Customer case

Impact of stand Alone 5G on the wholesale ecosystem

Tue 16 Jul 2024

5G Stand Alone (SA) represents a major revolution, particularly for telecommunications operators. Sofrecom conducted a prospective study to assess the impact of the arrival of 5G SA technologies on the value chain of the wholesale market of an international telecom operator.

Study objectives

The main objective was to understand the impact of 5G Stand Alone on the wholesale market for telecom operators and in particular on MVNOs (Mobile Virtual Network Operators). The dimensions explored by this study included:

  • Assessing the new technologies and infrastructure required;
  • A business model and the development of usage-based and infrastructure-sharing models.
  • Competition, and in particular the analysis of new players such as towercos, hyperscalers, neutral hosts, and MVNEs.
  • Exploring opportunities for the development of potential new offerings such as slicing, edge computing, small cells, and virtualized MVNOs.

The Methodology applied by our experts

To carry out this study, Sofrecom adopted a rigorous and exhaustive methodology, based on several lines of research and analysis.

1. Interviews with the Group's main retail players

The first step consisted of conducting in-depth interviews with the main players in the distribution market within the group, with a particular focus on the B2B segment. These interviews provided useful insights into the expectations, challenges, and opportunities perceived by internal stakeholders.

2. Review of major studies on the subject

Sofrecom also conducted an exhaustive review of the main studies available on the subject, including reports from external partners. This review provided context for global trends and identified best practices and emerging innovations.

3. Position of the different suppliers

The analysis was enriched by examining the positions of the various technology providers present in the market. This step provided an understanding of vendor offerings and strategies for 5G SA, and how they might influence the wholesale ecosystem.

4. Technical studies

Finally, technical studies carried out by another subsidiary of the Group were integrated into the methodology. These studies provided detailed information on the stages of slicing introduction, MVNO architectures in the 5G world, and other crucial technical aspects.

Benefits for the client

Sofrecom's support brought several significant benefits to the operator, enabling it to better prepare for the impact of 5G SA.

1. Identification of new value-creating opportunities

Thanks to this study, the client was able to identify new value-creating opportunities within the wholesale ecosystem. This includes opportunities in slicing, edge computing, and small cells, which can be leveraged to deliver innovative and differentiated services.

2. Development of innovative business models

The study made it possible to develop usage-based business models, promoting infrastructure sharing and resource optimization. These models are essential to remain competitive in a constantly evolving market.

3. In-depth competitive analysis

By analyzing new players such as towercos, hyperscalers, and neutral hosts, the client was able to better understand thecompetitive landscape and adapt its strategies accordingly. This analysis also highlighted opportunities for collaboration and partnership with these players.

4. Technical and strategic preparation

The technical insights provided have made it possible to anticipate and better prepare for the technological challenges of 5G SA. This includes understanding the necessary architectures, the stages of slicing introduction, and the implications for MVNOs.

5. Positioning on new offers

Finally, the study made it possible to identify potential service avenues on which the operator could position itself, such as Network as a Service (NFV) and virtualized MVNOs. These recommendations are crucial for diversifying offerings and meeting changing market expectations.

This prospective study conducted by Sofrecom clarified the impact of 5G Stand Alone on the wholesale ecosystem. Thanks to a rigorous methodology and in-depth analysis, the operator now has the levers offered by 5G Stand Alone, ranging from the identification of new value-creating opportunities to the development of innovative business models. It can capitalize on this study for optimal technical and strategic preparation for its deployment.