According to a report by Counterpoint Research, the number of mobile operators transitioning to a 5G standalone (SA) core decreased to 12 in 2023. Although numerous mobile network operators (MNOs) have been running 5G SA core pilots, they have yet to move forward with the transition because they believe the existing architecture is sufficient to meet the current network demand. Another reason for the staggered deployment is the prevailing macroeconomic headwinds and lack of monetisation opportunities with 5G.
As per the report, the transition should increase following the introduction of 5G Advanced starting in 2025, which promises a plethora of new features that will help improve device and network capabilities, lower OPEX costs and introduce new use cases. However, operators need to urgently prioritise the deployment of 5G SA cores to maximise the potential offered by 5G Advanced.
Further, the report states that the delay in turning on 5G SA implies that a bunch of rollouts may be seen in a shorter time starting H2 2024 and running into 2025, rather than steady rollouts spread out across the next three to four years. The report notes that the gradual penetration of 5G SA into Tier-2 operators and nations with smaller geographic areas appears to have begun as operators seek to improve user experience.
According to Counterpoint Research, about 30 nations have at least one operator running a 5G SA network commercially. Counterpoint Research forecasts that transitions in H1 2024 will remain sluggish before gaining momentum in H2 2024, which will continue into 2025. The Asia-Pacific region had the highest number of deployments, followed by Europe. North America, the Middle East and Africa, and Latin America (LATAM) trailing behind.
As per the report, 55 operators have commercially implemented 5G SA, with many more in the testing and trial stages. A mix of countries are adopting 5G SA, with some Tier-2 carriers in LATAM launching 5G SA services. The rate of deployment was slightly faster in H2 2023, with some important Tier-1 operators in developed nations shifting to 5G SA, although the list of MNOs currently in the trial phase is still quite extensive.
As for vendors, the report asserts that Ericsson’s role as a leader in 5G SA is expanding, and the Swedish company has the largest market share among all cloud-native core providers. Nokia follows Ericsson in terms of the number of deployments of its 5G core. Both have a considerable number of vendor deals with operators that have not yet been commercialised. South Korea’s Samsung and Japan’s NEC are primarily focused on their respective domestic markets, but they are expanding their reach to Tier-2 operators as the focus shifts to virtualised open radio access network (vRAN) and open RAN solutions while emerging vendors Parallel Wireless and Mavenir are collaborating with operators in Europe, the Middle East, and Africa.
From the spectrum viewpoint, most operators are installing 5G at mid-band frequencies (n78), which give higher speeds and better coverage. Some operators have also started offering commercial services in the mmWave wave n258 bands. Fixed wireless access (FWA) and other enhanced mobile broadband (eMBB) are currently the most common use cases, although edge services and network slicing are also gaining traction.
The report states that operators are looking for ways to monetise 5G services, as they are struggling to make a return on investment (ROI) from their investments in 5G. Globally, operators are trying to extract better returns from consumer networks before taking their 5G services deeper into enterprises. Although FWA is a promising application for 5G SA monetisation, there are many other use cases that operators can look into to increase their ROI, including network slicing, live broadcasting, extended reality applications, and private networks.
