5G CaaS: a revolution for mobile network operators?
Faced with rising costs and the need to boost productivity, mobile operators are turning to virtualization as a strategic solution. This shift allows them to rely more on software than hardware, offering greater flexibility. In this context, 5G Core Network as a Service (5G CaaS) is emerging, enabling operators to access network functions on demand. The market includes major players like Nokia, Ericsson, and newer entrants such as Athonet, alongside tech giants like Microsoft and AWS. While this variety offers many partnership opportunities, it also introduces new challenges to navigate.
As a double-edged sword, 5GCaaS exposes the inherent constraints of Software as a Service (SaaS) offerings. The crucial question for the industry lies in the ability of these architectures to function at a large scale.
An increasing need for 5G CaaS: a beneficial solution for MNOs
The innovative features of 5G core networks combined with software (SaaS)
5G CaaS emerges from the combination of advanced 5G Core network functions and the flexibility of SaaS models. Together, they offer a powerful solution that supports the growing complexity of telecom services, thanks to capabilities like IoT integration, improved security, and network customization.
Agility, cost savings, and security with 5G CaaS
This model allows operators to optimize costs cutting initial investments by over 25% while remaining agile and responsive to evolving market demands. Operators can scale gradually and manage network loads more efficiently. On the security front, centralized tools and automated updates strengthen protection, while secure data flows enhance overall network reliability.
Challenges to overcome in a wide ranging market:
Early adopters of 5G CaaS include operators with frequencies for specific use cases and MVNOs. As private networks evolve, businesses also become potential users, often in collaboration with integrators.
Regional differences: The adoption of 5G CaaS varies by region. Europe remains cautious, Latin America shows interest despite economic instability, Africa is enthusiastic but still developing its 5G infrastructure, and Asia is advanced yet concerned about control and governance. These disparities call for region-specific strategies to ensure successful integration.
Service differentiation based on APIs with a shared core: Using a shared 5G core makes it difficult for operators to tailor their services. To address this, operators must be given independent instances and customizable APIs, allowing them to manage their operations autonomously within the shared environment.
Reliance on external partners: Delegating core network management to third-party providers can raise fears of losing control over customer relations. To address this, providers must be seen as strategic partners, offering flexible and autonomous solutions, with the possibility to migrate easily if needed.
Localization, security, and data confidentiality: 5G CaaS must comply with strict data localization laws and ensure robust protection of sensitive information. Operators need strong safeguards, including redundancy systems, and should rely on shared audits or independent experts to reinforce trust and security.
5G CaaS represents a major opportunity for telecom operators, offering flexibility, cost-efficiency, and scalability. Yet, its reliance on SaaS models also introduces certain limitations, particularly regarding the ability to support massive subscriber volumes. While doubts persist, experiences from other industries such as Netflix’s transformation through cloud technologies demonstrate the powerful scalability and resilience these architectures can offer when properly implemented.