Future proofing your 5G strategyDan Hays, Principal, PwC Strategy&

PwC

5G deployment will likely be a long process…

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Source: PwC's US 5G mobile index, 2019

Near-term 5G deployment timeline

2018

Initial 5G fixed wireless access on MMwave

Initial 5G mobile networks begin limited coverage

Early 2019

Initial smartphone availabilityLate 2019

Expanded mobile coverage and device availability

2020

PwC

…and to date, 5G industry hype is outpacing rollout

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Source: PwC's US 5G mobile index, 2019. Jan. 1, 202 figures are projected.

PwC's US 5G mobile index

PwC

We recently surveyed MNOs to assess their 5G outlook

During Q2 of 2019, PwC’s Strategy& team interviewed leading operators in North America, Europe, Middle East, and Asia.

We focused specifically on network objectives and strategic investment areas for the next 3-5 years, was well as how operators plan to deploy 5G.

Interviewees were senior executives in Network, Procurement and Finance.

38%

46%

15%Procurement

Network strategy/planning

Finance

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PwC

% of respondents using one or more of these 5G migration paths for RAN (multiple options possible)

33%

33%

100%

Densify by adding small cells

Densify by adding new macro/micro layer

Overlay of existing macro layer

Uncertainty of 5G plans is high

• The 5G business case is still unclear.

• All interviewees plan to deploy non-standalone (NSA) 5G.

• The use of massive multiple-input multiple output (MIMO) technology for increased capacity and coverage is most widely planned.

• Movement to standalone (SA) 5G is seen as happening starting in as little as 2-3 years.

• Small cells are not viewed as an investment priority due to a lack of cost-effective deployment and operating models.

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PwC

% of respondents stating as a priority in the next 3-5 years

While 5G rollout is a top priority, it is not alone

• 5G rollout is a focus area for investment for almost all operators.

• Network virtualisation and 4G expansion are a secondary focus.

• Almost all interviewees have done partial or complete core virtualisation, or will be doing so in the next 2-3 years.

• The case for RAN virtualisation is seen as less clear due to technical challenges and unconfirmed Total Cost of Ownership (TCO) benefits.

21%

50%

64%

79%

79%

93%

Others

IoT solutions

Cloud and data centres

4G expansion

Network virtualisation

5G rollout

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PwC

% of respondents considering core or RAN virtualisation in the next 3-5 years

Virtualisation was widely cited as a key opportunity

• Consensus that network virtualisationis a priority for the next 3-5 years.

• Core virtualization is a consensus top priority.

• Divergence in views on whether there is an investment case for RAN virtualization due to:

• Technical challenges

• Unclear performance impact

• Lack of proven examples

• Unconfirmed savings

7%

33%

93%

67%

Core virtualisation

RAN virtualisation

ConsideringNot considering

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PwC

What can be done to future-proof your 5G strategy?

Network operators

• New spectrum use models• Evolved backhaul approaches• Revised capital lifecycles• Segmented coverage• Greater network standardization• Big data based network planning• New deployment models• Optimization automation• New monetization strategies• Increased focus on enterprise

Enterprise and governments

• Early planning, timely action• Technology trials and partnerships• Experimentation with alternative pricing

structures• Focus on customer / user experiences• Development of new employee experiences• Large-scale automation• Prepare for data tsunami

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PwC

Want more? Visit pwc.com/us/5Gindex

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