Research reveals 28 percent of mobile network operators in developed Asia-Pacific markets will offer some level of 5G commercial service by 2020, compared to global norm of 8 percent

New information shows operators can maximize 5G business opportunities via software-defined, converged wireline network architectures

HONG KONG & SINGAPORE--(BUSINESS WIRE)--Jun. 19, 2017-- In research released by telecommunications research and consulting firm Analysys Mason titled “The Impact of 5G on Wireline Networks in Asia-Pacific,” new information unveils the forthcoming impact of 5G integration for mobile network operators (MNOs) in Asia-Pacific (APAC).

Of note, it was found that 5G migration will be unlike anything APAC MNOs have experienced in the past. The research shows that strategic investment in wireline infrastructure is crucial for operators in APAC to achieve success in supporting future 5G services. Currently, less than 25 percent of APAC MNOs surveyed have a fully integrated wireless/wireline strategy, with the majority planning both sides concurrently, yet independently. The research found APAC MNOs must develop a converged holistic wireline strategy, even if plans to integrate 5G radios are still a ways off.

Other Key Findings:

• Respondents to Analysys Mason’s survey shared that top drivers in APAC to deploy 5G by 2023 are lower Total Cost of Ownership (TCO), greater efficiency and flexibility in harnessing resources including spectrum, fiber and radio network, and support for new revenues.
• 71 percent of MNOs in the developed APAC region are already engaged in some 5G planning to launch 5G services prior to 2024, but only one quarter of those in emerging APAC regions have started.
• Surveyed MNOs cite diverse reasons for implementing 5G at an early stage (2018 to 2023) including: enhancing networks to support a high-profile event such as the Tokyo Summer Olympics, improving cost efficiency and uncovering new revenue streams.
• Delivering new video services through enhanced broadband was cited as the most important use case in APAC. However, operators in Japan are focusing on new user experiences driven by virtual reality. Additionally, connected vehicles and the industrial Internet of Things are key drivers in Japan and Korea, while connected healthcare is the most important driver for India, Australia, and Vietnam.
• Operators must prioritize improving the efficiency and flexibility of existing and future resources, using three new and intertwined approaches – NFV, SDN, and network slicing. These technologies will help converge wireline and wireless networks and tap into both pools of capacity in an on-demand basis, share resources as flexibly as possible, and help create new revenue streams.

Executive Comments:

“Our analysis suggests that mobile network operators in APAC must consider an integrated wireless and wireline strategy, as they prepare their networks for upcoming 5G services. Central to their strategy is integrating fiber and radio across their network architecture – a crucial element for MNOs to stay ahead of competition, transform their cost base, and provide a richer experience for their users.” Stephen Wilson, Principal Analyst, Analysys Mason

“Mobile Network Operators in APAC navigate a unique user landscape compared to other markets, thus they must also rethink how to architect their networks to support 5G services. Ciena’s approach to building networks aligns with the recommendations in the research, where we have long been an advocate of the integration of wireless and wireline technologies, and now with SDN and NFV for orchestration of the physical and virtual networks for optimal flexibility and efficiency.” Anthony McLachlan, Vice President and General Manager of APAC,Ciena