Mobile Network Operators (MNOs) could reduce their total cost of ownership (TCO) by up to 36% if they accelerated their move to the converged 5G packet core (5GC). Mavenir, a network software provider, released an in-depth study with Monica Paolini at Senza Fili on how MNOs can reduce TCO by 36%.
The study concludes that MNOs can save significant costs by moving to a cloud-native Converged 5GC with 5G standalone (SA) support as they deploy their 5G access network instead of relying on legacy EPC technologies and 5G non-standalone (NSA) packet core support. The study said the longer MNOs take for the transition, the more their cost will be.
Postponing Adoption of a Converged 5G Core Not a Good Idea for MNOs
According to the basis of research, a TCO comparative analysis, postponement of the adoption of converged 5GC would raise the TCO for the MNOs over a five-year period. The research model has assumed that the MNO would move to a state-of-the-art converged 5GC and SA solution in the future, replacing the traditional evolved packet core (EPC).
With this white paper, a key question about when should be an MNO with 5G access shift to a cloud-native converged 5GC with SA support has been answered. The comparative analysis takes into account both the MNOs, which are early adopters and late adopters.
In both scenarios, the MNO does move to the cloud-native converged 5GC with SA support. It is just that the early mover is able to save high costs over the late adopter. The study revealed that the early adopter could save up to 36% of costs for a fifth-year switch.
Ashok Khuntia, GM, Packet Computing, Mavenir, said, “This research reveals that delaying an essential network transition will only increase costs in the long run. As the ‘fastest-growing software vendor for Converged 5G Core.”
