

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 The potential service portfolio driven by 5G is huge (Fig. 5). The extent to which traffic uncertainty
and service flexibility requirements can be planned for upfront and managed centrally (albeit over a
more distributed network) with network flexibility and control enablers may be a key source of true
differentiation for many service providers and what truly distinguishes 5G from 4G.

The plethora of additional services in a more complex hybrid environment implies a need for more
nuanced and flexible control of more services on a network-wide and portfolio basis, whether or not those
are an operator’s own-branded services or whether they rely also on 3rd parties. Cloud-based by definition,
the usability, elasticity, openness and continuous upgrade of such controls are likely to be at the heart of
value-generation for many operators.

Fig. 5, Bandwidth & Latency Drivers of Potential 5G Use Cases (Source: GSMA)

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Leveraging 4G to Truly
Differentiate with 5G

4G provided a lot of lessons and continues to do so with data traffic growing by as much as 50%
per annum in many so called “mature” 4G markets. A key feature of 5G core once enabled is
the decoupling of radio types from the core, in addition to greater ability to manage whatever
radio services come along, including unlicensed radio. The 4G/5G tapestry will still be able
to avail of complimentary tools that pre-existed 5G but are also evolving and are now more
powerful and relevant than ever. For a start, as 5G absorbs some existing traffic, 4G radio itself
can become more effective. (Operators in the USA are already showing theoretical speeds of
over 400Mbit/s on evolved versions of 4G/LTE). Indeed optimised 4G radio networks could be
the key to answering subscribers’ insatiable thirst for more video content. With video expected
to account for over 75% of all mobile traffic by 2020 and limited 5G coverage for some time, the
strain on networks will intensify if operators wait for 5G to come to the rescue.

For some service providers relief will come through
enhanced use of real-time data to determine
the user’s status and usage characters within a
more flexible hybrid network. The GSMA predicts
that only 14% of global mobile data will be on 5G
in 2025 (GSMA 2018 Mobile Economy Report).
Of course it will be significantly higher in some
markets but the implication is that more traffic
will be on 4G for quite some time. Meantime
approximately 70% of all traffic is still over Wi-Fi.
Wi-Fi will be around for a long time also and will
interwork with 3G, 4G and 5G. Formally, 3GPP
is already recognising the need for interworking
with unlicensed spectrum, including Wi-Fi. Wi-Fi
development is of course already reacting to 5G
and becoming ever-more powerful. Wi-Fi version 6
will have theoretical speeds of over 10Gbit/s.
But leveraging any resurgence of Wi-Fi as a
greater compliment to 4G and evolving 5G can
more fully occur if network congestion tools can
be deployed by an operator. Adding a layer of
intelligent decision making at the core ensures
that customers are always connected to the most
appropriate access network – be it Wi-Fi or cellular.
These decisions can be based on device type,
location, subscription type, traffic type, available
access networks and a host of other information.
The decision to move traffic from one network
to another is not just about signal strength – that
is just one of the criteria. The ability to deliver
zero touch, seamless connection delivers the
best customer experience based on a particular
customer profile.
By using congestion tools, locations or hotspots
can be prioritised or blacklisted in real-time
depending on how they are performing, and
individual users can be prioritised depending on
their bundle. This can continue to make up for
holes in cellular coverage, such as in-building
coverage and in remote locations, as well as
provide an effective off-load solution for capacity
management to maintain quality of experience (see
Fig. 6). Such tools are already being used in the
market by operators such as Sprint who have been
leaders in fine-tuning Radio Congestion Awareness
Function (RCAF) implementations.

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 Fig. 6: Traffic Type/Heat Map (Source: Openet)

Ultimately, after the initial hype of 5G launch, many end-users may not care too much which
network they use – as long as they can use their device in a way that meets their needs or
provides enjoyment. For the foreseeable future, previous generations of networks will need to
co-exist with the newer ones. With 5G likely to be deployed in a complimentary way to 4G and
3G, it is only by implementing the correct tools that operators will find their particular “secret
sauce” for an enhanced digital experience for subscribers during this transition. Failure to do
so could see subscriber experience significantly affected, leaving subscribers disenchanted
and even more likely to churn despite the existence of 5G. After all, if operators are to make a
return on the massive capital investment that is 5G, it all starts with ensuring subscribers are
happy and willing to stick around for as long as possible.

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Beyond Radio: Managing
and Monetising 5G
Many of the use case examples described here are either not deployable over 4G or are optimised by
the capabilities of 5G, making them valuable showcases for the potential of 5G. However, rollout out
these early 5G services is only one step in making them successful enough to justify the investment in
the technology. The role of network control and monetisation becomes even more essential for service
differentiation in a rapidly evolving 5G use case environment.
It seems certain that the “competitive environment” described above will have an intensified influence on
service providers. Optimal differentiation capability will mean that service providers enable 5G beyond
radio and what may become commoditised 5G FWA / eMBB. A new, cloud-based core won’t “just” enable
5G radio but will be key to realisation of the benefits of a cloud-native architecture with elastic scalability,
vendor agnosticism, incorporation of 3rd party and open source software - all the things that didn’t work
smoothly with 4G. What 5G ignites is a more evolving and open ecosystem of 3rd parties and partner
ecosystem players that can interact with 5G networks via RESTful (non-telco specific) APIs and web
services.

In order to fully capitalise on 5G, operators must be able to monitor, manage and make money from 5G
services in what is now a more complex service environment. Service examples and features depending
on this smarter core include:

Industrial virtual and augmented reality (VR/AR)
requiring the ability to assign the session to a low-
latency network slice and the ability to evaluate the
impact of the data traffic on that network slice over
the course of the session, in real-time, as well as
the ability to assign a specific quality of service to
assure the VR/AR experience.
VR/AR applications supporting mission-critical
services such as fire and rescue, require an edge-
based policy solution that is capable of supporting
extremely high levels of network performance.
Ability to weigh multiple inputs, including subscriber
entitlements, content requirements, network
conditions and device characteristics, in making a
policy decision automatically for services such as
interactive gaming and ultra-HD video.
Industrial IoT use cases requiring analytics
capabilities to identify anomalies in sensor traffic
behaviour; the ability to support real-time
automation via closed loop policies and the
capability to charge based on variables such as data
consumption, guaranteed QoS or derived KPIs.
An open, richer, multifaceted set of business
models that necessitate settlement among the
operator and multiple other parties that require
a flexible revenue management system able to
charge on a real-time basis based on alternative
and flexible characteristics such as network slice
requirements or quality of service. Services might
include the rapid launch of low-latency multi-player
gaming competitions involving 3rd party brands
and only possible with 5G.

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 Those requirements translate into a set of control and monetisation systems that are specific to 5G
requirements and are far more flexible and agile than legacy solutions, including the following especially
critical capabilities (Fig. 6):

Real-time dynamic policy control beyond a standardised core network function that can be pushed closer
to the edge to rapidly support a plethora of rapidly evolving services, including ultra-low latency use cases.
Policy control which had become somewhat jaded in the eyes of some operators becomes central to the
story of 5G differentiation and control across what could otherwise become an overwhelming range of
service options.

Dynamic, non-siloed charging that can go way beyond charging for consumption, e.g. variable charging
for latency, availability, bandwidth, etc., as well as support alternate payment options such as PayPal and
Venmo and hybrid models in addition to traditional prepaid/postpaid.

The ability to support new business models by seamlessly integrating third parties into the operator
ecosystem via secure exposure of network services and capabilities, which enables new B2C and enterprise
pricing models, partner settlement, as well as enabling notifications, alerts, alarms and informative analytics
that will drive 5G business plans.

Advanced analytics and machine learning to drive better contextual inputs for policy and charging decisions
ranging from support for variable quality of service to network slice optimisation to early identification of
fraud or malware introduced by IoT devices.

Partner Ecosystem &

5G Policy
New Business Models

5G SUCCESS

Data & Analytics 5G Charging

Fig. 6: Key Capabilities at the Heart of 5G Success

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Conclusion
According to a Juniper study (Nov 2018), annual operator billed revenues from 5G connections will hit
$300bn by 2025, a major increase from $894m forecasted for 5G in 2019. On that basis, 5G service
revenues will make up 38pc of total operator billed revenues by 2025, despite the anticipated 5G
connections only accounting for 14pc of global cellular connections in the same year. 5G as a percentage
of connections will vary widely by region but it is clear that there will be winners and losers in terms
of who succeeds during such massive predicted revenue growth from a concentrated number of
connections.

Viewing 5G as a simple evolution in speed or a set of standard functions would be a mistake that
could cost mobile operators dearly and hinder their ability to play in the digital services realm going
forward. 5G is not a “one size fits all”. As a result, competitive operators must deploy their 5G networks
strategically, with the best methods available, for their specific context. It must be with an eye to long-term
sustainability, competitiveness and value, for their particular market. It should mean a planned, service-
led migration with earlier 3G and 4G assets optimally interwoven with 5G and smartly upgraded where
necessary.

To cater to the digital mind shift associated with 5G, which will move users further from an ownership
mentality to favouring access and seamless, on-demand, as well as far richer experiences, a change is
needed. Simplifying and coordinating the way in which a wider set of offerings (the wider ecosystem,
including 3rd party content and partners) is enabled, controlled and monetised will be essential. It will
need to provide the desired level of real-time access, automation and service authorisation, as well as
flexible charging options for a plethora of new revenue sources and customer types. Ever smarter use of
data in this more complex and evolving tapestry will also be critical.

The most competitive migrations to 5G will need to be led from the outside-in and demand extreme
flexibility from new deployment and launch methods via a significantly smarter core, as well as new
partnerships that 5G supports by definition. To do anything else will be to under-use available 5G
resources. As well as amazing opportunities, 5G presents challenges for sure but just because something
is challenging doesn’t mean it has to be difficult.

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 About Openet
Openet provides Digital BSS to enable service providers to create new revenues from
digital services, improve customer engagement and be ready for the opportunities from
5G. Our solutions enable service providers to be more agile, innovative and enjoy a faster
time to value.
From monetising content and data services over 4G to enabling innovative enterprise IoT
offers over 5G, Openet’s Digital BSS offers a fast and agile alternative to the large legacy
companies whose track record of over-charging and under delivering has resulted in high
failure rates of large scale transformation projects.
Since its foundation in 1999, Openet has been at the forefront of telecoms software
development and innovation. Our success is personified by the many long-term
relationships it has fostered with the largest, most progressive, and demanding operators
across the globe.

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