Mavenir: 5G: Time to Change Approach
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The document discusses the transition to 5G core technology, highlighting the challenges operators face with data growth, declining average revenue per user (ARPU), and increasing network costs. It emphasizes the need for virtualization, new business models, and the importance of moving core functions to the network edge to improve efficiency and profitability. Furthermore, it asserts that 5G will enable significant industry transformation through new applications and lowered operational costs.
Mavenir: 5G: Time to Change Approach
- 1. Copyright Mavenir 2019 mavenir.com 5G: Time to Change Approach! 5G CORE ENABLING THE NEW APPLICATION AND BUSINESS MODELS TRANSITIONING TO THE NEW 5G CORE UNDERSTANDING HOW 5G CORE WILL ENABLE NETWORK SLICING
- 2. Copyright Mavenir 2019 2 Operator Data Growth Challenges 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 2018 2019 2020 2021 2022 2023 Avg users ARPU (Local) Data traffic per month per sub (GB) • Declining ARPU • Limited subscriber growth • Data doubling YoY
- 3. Copyright Mavenir 2019 3 Network Cost Challenges € - € 1.00 € 2.00 € 3.00 € 4.00 € 5.00 € 6.00 € 7.00 2018 2019 2020 2021 2022 2023 Network charges per sub per month (Local) EPC estimate per GB sub per month (Local) Euro Access charges per sub per month (Local) Euro • Network cost increasing • Access charges • Network license cost need to decrease greater than data growth
- 4. Copyright Mavenir 2019 4 Network challenges with declining ARPUs • How to handle with projected Data volumes? • How to support increased demand on low latency? • How to decrease network costs to maintain profitability? • How to maximise existing investments? • How to migrate of centralized services to the edge? • How to introduce 5G • How to enable new business model
- 5. Copyright Mavenir 2019 5 What is 5G? Peak rate data 1-20 Gbps User experience data rate 10-100 Mbps Spectral efficiency x1-x3 Mobility 300-350 km/h Latency 1-10 ms Connection density 10k-10m devices/km2 Security Stronger subscriber authentication, user privacy and network security Area traffic capacity 0.1-10 Mbps/m2 Availability 99.999% (of time) Battery life 10 years* Reliability 99.999% (of packets) Position accuracy 10m ‹ 1m Network energy efficiency x10-x100
- 6. Addressing 5G Challenges Copyright Mavenir 2019 6 Low Latency – Micro Services at Network Edge Bits/sec/hertz/$ - New Business Models, Cost and Resiliency Virtualization - All Elements Virtualized except the Radio Open Interfaces – Front haul and Networking Low cost RRUs - Massive Densification Spectral efficiency – Massive MIMO
- 7. Copyright Mavenir 2019 7 The Network of the Future RAN HW Core HW Static TransportStatic Backhaul Data Center Distributed Open Automated RAN SW Functions Flexible Transport (SDN) HW HWHW HW NFVI/Cloud Service NFVI/Cloud
- 8. Copyright Mavenir 2019 8 “Open interface Software on open market hardware – Anything else is considered proprietary” MAVENIR APPROACH TO 5G
- 9. Copyright Mavenir 2019 9 Telco Cloud requires New Web-scale Approach From Network Functions to Services Cloud Compute Cloud Native Virtualization NFV and SDN Network Slicing and DevOps Ready For Web-Scale agility Stateless 1 2 34 5 6 Micro-services Modularity and reusability State externalized Commodity, shared, independent Not monoliths
- 10. Network Moving to the Edge Copyright Mavenir 2019 10 • Bandwidth consumption continues to grow • Networking applications demand low latency – Proliferation of a gamut of use cases • Tele-surgery • Intelligent transportation • Industrial automation • Local offload • Continuing to leverage a centralized control and user plane is sub-optimal and expensive – Building capacity with no revenue • Cannot wait for 5G to evolve • Leverages current radio and core network technologies to deliver an optimal edge network with lowest TCO Service Slices Wideband Radio vRAN Packet Core (4G/5G) Sgi Public access Edge services AI
- 11. Transitioning to 5G Core Copyright Mavenir 2019 11
- 12. Network Slicing Architecture Copyright Mavenir 2019 12 SMF Slice specific Core NFs UPF SMF Slice specific Core NFs UPF SMF Slice specific Core NFs UPF AMF AMF NSS F Global NFs NRF UDM PCF May also be slice specific IMS AF DN DN DN UE1 UE2 UE3 CU- UP CU- UP CU- UP Tracking Area #1 Cell # 2 Cell # 1 Registration Area # 1 S-NSSAI#1 S-NSSAI#2 S-NSSAI#3 CN Slicing Service Slicing AN Slicing eMBB urLLC MMTC
- 13. Copyright Mavenir 2019 13 Operator Vendor Selection Mantra “Nobody ever got fired if I buy from ……” WRONG 100,000 redundancies have been completed/notified in the last 6 months with major Tier one operators Current business models are not sustainable within the next three years. “Three suppliers shrinking to Two”
- 14. Copyright Mavenir 2019 14 Summary • Operators need to start now or face the consequences • Without Virtualization there is no 5G • Open standards and interfaces are achievable • Not a revolution – need Carrier adoption • RAN is an edge service • Moving the core to the edge allows great cost savings against declining ARPUs • New business models will be enabled at the edge WITH 5G INDUSTRY IS ABOUT TO SEE SIGNIFICANT TRANSFORMATION
- 15. Copyright Mavenir 2019 mavenir.com Thank You