5G is not only a technological breakthrough, but unlike other innovations, it is fundamentally a business case problem for communications service providers (CSPs) as they undertake the huge investments required to build out their networks. Indeed, these 5G networks cannot be sustained by a cost-reduction roadmap alone, but require an effective monetization strategy to be economically viable.
5G Monetization: Use Cases
In 2017, Capgemini Engineering began contributing to early 5G trials with the aim of demonstrating 5G’s huge potential to transform a wide range of industries with new use cases and services.
It is worth noting that Capgemini has been involved in various 5G initiatives, including 5G trials (as Altran) in Italy, Portugal and Spain, working on 40+ use cases across major industry sectors, demonstrating the value of 5G across Europe and gaining relevant experience and skills in new technologies (AR/VR, AI video analytics, etc.) and E2E delivery/deployment in different environments.
Recently, 5G momentum has been seen in the following areas:
Private Network: According to an industry survey, 76% of manufacturing companies in Germany, Japan, the UK and the US plan to deploy private 5G networks by 2024.
Since 2020, Capgemini has been supporting enterprises and CSPs in the engineering, E2E integration and testing of Mobile Private Network (MPN) solutions, including designing and developing use cases in dedicated labs, establishing partnerships with HW vendors and hyperscalers to accelerate industrial digital transformation, and supporting advanced trials with major industrial players focused on industrial automation and security.
5G in Public Safety: This movement is accelerating rapidly, with more and more authorities planning and initiating large-scale transformation activities.
Capgemini has been selected by the French Ministry of the Interior as an integrator for the RRF Radio Network of the Future, a national, secure, high-speed (4G and 5G) and high-priority mobile communications network, including the development of new use cases to support new Mission Critical Services (MCX) providing high-priority communications in emergency situations, incubated and validated in the Capgemini Paris 5G Lab.
moreover, Satellite and Non-Terrestrial Networks (NTN) 5G NTN technology is also gaining momentum. Commercially available devices and smartphones already have satellite capabilities built in, supporting a wide variety of use cases (UC). 5G NTN technology is used in conjunction with CSPs. For example, CSPs use terrestrial networks, which may not fully cover a geographic area, especially in places with no or very few inhabitants. In such cases, NTN can be a complementary way to provide connectivity. Additionally, CSPs can use NTN to provide services in the event of an outage of the regular network.
In this context, Capgemini has leveraged its in-house licensable software frameworks to become the reference engineering partner for a US Tier 1 satellite operator, contributing to the implementation of 4G Core and RAN on new specific hardware, and establishing the roadmap towards 5G in the coming years.
Finally, A vehicle for everything ((V2X) This technology has become increasingly popular in recent times. Several car manufacturers are currently working on implementing this technology, which is part of 3GPP Release 17. Capgemini is leading, supporting and contributing to specific programs, ecosystems and pilots. These include:
5G Open Road Programme – a French initiative aimed at creating 5G pilot zones to test the technical and commercial feasibility of innovative connected and automated mobility services. In this programme, Capgemini is leading the integration of a complex ecosystem, supporting 5G platform implementation, use case delivery and off-board awareness.
5GAA – Smart Roadside Infrastructure Trial – This targets connected car and smart city services in multi-Mobile Network Operator (MNO) scenarios. The federation of edge platforms, leveraging the Capgemini IEAP solution framework, enables operators to provide a seamless edge experience to users in multi-access edge computing (MEC) roaming scenarios. The solution is being trialed with five MNOs across the EU and US.
5G Monetization: A New Asset
Typically, in use-case development, 70-80% of software components implement self-consistent and non-use-case specific functions (e.g. AR rendering, AI object recognition, video analytics, etc.). As a result, these generic functions are generalized into API-based microservices that can be used for various 5G UC. This makes use-case development more flexible and efficient, reduces the need for additional software components, and saves costs and overhead.
Furthermore, the ability to expose Application Microservices APIs Selling licenses to these APIs to third-party application providers and developers will generate new revenue streams. To this end, Capgemini Engineering has developed its own in-house portfolio of microservices assets and platforms for computer vision, augmented reality and native 5G video streaming applications.
Complementary Application APIAccording to STL Partners: Top 11 Network API Markets Exceed $22 billion worldwide by 2028 According to the GSMA, 21 major carriers are working on the Open Gateway, a framework of common network APIs designed to give developers universal access to carrier networks.
The Linux Foundation’s CAMARA project is a major effort in this space. A collaborative effort between operators, vendors and hyperscalers, CAMARA aims to develop APIs that can expose network capabilities to application developers. As the Linux Foundation explains, CAMARA will “empower the customer and developer ecosystem by developing an open, globally accessible API solution that will allow customers to access operator capabilities no matter what network they are connected to, enabling applications to run consistently across operator networks and different countries.”
Capgemini will contribute to CAMARA in the implementation and testing of APIs in MNO networks, feasibility studies for new APIs, and provide active support for specifications/standardization.
Once standardized within CAMARA, the same Net APIs will be available through Capgemini’s Intelligent Edge Application Platform (IEAP), a Mobile Edge Computing (MEC) platform that manages edge applications at distributed edge sites or data centers connected to 4G/5G mobile networks. Net APIs already available in IEAP include device location, device status, and quality on demand (QoD). Other APIs in the CAMARA roadmap will also be available through IEAP soon, including traffic impact, edge site selection and routing, and more.
5G Cost Reduction: Decentralization and Softwarization
In addition to working on 5G monetization, Capgemini Engineering is actively helping CSPs reduce infrastructure and operational costs by leveraging the “distributed network” paradigm shift, where network hardware and software are decoupled, allowing organizations greater flexibility and customizability using components from different vendors.
In this context, Capgemini Engineering Virtual Network Functions (VNFs) Cloud Native Network Functions (CNF) transitionIt employs the Capgemini Advanced Network Automation (ANA) framework, a fully open-source, microservices-based approach that streamlines the deployment of virtualized and containerized multi-vendor network functions and supports a wide range of use cases, from network service delivery to infrastructure deployment.
ANA is a proven leading accelerator for telcos in the cloudification and automation space, easing network deployment and operations, and bringing automation and agile continuous integration, continuous deployment and continuous testing (CI/CD/CT) pipelines to telco cloud ecosystems.
Capgemini Engineering is also involved in other aspects of the 5G ecosystem.
for example, Open RAN, We have contributed to:
- The TIP 5G NR Program Group develops reference use cases for 5G NR (New Radio) and next-generation Node B (gNB) software framework development.
- The first demonstration of 5G Multi-User MIMO (MU-MIMO) running on a RAN Intelligent Controller (RIC) at a multi-vendor Open RAN test site, delivering significantly higher capacity at a single cell site.
- We deployed the first Open RAN network, supported a Tier 1 operator in Japan, and were a key partner to a T1 carrier, providing testing and associated lab management services for the first deployments in Europe, ensuring the functionality of the Open RAN multi-vendor ecosystem.
moreover, 5G Slicing It opens the door to additional revenue opportunities and business models based on the quality of service (QoS) offered. At this early stage, some operators are running trials and proofs of concept, such as the one Capgemini conducted with a T1 operator, to determine whether all the required technologies are mature enough to support enterprise-grade slicing.
Finally, Sustainability It is the watchword of all players with an ambitious net-zero roadmap. According to the GSMA, energy costs today account for 20-40% of network operational costs, and the expected increase in data traffic over 5G will mean unsustainable amounts of energy consumption. Capgemini Engineering is testing a solution based on NetAnticipate, an industry-leading network AI framework, which has won two awards in 2023: Most Innovative Telecom Software at IMC 2023, and From ideation to engineering leadership Additionally, Project Bose leveraged Intel’s observability framework to achieve an astounding 40% energy savings.
Conclusion
5G and Edge adoption in the industrial market is expected to accelerate over the next few years while following a sustainable approach. Currently, the following key segments are gaining momentum: Public Safety and Mission-Critical Services To assist emergency services; and Satellites and Space/NTN Ccommunication It complements existing ground networks and critical national infrastructure.
Additionally, new assets such as: Application and Network APIs These are fundamental enablers of network-enabled/network-enabled 5G-native applications, but are also monetizable assets in their own right.
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