2nd year of 5G Readiness Index (5G Readiness Index 2022) Launched by Strategic Consulting kerney Turns out that Europe is still lagging behind other parts of the world in preparation for a massive rollout of 5G. However, it is ongoing and, when it does come, the European telecommunications companies that made the leap will now reap all of its benefits.
The index measures a country’s 5G readiness based on three factors:
- spectrum availability. Is 5G available in all three bands: low, medium and high (mmWave)?
- deployment. What percentage of operators have introduced 5G services in each band and how many have an independent 5G core?
- commercialization. What are the steps taken by operators to ensure relevant 5G share across all mobile subscriptions?
It also takes into account all the above factors and more. Since the first version in 2021, we have seen stand-alone 5G core launches in more countries, enabling telcos to deliver innovative services to customers using capabilities such as low latency, massive concurrent connections, or network sharding make. Maximizing their effectiveness will depend on the dynamic ecosystems that are yet to be created. These can become de facto benchmarks or even create new control points in the value chain.
So . importance of Be at the forefront of 5G innovation And don’t be an ordinary buyer of others. To reach that point, it will be necessary to understand what it takes to prepare a country and its market for 5G.
“Europe is lagging behind on 5G!” There’s a cry we finally heard Mobile World Congress, The 5G Readiness Index 2021 reflected this, and Kearney’s new 2022 index confirms it, at least for now.
gross, 11 of the 28 countries analyzed by Kearney have at least one operator with an independent 5G core, Asia leads with seven countries, while Europe is behind Finland and Germany with reaching this point., All operators in only two countries that have launched an independent 5G core—Singapore and China—have opened up their markets to 5G transition.
11 of the 28 countries analyzed by Kearney have at least one operator with an independent 5G core
This year’s index shows that only 10 countries have made high-band spectrum available, and operators in only five of them (the United States, Australia, South Korea, Thailand and Japan) have started full commercial services within it. Huh. So far, no European country has gone that far, although select services have been launched with limited mmWave licenses, including Germany. The unavailability of millimeter wave spectrum is disappointing, as its advantages are the cornerstone of new 5G-enabled high-speed services.
Europe is behind Finland and Germany with reaching this point.
The index also identified more major events over the past year:
- USA still ahead of other countries, Its regulator has provided spectrum in all three band classes, and national operators have made the most of it by launching services. An operator has launched an independent 5G core. There is also an operator in Canada that offers 5G services through its newly independent core.
- South Korea, which was ranked second in the 2021 index, has dropped to fifth place. Because it has not provided low-band spectrum despite high subscriber penetration.
- Most of the Nordic countries are leadingThanks to increased spectrum availability and widespread deployment in all bands, Sweden has been held back by a lack of mmWave spectrum, as full availability of 26 GHz is not expected before 2025. This slows down Sweden. Sweden and there is a risk of undermining consumer enthusiasm.
- Germany becomes leader of EU4 from a backward country (France, Germany, Italy and Spain) and the UK, thanks to operators launching 5G in multiple bands. Only one operator has launched a standalone 5G core.
- France is now lagging behind Due to its late 5G launch (Nov 2020) from other big European countries and apparently low customer interest in it.
- good results in the middle east (Saudi Arabia, UAE and Qatar) is a testament to the quality of their networks and their robust deployment. Admission is 9 to 11%. A Saudi operator has launched a standalone 5G core.
- Australia 5G. was one of the first countries to launch, has continuously expanded spectrum access in all bands and has enjoyed successful commercialization. It has 18% 5G penetration, ranking second in the index.
- Adoption (as a percentage of total customers in the first quarter of 2022) is negligible across Europe. Switzerland is the best country with 13%, but it was launched in April 2019. Belgium is the worst-hit country, with 1.7% of connections. The adoption rate in South Korea is 31%.
- In South Korea, the government has announced a push to create an ecosystem of companies that use and leverage 5G (with a goal of 1,800 5G service companies by 2026). They understand that operators will not be solo drivers but facilitators.
- The deployment of new capacity in the United States allows operators to launch efficient services, such as fixed wireless access (FWA) 5G. One operator is using 5G to equip an ambulance with a high-quality video feed that medical professionals can watch while patients are on their way.
- Europe is behind, but not hopelessly. need for alertness and concentrationAs well as preparing operators to win with 5G when their countries are ready.
How Telecom Companies Can Win With 5G
To take full advantage of 5G, European operators need to do two things:
- Execute rapid technological change for 5G, anchored in an independent core, Core is essential. If you haven’t deployed it yet, you need to do so as soon as possible to unlock all the brand new products and services that 5G brings. As radio access networks (RANs) and network infrastructure are ready, they will need to be aggressive in promoting network capabilities to partners and third-party developers, working together to embrace the new business model.
- Monetize 5G step by step, building an ecosystem of products, services and partners. It’s about reaching the highest possible expectations of monetization, but the path must be carefully crafted. The first step in basic pricing can be quick, but dealing with intermediate and advanced pricing structures will require discipline, vision, and some exposure.
Right now, 5G lacks innovative large-scale use cases for customers to adopt, Without attractive 5G products or services, people will not see the benefits. However, operators are questioning whether it makes sense to invest more in 5G. It’s a classic chicken and egg dilemma, but it’s going to start somewhere, led by early carriers and their providers figuring out that everyone wants 5G. First you have to plan monetization with small steps and then plan the ecosystem to take advantage of its potential.
5G lacks innovative large-scale use cases for customers to adopt
“It may seem like we are still at the beginning of the 5G journey, but time is short for Spanish telcos to catch up with the United States and other markets. The first to do so could create a blue ocean and a price war in connectivity services. can be avoided”, he says. Philippe Rombert, partner in Kearny, responsible for the telco sector in Spain and Portugal.