Dynamic Spectrum Sharing: The Pros and Cons

5G - Dynamic spectrum sharing - DSS

Dynamic Spectrum Sharing (DSS) has emerged as one of the hot 5G discussion topics [see here on T-Mobile and Verizon]. This feature which allows simultaneous operation of LTE and 5G technologies has become a bellwether of product maturity and 5G leadership for equipment and silicon vendors and for service providers. But how important is DSS and is it worth all the attention?

What is DSS

DSS allows LTE and 5G to share the same frequency spectrum. The base station dynamically assigns resources to handsets operating on LTE or 5G technology. DSS allows operators to turn on 5G without expanding into new spectrum which makes it useful for spectrum constrained service providers. It is also attractive for service providers who want to claim 5G status quickly by leveraging their existing infrastructure and frequency spectrum.

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CBRS PAL Spectrum Valuation

CBRS Spectrum Auction Valuation

Spectrum pricing is a function of supply and demand. Over the course of recent 5G spectrum auctions, regulators demonstrated, yet again, their influence on the outcome. Italy and Taiwan are two examples which set a record valuation for the 3.5 GHz auction. This year, we will see one of the largest auctions ever: the CBRS auction scheduled to start in June [Note 1]. There are a few characteristics that make this auction unique. However, for spectrum valuation, uniqueness ads an undesired element of uncertainty. Here, I outline some factors that impact the CBRS spectrum valuation.

5G 3.5 GHz Spectrum Auction Valuation - Reserve Price vs. Final Price
5G 3.5 GHz Spectrum Auction Valuation – Reserve Price vs. Final Price [Source: Xona Partners]
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The 5G Roadmap in Simple Terms

5G Roadmap

The basic building blocks of 5G were introduced in Release 15 which is now in commercial deployments. In addition, the 5G roadmap has defined two more releases. Release 16 brings in new features in addition to improvements to features introduced in Release 15. Last December, 3GPP identified Release 17 work items. Below, is a summary roadmap in easy to understand terms.

5G Roadmap
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The Cost Model for Enterprise Private Wireless Networks with Satellite Backhaul

The satellite and cellular wireless industries have long progressed along parallel tracks that rarely intersected [see here]. However, this could change in the next few years [see here]. Both satellite and cellular technologies are evolving to improve performance and reduce cost through technological innovations and new business models. In our recent paper, we analyzed the cost model of remote enterprise private wireless networks with satellite backhaul. We also addressed recent developments in both the satcom and cellcom networks where satellite communications is seen as another access technology of a hierarchical cellular network. Here, I like to provide an additional perspective because cost is only one part of the equation: what matters most to the enterprise is the return on investment. Putting such deployments into context helps to appropriately frame the RoI.

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A Perspective on the Edge Computing Value Proposition

Edge Computing Value Proposition

Last week, I had the opportunity to attend Edge Computing World where I participated in providing a workshop on the economics of the edge. Over the course of two and a half days of discussions common themes become evident. Here, I share a few observations on the edge computing value proposition and recent market developments that indicate what could be coming in the next few years.

Fuzzy Landscape

To start, I am amazed at market predictions related to the edge opportunity: they range from hundreds of billions to a few trillions of dollars of economic opportunity. Considering the context where industry still needs to define what edge computing is, I wonder the value of such predictions!?

The vast nature of edge computing is what makes it interesting. It brings various parts of the technology ecosystem together: application developers, cloud players, enterprises, device vendors and connectivity providers to name a few. This ecosystem variety manifests itself in the large number of edge computing open source projects leading to a confusing array of overlapping activities.

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MNO Migration Strategies: Core Network Migration

5G Core Migration

In my previous article, I wrote about developments in virtual RAN, and indicated that the actual focus on the service providers is on core network migration strategies. The RAN receives high attention because it consumes more of the MNO capex and opex than the core network. This makes it a primary target for cost reduction. However, the core network strategy is where MNOs are placing their current emphasis because they understand the impact the core network architecture has on their business proposition and future viability.

In this article, together with my Xona business partner Dr. Riad Hartani, I address the evolution of the mobile core network and related complexities encountered in core migration projects we undertook with different service providers. The mobile core network in its broad definition includes the packet core, the services network, the mobile edge and the operating systems.

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MNO Migration Strategies: An Update on Virtual RAN

5G-virtual-RAN

Over the past week, I had the opportunity to get a full status update on Radio Access Network (RAN) transformation at the Telecom Infra Project (TIP) Summit in Amsterdam. I also had the opportunity to speak with a few service providers on the evolution of the telco network. Understanding the pain points and motivation of the carriers is critical to assess future market developments. What I found was that while virtual RAN is the major activity of the TIP ecosystem, the priority of the service providers is to firm up the core network evolution strategy. In this post, I summarize developments in RAN virtualization. I will follow up in a second post on the critical aspects related to the core network.

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Can Telecom Service Providers Monetize the Edge: Why the Telco Edge Cloud will be Far!

Edge computing - telco edge cloud

“Where is the edge?” is one of the most popular questions I heard at telco industry events. The answer often comes as “the edge is where it needs to be.” Some understand this to mean wide distribution of computing hardware that will make the telco edge cloud. Here, I will argue why wide distribution of computing is unlikely to happen in telco networks. The reasons are many – I will not go through them. Instead, I will address one factor only. To position the context, this applies to the off-premise or data center edge computing services for consumers and enterprises. See my previous article addressing the on-premise edge computing opportunity.

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Can Telecom Service Providers Monetize the Edge: On-Premise Edge Computing

Edge Computing

As 5G rolls out, edge computing is the hope of service providers to finally provide differentiated services. Service provides have two paths to monetize the edge: a consumer services path and an enterprise services path. The former plays to the strengths of the mobile service providers. The latter, enterprise path, is as an incremental opportunity that 5G could provide.

There are two deployment models to provide edge computing services to enterprises.  The first is on-premise services where edge computing is located at the enterprise. The second is off-premise services where edge computing is located at an edge data center. How will service providers go about monetizing the edge and which of these options they will pursue remains to be seen. Here, I will focus on the service provider opportunity for the on-premise enterprise segment leaving the off-premise and consumer segments to a future post.

Edge Computing Deployment Models
Edge Computing Deployment Models in Telco Networks.
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Is OpenRAN The Answer To Low-Cost Networks?

Is OpenRAN (Open Radio Access Networks) the path to saving costs in radio access networks? Vodafone seems to think it is as it trials the technology in its networks in the UK and Africa. Among Vodafone’s goals are: 1. Improve supply chain resilience; and 2. Connect rural communities using standardized, lower cost network equipment. This is good news for OpenRAN ecosystem companies such as Mavenir, Parallel Wireless and others. But I think Nokia, Ericsson and Huawei are not panicking as Vodafone drives to empower other vendors. This is because there are a few serious obstacles in the path of OpenRAN to commercial deployments.

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The Media and Broadcast Sectors Intersect with the Mobile Industry

IBC2019 - Media and Broadcast Sector

I had the opportunity to spend a few days last week at the media and broadcast sector event IBC to check out the latest developments in the these sectors. Video dominates Internet traffic, so this was a good platform to check out what the ecosystem players from “lens to screen” are working on. Of interest to me is the processing, storage, and distribution of media which will benefit from edge computing and evolution of mobile technology. Here, I wanted to share a few observations.

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Technical Challenges in Edge Cloud Development

Technical challenges in edge cloud development

Accounting for technical challenges in edge cloud development is critical to understanding the evolution of the edge cloud over time. This area remains ill defined today as confusion reigns in the market. Part of the reason comes from the large number of applications that benefit from edge computing. These applications come from different industry and consumer verticals, leading to different types of edge cloud implementations. Players from different backgrounds that include cloud players, telcos, and enterprises are in process of developing these approaches, which hopefully would converge at some point in the future.

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The Prospects for mmWave 5G

mmWave 5G

The prospects of millimeter (mmWave) 5G deployments have peaked the interest of mobile ecosystem players, investors included. While mmWave frequencies offer unmatched capacity, their coverage footprint lead to high network roll out and operating costs*. This raises questions on the financial viability of mmWave 5G. Vendors and suppliers continue to face tough decisions about supporting these frequency bands. To assess the prospects of mmWave 5G deployments, we apply the supply/demand economic framework. The ‘supply’ side consists of three critical factors: Spectrum, application and ecosystem. On the other hand, the pressure to deploy 5G – the need for capacity – represent the ‘demand’ side.

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Cellular IoT Growing Revenue!

Cellular IoT

Mobile network operators don’t breakout cellular IoT service revenue. They keep the numbers confidential and report only the number of connections. China Mobile broke away from this practice becoming one of the very few that publicly reports this number. It announced cellular IoT service revenue of RMB 5.2 billion (USD 736 m) in the first half of 2019. This is under 2% of mobile revenue (personal and corporate). At this rate, China Mobile is around 2x the industry average.

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Mobile-Satellite Intersect Applications

Mobile-satellite intersect

The mobile and satellite industries progressed along parallel path, rarely intersecting. This is because neither side could satisfy the value creation needs of the other side [see here]. However, there is a renaissance in satellite communications brought about by high-throughput satellites and improved launch economics. Entrepreneurs from outside the industry like Elon Musk and Jeff Bezos are planning terabit-sized low-earth orbit (LEO) constellations. On the other side, the economic promise of 5G made it central in a trade war between the US and China! Academia is already researching the intersection of satellite and mobile communications under the banner of 6G. So with these developments, what are the opportunities for mobile-satellite intersect in the short and medium terms?

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