The News: Ericsson launched a new software toolkit aimed at strengthening 5G Standalone (SA) network capabilities and enabling premium services with differentiated connectivity. Read the full press release on the Ericsson website.
Ericsson Brightens 5G SA Use Case Prospects with New Software Toolkit
Analyst Take: Ericsson’s new 5G SA-centric software toolkit is designed for communications service providers (CSPs) to deliver use cases with high requirements on throughput, reliability, and latency at agreed performance levels. Key use case examples include lag-free mobile cloud gaming, video conferencing, live broadcasting, remote-controlled machines/vehicles, public safety services, and evolving extended reality (XR) applications.
The portfolio enhancement comes as the expansion of new use cases and mobile user expectations on the quality of 5G experience are putting greater demands on network capacity and performance. The software toolkit offers the following key capabilities:
- Improved consistent low latency capabilities of time-critical communications with Uplink Configured Grant and L4S (low latency, low loss, scalable throughput) for ensured quality of experience even during network congestion and during subpar radio conditions, including up to 90 ms latency improvement in high-load scenarios.
- Data boost upsell and L4S support in 5G Core, which enables subscribers to buy a boost on top of their existing subscription through notification to the device as well as new capabilities to enable and monetize L4S for selected subscription packages.
- Enhanced Massive MIMO software algorithms for channel-aware multi-user multiple-input multiple-output (MU-MIMO) pairing and optimal beamforming selection based on user velocity. These further boost capacity in mid-band deployments with up to 10% incremental user throughput gain in high load, allowing for smoother introduction of new services that require low latency and high reliability.
- Radio access network (RAN) slicing advancement with intent-base automation for Automated Radio Resource Partitioning and Rate and Delay Control Scheduling to meet target delivery on a 1 ms basis supporting service level agreement (SLA) fulfillment enabled by real-time automation.
I see Ericsson linking the new software toolkit capabilities to its latest Ericsson ConsumerLab report, which identified that 20% of smartphone users are looking for differentiated 5G connectivity. Such folks value premium connectivity and have indicated a willingness to pay a premium of up to 11% for a 5G plan that ensures elevated network performance. From my view, this offering provides data-driven validity key to accelerating the sales and marketing cycle of Ericsson’s 5G SA software toolkit.
Also, the Ericsson ConsumerLab research shows that unsatisfactory 5G connectivity experiences at key locations such as stadiums, entertainment arenas, and airports can cause a threefold increase in the likelihood of customers switching CSPs. Additionally, the research shows that the factors influencing consumer satisfaction are evolving – moving primarily from 5G geographical coverage considerations to more application experience-based metrics such as video streaming quality, mobile gaming/video calling experience, and 5G speed consistency – especially among early 5G adopters.
From my view, the report also substantiated the potential of network application programming interfaces (APIs) for developers as a way for CSPs to cultivate augmented network experiences that customers will purchase. I see network APIs gaining more 5G ecosystem momentum due to the Linux Foundation and Global System for Mobile Communications Association (GSMA) collaborating on the CAMARA Project as well as the GSMA Open Gateway initiative to provide a standards-backed foundation for network APIs that are aimed at broadening developer support. As a result, I expect that high-profile applications well-suited for 5G network connectivity, such as premium connectivity, augmented reality (AR), and cloud gaming, can start to provide tangible revenue diversification for CSPs and developers.
Boosting Ericsson’s prospects, Deutsche Telekom (DT) VP of Network Service Differentiation and Convergence Changsoon Choi stated DT’s prime objective of developing differentiated services by working with Ericsson and partners. Such collaboration has shown that the quality of experience (QoE) benefits of consistent low latency fully aligns with actively pushing the ecosystem in this area. DT welcomes the launch of 5G slicing and L4S in Ericsson’s RAN software offering as it prepares the next steps for delivering these benefits to subscribers.
One area I would like to see Ericsson address is how its software toolkit can also aid and reinforce its ongoing portfolio development initiatives to improve energy efficiency across 5G networks. For instance, Ericsson has developed an AI/machine learning (ML)-enabled dynamic threshold for cell sleep mode capability that can improve energy efficiency across operator networks.
The capability makes use of the massive volumes of data pertaining to attempts, handover, and real-time demand by using an ML-based approach that can deliver more efficient, rapid, and automated decisions on the RAN components that can be put into sleep mode, creating energy savings. Specifically, the estimated energy-saving potential using the Ericsson AI solution can be up to 10%-12% for some CSPs in addition to other savings that are gained through site-level efficiency measures.
Key Takeaway: New Ericsson Software Toolkit Readies Differentiated 5G Connectivity
I anticipate that Ericsson’s new 5G SA-focused software toolkit can play an integral role in reshaping connectivity and catalyzing a transition from best-effort mobile broadband to premium experiences with SLAs by unlocking advanced 5G applications through differentiated connectivity. The key takeaways from the latest ConsumerLab Report provides the data-driven confirmation to incentivize CSPs to place smarter 5G connectivity bets.
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.
Other insights from The Futurum Group:
Ericsson’s ConsumerLab Report Points to 5G Monetization Opportunities
Ericsson: Network Platform Rising
5G Factor VRN: Ericsson and Vodafone Slice Mobile Gaming at Coventry
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.
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.
