Already a world leader in software-based network transformation, Mavenir has virtualized core network and RAN functions on open-interface hardware platforms to bring solutions to the market that meet the 5G standard. Not only do these architectures give control of the technology back to the operator, they are also much less expensive.
As the reality of commercially available 5G approaches even quicker than anticipated, there is little question of the predicted value of the technology. Analysts have estimated as much as $12 trillion in global economic activity in the next ten to fifteen years, a number driven by the relentless expansion of IoT (internet of things) apps, services and devices in all industry sectors.
With many operators around the world still implementing 4G, the question is not one of the technology's value, but one of how to build-out and monetize 5G. The problem lies in the fact that global capex is decreasing, as the GSMA forecasts that operators will invest $673 billion between 2017 and 2020 versus $772 billion over the preceding four years. Essentially, carriers are being forced to build out new and vastly different 5G networks with less money while still attempting to fully realize their 4G and LTE investments.
To solve the problem, many are turning away from the traditional vendors of the last generation's proprietary hardware to search for innovative suppliers that can quickly bring something new to the mix with a smaller capital outlay. That's where disruptive players such as Mavenir come into the picture.
The 5G technical challenge is in squeezing vastly more data into a much faster, more efficient and less expensive pipe. To answer it, various strategies such as carrier (spectrum) aggregation and densification of the network with small cells are beginning to be deployed. But the requirements of 5G go well beyond that. Essentially, the entire infrastructure should act as a cohesive platform that has a huge variety of different applications; it is fine-tuned to flex with demand and quickly tailored to meet the unique requirements of each new service as it is deployed.
Only a fully programmable, end-to-end framework, like Mavenir's, with software defined networking (SDN), network functions virtualization (NFV), multi-access edge computing (MEC) and network slicing, cloud-based radio access networks (Cloud RAN) can fully deliver on the 5G requirements while also being deployable at the low total cost of ownership (TCO) required for operators to make money.
To that end, Mavenir developed a TCO model that found that Cloud RAN architectures will save operators 37% (a 49% capex and 31% annual opex reduction) in deployment and operational costs. These savings provide the margins required to turn the 5G network into an engine of growth while still leveraging the 4G network. To learn more about how our TCO model can help you understand 5G network economics, contact Mavenir.