Tackling the cost of a 5g build accenture

Balance costs and benefits in the 5G core. The 5G core will be significantly more complex than 4G. Using analytics-based tools to automate various setup and optimization tasks will help shave costs. In addition, the benefits of virtualization and IT data center models should provide additional savings. Getting the right implementation strategy will be key to your bottom line.

For instance, in remote areas, carriers can use slicing to build their own virtual network on top of a shared infrastructure. A vertical player such as a utility could provide a portion of the infrastructure for a carrier to manage as its own “slice”—its own network—with a promise to open it to others with a certain level of service and quality. In this model, ports, mines and more could provide infrastructure in remote areas, providing them with a new 5G revenue stream, expanding the reach and capability of carrier networks.

Build capacity in the transport network. In 5G, transport network cost will go up because fiber or equivalent low-latency transport will be a more common requirement to move increased data. Carriers will need to invest heavily in it because of the need to support high bandwidth and low-latency applications, as well as for deploying new sophisticated network architecture (such as cloud-based radio network). These applications will reduce capital and operating costs while improving performance.

Plan the radio network. In the switch to 5G, one thing does not change: The radio network component remains the most expensive—traditionally accounting for 70 to 80 percent of network costs. Promising to support a wide range of capabilities makes the 5G radio network more complex and expensive. And, the addition of higher spectrum bands can add a lot of capacity but with very limited reach. CSP leaders should conduct detailed strategic planning upfront to decide what radio network capabilities should be deployed, where and how.

To make the most innovative, disruptive 5G use cases work, CSPs will require a 5G network built for reach, scale and performance—no easy feat. Operators must further explore models for lowering network cost. Some may investigate neural host networks, which sit in hotspots shared by multiple networks (think commercial buildings, urban hotspots). Remember our utility and port example? As the network boundaries between operators and clients blur, expect to see vertical players and other parties (such as venue owners) provide the network infrastructure in some remote or private locations. With slicing and other sophisticated network management techniques, network operators can loosely integrate to that infrastructure, reselling it to their customers with specific performance assurances and security.

Deploying 5G in a cost-efficient manner can help industry leaders fuel new business models and generate additional sources of revenue over the coming years. Accenture Strategy research found that 84 percent of telecoms companies project growth rates of 5 percent or more by 2020, compared with just 40 percent growing at those rates today. 2 Communications industry leaders are looking now to scale 5G deployment in a cost-efficient manner because they recognize its power to drive new services. Those who plan speedily—but wisely—are best equipped to reap first-out-of-the-gate advantages in a race that is shaping up to be intense.