In this episode of The 5G Factor, our series that focuses on all things 5G, the IoT, and the ecosystem as a whole, I’m joined by my colleague and fellow analyst, Todd R Weiss, for a look at the top 5G developments and what’s going on that caught our eye.
Our conversation focused on:
Nokia Debuts Network as Code Platform. Nokia introduced its Network as Code platform and developer portal aimed at enabling application developers and communication services providers (CSPs) to accelerate the work of producing software applications for new enterprise, industrial, and consumer use cases, as well as monetizing 5G/4G network assets beyond basic connectivity. Commercial availability starts in December 2023. We assess why the Nokia Network as Code launch aligns with the ushering in of software-based 5G networks, a tectonic shift from the hardware-oriented designs of pre-5G networks, and how Nokia is targeting broader adoption and integration of APIs and other software tools that take advantage of network programmability by providing access to immersed functionality and data within networks.
T-Mobile SASE Launch Sharpens T-Mobile for Business Proposition. T-Mobile launched T-Mobile SASE, a SIM-based SASE solution that also offers customers a network slice dedicated to SASE traffic. T-Mobile’s innovative offering consists of components designed to ease how organizations protect vital corporate data and network resources from nearly anywhere. We examine how T-Mobile’s hardware-based component approach enables devices that are connected to T-Mobile’s network to be automatically authorized through the SIM card and why the offering can streamline workload demands and strengthen security policy control for IT and security teams by decreasing administrative burdens. Plus, the mobile experience can be improved for today’s increasingly distributed workforce including frontline and field services workers as well as employees working from remote locations.
Ericsson Adopts Open Fronthaul Stance, Altering Open RAN Landscape. Ericsson will introduce support for open fronthaul across its Cloud RAN and radio portfolios starting in 2024. More than one million Ericsson radios in the field and are hardware-prepared for open fronthaul. Ericsson seeks to drive the industry in all three areas of Open RAN architectures – cloudification, open management with automation, and open fronthaul. To demonstrate its commitment, Ericsson and Telefónica signed a MoU for Cloud RAN evolution based on Open RAN architecture. We examine why we see the biggest shift in future mobile networks is towards cloud-based open networks leveraging 5G networks through exposure of new functionalities and APIs. We expect that Ericsson and Telefonica’s collaboration can bring out the benefits of cloud-native networks built on O-RAN standardized interfaces with industry scale, high performance, and cost-efficient Cloud RAN. By leveraging existing 5G infrastructure as a foundation, the collaboration aims to accelerate RAN evolution as the duo agree to jointly test and evolve Cloud RAN technology with trial deployments in Europe.
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Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
Transcript:
Ron Westfall: Hello and welcome everyone to The 5G Factor. I’m Ron Westfall, Research Director here at The Futurum Group, and I’m joined here today by my distinguished colleague Todd R. Weiss, our team analyst focused on key areas such as communications networks. And today I’m co-hosting our show from Mobile World Congress ’23 Las Vegas, where major developments have definitely caught our eye. And so Todd, welcome back to the 5G Factor and many thanks for joining the show today. Now, how have you been bearing up between our episodes?
Todd R. Weiss: Thanks for having me join again, Ron. All things are good here. We’re getting ready for the Phillies playoff run and looking forward to the playoffs starting on Tuesday. We’re still waiting to see who we’re going to play and it’s very exciting around here in Pennsylvania.
Ron Westfall: Right on. That makes a lot of sense and sounds good. And in the meantime, Todd, here at the show, I think we definitely saw some major announcements that impact the 5G ecosystem. For instance, Nokia introduced its network as code platform and developer platform that’s aimed at enabling developers and the operators to accelerate the work of producing software applications for new enterprise, industrial and consumer use cases, as well as monetizing 5G, 4G network assets beyond basic connectivity. Now, the commercial availability of this network as code platform starts in December 2023. What about your perspective, Todd? What are you seeing out of this?
Todd R. Weiss: Yeah, I think this is a great idea, Ron, and it’s one I’m sure we’ll really help developers and CSPs with this incredibly laborious work. Simplify, simplify, simplify. That’s really the key.
Ron Westfall: Well, right on. Yeah, keep it simple. I think that’s something that’s well understood principle. And now what Nokia is doing is that both the network is code platform and developer portal are aimed at accelerating network programmability and naturally monetization by again providing simplified network capabilities to the developers as software code that can be integrated into the applications. Now, I see the move reinforcing Nokia strategy, powering new business models that can unlock more innovation, including sustainability, collaboration and productivity improvements.
Also, I see the launch as fully aligning with the ushering in of software-based 5G networks, which is a tectonic ship hardware oriented designs of pre-5G networks. And as a result, what Nokia is targeting is broader adoption integration of APIs and other software tools that take advantage of network programmability by providing that access to immersed functionality and data within the networks themselves. Now this can play, I believe, an integral role in enabling application developers to swiftly build new capabilities and use cases that accord with the customer priorities. So Todd, what impressed you most about the Nokia network as code debut?
Todd R. Weiss: Well, I really like it. Specifically, I like that the 5G capabilities and use cases include areas such as network slicing, edge cloud and quality on demand. Again, making these things easier, making these things work better for the CSPs and for developers. Plus, this whole thing has advanced capabilities that Nokia says will not require the uses of 5G networks for device and subscriber status and billing.
Now, to me that’s big because 5G still is not everywhere yet. So they’re taking into account that this is something that they’re working on. In addition, I expect other advanced capabilities to come, such as policy control, home network prioritization, traffic prediction and SIM swap. As well as 5G exclusive capabilities like traffic breakout and high accuracy location to gain more traction. Those will happen over time.
Across the mobile ecosystem, I see established and emerging use cases within existing and emerging API demand categories. Those include industry 4.0, transport logistics, mobility, security and authentication, immersive customer experience, healthcare and smart buildings. Such use cases, Ron, are fueling the shift, I think, towards use case-based service change that use data processing across edge clouds. This is something that’s happening, being enabled nowadays.
Other interesting news here is that Nokia and Dish Wireless have agreed to a memorandum of understanding to collaborate on an ecosystem project that can enable enterprises to develop applications using advanced mobile and 5G network capabilities. This is pretty cool.
From my view, this partnership can help encourage broader enterprise use and developer support of 5G network programmability features by providing access to software development tools for advanced network traffic controls, quality of service management and details such as location and device status. Again, Ron, this is all really good stuff. It’s the maturization of this work. I think it’s happening little by little.
Ron Westfall: Yeah, that’s I think right on. It’s incremental progress. And again to the Dish memorandum of understanding. I think you have a good point, Todd. The Dish MOU accords with Nokia’s extensive network as co-development work with the CSP community. And right now it includes five CSPs that have already onboarded or the process of onboarding, along with eight CSPs who are expected to join by the end of this year. And includes up to 30 by the end of 2024.
Now Nokia’s offering is based on a revenue share model between the CSPs as well as the developers and of course Nokia itself. Now, I think it’s important to note that Nokia network as code platform has been developed in accord with the Linux Foundation CAMARA project, and the GSMA Open Gateway Initiative. So taken together, I think Nokia is demonstrating the broad ecosystem support that is key to making network programmability, API-driven innovation that is going to be integral to CSP 5G monetization progress.
And so that’s different. Like okay, we’ve been here before with similar type of initiatives, but I think what Nokia is demonstrating that this time it’s different. We have the carriers locked in with support for the network as code platform itself, but it’s also underpinned by the standards initiatives. And I think that’s going to encourage that broad ecosystem support, particularly from the developer community.
So yes, this is something that is important. And what I think is also going to be of note, is that there are other announcements that have occurred at the show here that I think can have tremendous impact. And to start off, Todd, I think we saw that T-Mobile debut, T-Mobile SASE, which is a SIM-based secure access service edge solution that also offers customers a network slice dedicated to SASE traffic. So this is something that’s different. Now, the T-Mobile’s offering consists of components designed to ease how organizations protect vital corporate data and networks resources from nearly anywhere.
And so this is going to be the difference maker. Now, what we’ve seen today is that organizations have been relying on software-based options such as SASE, the initial version, but to better defend their corporate assets from expanding cybersecurity threats. And we all understand this is a huge issue. For instance, 68% of business leaders feel that cybersecurity risks are increasing. And as a result, that’s why SASE has become a viable solution approach. It’s an architecture really to better defend the network and the distributed workforce. That’s the important part in today’s hybrid workforce.
However, there’s been a trade-off. The existing software-based SASE only offers protection when the client’s software is downloaded into devices and configured creating quite simply administrative complexity for IT and security teams, while also in the process leaving some devices unguarded such as routers and IOT hardware. So this is important.
Now what is going to be, I think a difference maker is that T-Mobile is collaborating with Versa Networks to offer TSIM Secure, a new SIM-based SASE solution that uses IMSI and IMEI for client-less authentication. So again Todd, what do you think about this particular move? What is standing out from the T-Mobile SASE offering that just debuted here at the show?
Todd R. Weiss: Well, again, Ron, I think this is a smart move by T-Mobile. They’re bringing in these kinds of innovations to their customers and to the 5G and CSP ecosystem, which is huge, as we keep talking about. Bringing in tools, bringing in processes that make things better, easier, and more secure is critical. There can never be enough mention of network and device security in a world that we know is inherently insecure.
Ron Westfall: Yeah, I agree wholeheartedly. And that’s why we see these leaders with sweat on their brows. And so the good news is that this offering is available at the end of the year. So this is something that now they can start planning towards, start kicking the tires.
I think what is different is that T-Mobile’s hardware-based component approach enables devices that are connected to T-Mobile’s network to be automatically authorized through the SIM card. And now from my view, the offering can streamline workload demands and strengthen security policy control for IT and security teams by decreasing administrative burdens. Plus the mobile experience can be improved for today’s increasingly distributed workforce, including frontline and field service workers, as well as employees working from remote locations such as coffee shops, airports, or the home office, wherever they happen to be.
Now as a result, organizations can integrate their IOT devices and routers into their overall SASE implementation, thus avoiding the potential security gap nightmares that we touched on. Plus, I think it’s important to note that devices without a T-Mobile SIM can still download and set up the SASE device client regardless of the wifi network or carrier network they’re on. And so Todd, from your view, what else jumped out about this announcement?
Todd R. Weiss: Well, that, Ron, I think is a groundbreaking idea from T-Mobile. T-Mobile SASE delivers two additional security capabilities that I think are integral to the implementation of a comprehensive SASE architecture. First, something they call Private Access protects business applications and data on the corporate network using a ZTNA-based approach to VPN, that provides devices with secure, direct, least-privileged access that ensures only authorized employees have access to organizational data and applications regardless of where they are.
Then there is secure internet access, which is developed to protect internet connected devices from threats such as malware, viruses, and ransomware through features like web filtering, protection for SaaS applications, and advanced IT network security. And on top of all that T-Mobile offers T-Mobile Security Slice. This is part of its SASE solution too. I see T-Mobile establishing swift differentiation for its network slice capability through time to market advantages over its top tier carrier arrivals.
Part of this is T-Mobile can utilize its nationwide 5G standalone network to use 5G SA enabled devices that provide improved latency and enhanced mobile broadband speeds that compare favorably to wifi, LTE, and 5G non-standalone with built-in security and safeguards. I think this is all really important stuff. Oh, and I also see the new T-Mobile SASE product aligning fully with the rapid growth of the overall SASE market.
Specifically SASE adoption, do you realize increased by 33% in 2022? It’s definitely growing. And the market is expected to generate $9 billion in revenue by the end of this year, 2023. I think this provides T-Mobile with a high upside market opportunity to diversify and expand its revenues taking advantage of its built-in nationwide 5G SA network network capabilities.
Ron Westfall: Well, right on Todd. I think those are things that will be difference makers. And I think on top of the T-Mobile SASE announcement, we saw another I think bold announcement coming out at the show. Specifically, that Ericsson is looking to take leadership in industrializing open RAN. And so the question is how can they do that since we’ve been hearing about open RAN for a few years now and that market is actually in place. But it hasn’t really taken off dramatically as originally anticipated.
So what is different here is that Ericsson is introducing support for open fronthaul access across its cloud RAN and radio portfolios starting in 2024. And so what’s important to note here is that there’s more than 1 million Ericsson radios in the field and our hardware prepared for open fronthaul. So what is happening is that Ericsson seeks to drive the industry in all three areas of open RAN architectures. That includes cloudification, open management with automation, and then naturally open fronthaul itself.
Now to demonstrate his commitment, Ericsson and Telefonica signed, you guessed it, a memorandum of understanding, an MOU, for cloud RAN evolution based on open RAN architecture. Todd, what is, again, standing out about this announcement for you?
Todd R. Weiss: Well, I see this as around just another interesting piece of this puzzle. It’s good stuff from Ericsson and Telefonica here. These are finding ways of making open RAN finally come to the forefront and become part of the marketplace in use, which is what it’s been trying to do for years. So I think this is really important.
Ron Westfall: Yeah, I think you scored an excellent point there, Todd. Because the initial open RAN market was populated by startups and independent vendors that had a primary focus on it. And as a result, the incumbent RAN vendors such as Ericsson, Nokia, Huawei and so forth, didn’t immediately jump in. They had existing customer bases to defend and also open RAN quite simply wasn’t proven yet. Now it’s been making steady progress and I think the difference maker, it’s so much the competitive threats from alternative providers such as Mavenir or Rakuten and so forth. It’s really the fact that the service providers themselves who form the ORAN alliance as well as government agencies who are financing open RAN initiatives are making that difference.
And as a result I see that the biggest shift in future mobile networks is towards cloud-based open networks that are going to leverage the value of 5G networks through exposure of new functionalities and again our friend APIs. And as such, I anticipate that Ericsson Telefonica’s collaboration can bring out the benefits of cloud native networks built on ORAN standardized interfaces again with the industry scale, the high performance and cost-efficient cloud RAN that’s going to be essential for this market to really take off.
Plus, by leveraging existing 5G infrastructure as a foundation, the collaboration aims to accelerate RAN evolution as both companies agree to jointly test, deploy, and evolve the cloud RAN technology with trial deployments in Europe naturally. So Todd, what are your expectations from this announcement? Again, this is all 2024 plus, but what are your expectations?
Todd R. Weiss: Here I applaud Ericsson’s vision that future networks need to be increasingly resilient, open, sustainable, and intelligent. Open RAN plays an important role in achieving this vision, and Ericsson is leading the industrialization of the three pillars of open RAN. All of them, cloudification, open fronthaul and open management for network programmability. They’re really taking the lead here.
Ron Westfall: I agree. In a disaggregated environment, the end-to-end system performance, the automation using AI, we had to get that word in at least once. Software extensions and continuous development are really key for the high performance, and I can anticipate that with Ericsson Intelligent Automation platform or EIAP, Ericsson can enable again, that multi-vendor network management, improve the network performance and enhance customer experience while enabling those extensive RAN program abilities to deliver those operational savings that all of the operators covet and certainly prioritize.
Also with the EIAP platform, this can offer industrial scale automation for cloud RAN for again, those purpose-built multi-vendor radio access networks that are pretty much common throughout all networks in the world, at least amongst the top tier operators. And as such, it includes the software development kit, the SDK, that can empower innovation across industry. That is again, what we talked about earlier, the service providers, the third party software vendors and network providers coming together. And this is I think very important. And Todd, do you have any additional thoughts on the whole open RAN play and Ericsson’s role and what it can mean for the industry?
Todd R. Weiss: No, I think that we really have a good topic here. This is something that I think we’ll be able to follow for quite a while. There’s a lot going on and like you said, open RAN has been something that’s been the talk of the industry for several years and now it’s finally getting to the point where it’s not just people coming up with the rules and regulations and the specifications, but now we’re seeing it actually come to fruition. So I think that makes it a really interesting piece of more options for CSPs developers for the industry. I think it’s a really exciting time to be in this area.
Ron Westfall: Right on Todd. And I think open RAN is really the beachhead for an overall open 5G ecosystem. So by implementing open RAN now the ecosystem, including of course the operators and the application developers can now have more latitude, more runway to basically enable a true end-to-end open 5G implementations. And that’s not there today, but it’s something that we’re trending toward.
And announcements like this I think are demonstrating that there are real tangible progress points that we can look at as to why this is something that’s going to happen and we can basically place our bets on that. And again, Todd, on that high note, thank you for joining today’s 5G Factor.
Todd R. Weiss: Well, thank you. It was great being here and I am enjoying talking to you about these things. It’s been a great pleasure.
Ron Westfall: Right on. And again, thank you everyone for joining. To our viewing audience and our listening audience, as always, thank you for spending time with us and we look forward to seeing you again next time. With that, good 5G day everyone.
Todd R. Weiss: You too.
Other insights from The Futurum Group:
Nokia Dual-Band Massive MIMO Is Key to 5G Performance & Energy Gains
T-Mobile Q2 2023: Breakthrough Growth in Customers and Profitability
Ericsson Uplifts OSS/BSS-driven Service Exposure: The API Monetization Dimension
Author Information
Ron is an experienced, customer-focused research expert and analyst, with over 20 years of experience in the digital and IT transformation markets, working with businesses to drive consistent revenue and sales growth.
He is a recognized authority at tracking the evolution of and identifying the key disruptive trends within the service enablement ecosystem, including a wide range of topics across software and services, infrastructure, 5G communications, Internet of Things (IoT), Artificial Intelligence (AI), analytics, security, cloud computing, revenue management, and regulatory issues.
Prior to his work with The Futurum Group, Ron worked with GlobalData Technology creating syndicated and custom research across a wide variety of technical fields. His work with Current Analysis focused on the broadband and service provider infrastructure markets.
Ron holds a Master of Arts in Public Policy from University of Nevada — Las Vegas and a Bachelor of Arts in political science/government from William and Mary.
