Global Mobile Trends 2023
Navigating an uncertain world
February 2023
Copyright © 2023 GSMA Intelligencegsmaintelligence.com@GSMAi

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3

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023
The digital consumer in the 5G era
Mobile network automation
The mobile edge and network slicing
API monetisation
Satellite and non-terrestrial networks
The enterprise verticals story
Private wireless networks
The three Ss
ESG and the drive to net zero

Much has changed since our firstpublication of Global Mobile Trends
in 2016. Technology has advanced,
companies have come and gone, anda pandemic has affected everyone.
As ever, the Global Mobile Trends
research seeks to understand themost important developments intelecoms and the broader TMT
space, and explain what theymean for people, companies andgovernments.

4

GLOBAL MOBILE TRENDS

5G in 2023
The digital consumer in the 5G era
Mobile network automation
The mobile edge and network slicing
API monetisation
Satellite and non-terrestrial networks
The enterprise verticals story
Private wireless networks
The three Ss
ESG and the drive to net zero

Five keytakeaways

5

Five key takeaways

Five key takeaways
2022 was theyear 5G went
mainstream

Privatenetworks andedge havecome of age

The metaverse
is being built,
but will they
come?

Sustainability is
the number one
priority

Satellite is a
glass half full

REASONSREASONSREASONSREASONSREASONS• Easing of pandemic
effects• A devices ‘third wave’• Exposure to global
market volatility• Lower device prices• Enterprise demand
for guaranteed
connectivity• Climate change• 400 million people
still without mobile
broadband coverage• Improved network
coverage• Low-latency
applications• Gaming success• Business sense• Pragmatism reigns• Fewer supply-chain
issues• A gateway to 5G
standalone (5G SA)• Proof points and avirtuous circle

DATA POINT

5G has passed 1 billion
subscribers. Take-up
is proceeding fasterthan with any previous
mobile network
generation (4G tookaround 2 years longer).

DATA POINT

63% of operators
say private networks
are critical to theirenterprise success.
86% say the same for
5G SA.

• Facebook/Meta
pivot

DATA POINT

The metaverse has no
firm market size, butestimates are up to$150 billion. Meta hascommitted to invest
nearly $20 billion in
2023. Operators remain
guarded, with only 7%
rating it a significant
business opportunity.

DATA POINT

Almost 85% of
operators rate energy
efficiency as the top
priority in networktransformation.

DATA POINT

The revenue upside
potential is $30 billion
by 2035 (3% oftelecoms industry
revenue)

6

GLOBAL MOBILE TRENDS
Five key takeaways

The digital consumer in the 5G era
Mobile network automation
The mobile edge and network slicing
API monetisation
Satellite and non-terrestrial networks
The enterprise verticals story
Private wireless networks
The three S’s
ESG and the drive to net zero

5G in 2023

Entering the next phase

7

TOPIC OVERVIEW

5G in 2023
Why it matters
5G availability spreads
across the world• 5G commercialisation gathers pace
• Networks established in developed markets• Emerging markets: the next stage of 5G launches

Over half of mobile connections
on 5G by 2030

• Global 5G connections surpass 5 billion• Majority of mobile connections on 5G• North America, East Asia and GCC markets continue to lead on adoption

Is FWA a long-term alternative
to fibre?

• Consumer appeal for 5G FWA• Factors for successful rollouts• FWA connections total 41 million in 2025

5G standalone:a promising outlook• URLLC and network slicing: key for operators• Rollouts underway in pioneer markets• Significant plans around the rest of the world

5G-Advanced and the returnof multicast• Multicast services: a priority for operators• The B2B push continues• Have AR and VR been overhyped?

Regional perspective

Considerations ahead5G in 2023

WHY 5G MATTERS IN 2023

The next phaseof 5G
Financials

Data traffic

Changing demand

Revenue generation: Every newtechnology generation brings a
new wave of capex demand, but
we have not seen a corresponding
increase in revenue since 3G. This
helps explain why two thirds ofsurveyed operators saw revenue
generation or cost savings as
their number one goal in 2022.
Key to growth are meeting therequirements of consumer use
cases (including 5G FWA) andserving enterprise customers withsolutions such as network slicing.

Growth in data usage: According
to Ericsson, data traffic will growfourfold between 2022 and 2028.
Existing networks would struggle
to meet demand in areas where it
is at its greatest.

Consumers will demand 5G:
70% of consumers in a GSMAIntelligence survey claimed thatability to connect to 5G was either
important or very important. As
activities such as online gaming
and streaming become more
popular, consumers will demand
the best possible experience.

mmWave: While often lauded
for its speed, a further benefit ofmmWave is its huge capacity indense urban areas, with factors
such as low propagation less of
an issue.

Enterprise requirements gofurther: Networks need to beready to support businesses
as they complete their digitaltransformation, in areas suchas artificial intelligence andautomation.

8

5G in 2023

9

5G availability spreads across the world
Launches begin in emerging markets• 5G adoption varies significantly
around the world but is now
available in most countries.

5G commercialisation gathers pace around the world
Data correct to 1 October 2022

• Across North America, East Asiaand the GCC markets, networks
are already firmly established, andoperators are looking at what comesnext. While European operators
started later and adoption is not yetat the same level, 5G networks are inplace across the region.
• The next stage of 5G deployments
has started, with launches in many
emerging markets. The recent
launches in India and Nigeria signal
a huge number of potential new
subscribers.

Live 5G network

Planned 5G network

Note: Status assigned where an operator has stated a commitment/timeline (planned), or announced a commercial
5G launch (live). Status defined as live where at least one operator has commercially launched 5G services.

Source GSMA Intelligence10

5G in 2023

Over half of mobile connections on 5G by 2030
North America leads but Europe is closing the gap• North America, East Asia and GCC markets will continue tolead on 5G adoption. With 5G already established, operators
are now rolling out standalone networks.

• In Asia Pacific, several large markets are yet to launch 5G,
bringing down the average for the region. Ambitious rollout
plans in India are set to change this.

• While Europe is currently behind, expanding coverage and 5G
devices moving into the mainstream will help reduce the gap.

• Operators in Latin America took a wait-and-see approach
to 5G but are now recording growth in coverage andconnections.

5G to spread globally across subscriber base
5G as a percentage of total connections for the top 20 markets by 5G size (connections) in 2030
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
US
2022

Germany

UK

Japan

France

China

Italy

Thailand Brazil

Türkiye

Iran

MexicoRussia Vietnam

South Indonesia India Philippines
Nigeria
AfricaBangladesh

2030
Source GSMA Intelligence11

5G in 2023

Is FWA a long-term alternative to fibre?

Connections growing but market conditions need to be right• In the GSMA Intelligence Consumers
in Focus Survey, 42% of consumers
saw 5G fixed wireless access (FWA)
as an appealing proposition. The
outlook for the technology rests on
a combination of factors though,including the pace of 5G network
rollout, spectrum availability andrefarming, and the marketing andpricing strategies of operators. With
energy consumption high on theagenda and converged operators
primarily focusing on fibre for homebroadband, there is no guarantee of
perpetual growth in FWA.
• Nevertheless, over the next four
years, 5G FWA connections will growby around 90% per year (on average,
across the 52 countries that have
either launched or announced a 5G
FWA service). As 5G rollout starts
in more developing markets, the listof fast-growth markets will expand,with further operators benefitingfrom the 5G FWA opportunity.

Connections growing globally for FWA
Global 5G FWA connections (million)

41

28

17

9

1

4

2020

2021

Data correct to 30 June 2022.

2022

2023

2024

2025
Source GSMA Intelligence12

5G in 2023

5G standalone: a promising outlook
But plans need to play out to expectations• With the first stage of 5G rollouts
completed and focus shifting toenterprise use cases, 5G standalone(5G SA) will be essential todelivering the real benefits of 5G.
The GSMA Intelligence Operators
in Focus Survey confirmed that
network slicing and ultra-reliable,
low-latency communications(URLLC) are key considerations for
5G rollouts.
• It therefore makes sense that the
number of standalone networks has
been expanding, particularly among
5G early adopters in North America
and East Asia.
• While rollouts are at an earlier stageacross the rest of the world, planssuggest this is set to change.

5G network rollout progress
Data as of Q3 2022
100

100%

103

80

80%

60

60%

51
40

40%

20
22

20

20%

14
15
3

0

0%
EuropeLive 5G networks

Asia Pacific

Latin America

Middle Eastand North Africa

Percentage of live 5G networks that are 5G SA

Sub-SaharanAfricaNorth
America

CIS

Percentage of live 5G networks that are 5G SA
or planned to become 5G SA
Source GSMA Intelligence13

5G in 2023

5G-Advanced and the return of multicast
New capabilities and use cases under trial• 5G-Advanced is the next version of the 5G
standard, augmented with new capabilities and(by extension) use cases.
• The GSMA Intelligence Network Transformation
Survey suggests more than half of operators
would deploy 5G-Advanced within two years.
While past experience tells us to be suspicious ofoverly optimistic expectations, the opportunities
presented by 5G-Advanced are clearly on theradar.
• Multicast services delivered over mobile
networks have been possible for years but
have never gained commercial success. Aninterest in 5G-Advanced supporting multicast
services could indicate willingness to explore thespace, potentially targeting new areas such as
automotive.
• Low-cost IoT was another top priority for
5G-Advanced, aligning with a continued push on
B2B services. Current IoT solutions are evidently
too costly, but it will take time to scale new
5G-Advanced IoT capabilities.

Multicast tops 5G-Advanced technology feature priorities
for operators
Which 5G-Advanced technology features are most important to your network transformation priorities?
Rank top two.
5G multicast services
20%

22%

Lower-cost IoT support
24%

12%

Enhanced integration with satellite resources
17%

20%

Enhanced integration with drone resources
14%

17%

Improved device positioning accuracy
12%

16%

Improved AR/VR support
13%
Ranked 1st

13%
Ranked 2nd
Source GSMA Intelligence Operators in Focus: Network Transformation Survey 2022

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5G in 2023

Regional perspective
EuropeChina

Africa• European markets are notshowing the same levels ofadoption reported by leading
markets, where operators
have moved beyond 5G
non-standalone (NSA) andare rolling out 5G SA. A key
factor here is fragmentationand low ARPU induced bycompetition levels, leading toless investment.

• The huge population,
regulatory focus and attractive
tariffs have led to China
becoming a global 5G leader.
At the end of 2022, China
accounted for 60% of 5G
connections globally.

• African 5G launches have inmost cases come later thanelsewhere in the world. Withless capex available for
network upgrades and handset
costs still expensive for
many, affordability remains
prohibitive for the average
consumer.

15

5G in 2023

16

Considerations for the year ahead
Will consumer 5G provide
a return on investment tooperators?
• Despite billions in investment, inmost cases ARPU has not seencorresponding growth, with fierce
competition discouraging pricing
premiums.
• Around 50% of consumers in the
GSMA Intelligence Consumers inFocus Survey claimed to be interested
in add-on services, representing an
opportunity for incremental growth.
Nevertheless, the enterprise segment
remains the major 5G opportunity.

Will we see real growth inemerging markets?
• The reducing cost of handsets,
together with tariffs often priced
without a premium, is resulting infaster adoption for 5G than thatseen with 4G. The low penetration offibre in emerging markets provides a
promising landscape for 5G growth.

Is AR/VR overhyped?
• AR/VR was regularly cited as amain use case for 5G, but the GSMAIntelligence Operators in Focus Survey
suggests it is not a priority among
operators.
• Sales of AR/VR headsets remain flat.
A reduction in headset pricing and anincrease in content are needed before
AR/VR moves to the mainstream.

17

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023

Mobile network automation
The mobile edge and network slicing
API monetisation
Satellite and non-terrestrial networks
The enterprise verticals story
Private wireless networks
The three Ss
ESG and the drive to net zero

The digitalconsumer inthe 5G era

Driving the ‘wow’ factor

18

TOPIC OVERVIEW

The digital consumer in the 5G era
Why it matters
Consumer intent to upgrade
to 5G increases• Encouraging signs for adoption• Consumer experience with 5G networks• Consumer willingness to pay more for 5G

Bundling gains with
5G consumers• 5G consumer interest in bundling non-connectivity offerings• Customer segmentation• Seamless consumer experience

5G-compatible smartphones
increase in popularity• Consumer interest in 5G smartphones• Leading features when choosing smartphones• The smartphone as a platform

Digital entertainment –a key 5G consumer use case

• Gaming over 5G: consumer appeal and engagement• Video over 5G: consumer appeal and engagement• Video streaming on Wi-Fi versus 5G

5G enabling the metaverse
and XR: early stages• 5G’s impact on metaverse/XR• VR device adoption among consumers• Content development

Regional perspective

Considerations aheadThe digital consumer in the 5G era

WHY THE DIGITAL CONSUMER MATTERS IN 2023

Understanding the digitalconsumer is key to thesuccess of 5G
5G monetisation

Non-core revenue stream(aided by 5G )Cutting-edge applications

The monetisation imperativegrows: As 5G adoption grows
from 1 billion to 1.5 billion
connections over the next year,
the monetisation imperative will
escalate. To that end, it will be
important to assess what makes
the new wave of 5G consumers
different to early adopters, and theimpact of increased 5G adoption
on data traffic and ARPU levels.

Opportunities beyond 5G
connectivity: For consumers, thelink between connectivity, mobile
devices and services has neverbeen stronger. Understanding
5G consumers’ interest in adding
digital services, digital content
and non-smartphone device plans
to mobile contracts can help
operators’ efforts around non-core
revenue.

Identifying metaverse and XR
opportunities: The metaverse andextended reality (XR) promise
to be the next big opportunity.
Operators will need to understandconsumers’ perceptions andexpectations of these emerging
technologies in order to drive a‘wow’ factor.

Innovative tariff structures:
Digital consumer insights will help
operators devise innovative 5G
tariffs beyond the inaugural tariffs
focussed on data consumption.

Customer segmentation is key:
Insights (e.g. by age, income andlocation) will be key to driving
uptake of bundled offerings,
including delivering a personalised
experience.

Aiding XR device adoption:
Based on 5G consumers’ interest,
operators can consider offering
5G plans that bundle XR devices,
especially those with eSIM
capability, linking them to a main
smartphone subscription.

19

20

The digital consumer in the 5G era

Consumer intent to upgrade to 5G increases
5G consumer adoption goes global• According to GSMA Intelligence survey data, around 58%
of smartphone owners are already using 5G or intend to
upgrade to 5G – an increase of 9 pp year-on-year. Acrossall countries, consumer intent to upgrade to 5G is higher
than average among the 18–24 and 25–34 age groups –unsurprising given that younger adults generally lead in the
adoption of new technologies.
• In 2023, 5G mobile services will be launched in 30 new
markets. Many of these will be developing markets across
Africa and Asia.
• In an encouraging sign for 5G adoption, according to thesurvey, more than half the early 5G consumers were happy
with their 5G network experience so far, with faster speeds
the top reason. Consumers intending to upgrade to 5G
were also willing to pay extra for their mobile subscription
compared to what they pay for their current 4G subscription.
• However, speeds are not what will ultimately sustain pricing
premiums (and therefore revenue growth). A ‘wow’ factor
is required to attract new customers or incentivise existingones towards higher spend. XR is a candidate here, with thepotential to usher in a new age of (immersive) consumer
experiences that benefit from 5G’s advanced capabilities inareas such as speed, latency and capacity.
Survey conducted in November 2021 covering Brazil, China, France, Germany, India, Italy, Japan, South Korea, UK
and US. India not included here, as commercial 5G services were not available at the time of survey.

Consumer intent to upgrade to 5G is higher among
younger adults
Proportion of smartphone users who are already using 5G or intend to upgrade to 5G(aggregate by age group)

71%

18–24

69%

25–34

64%

35–44

57%

45–54

54%

55–64

65+

39%
Average 58%
Source GSMA Intelligence Consumers in Focus Survey 2021

21

The digital consumer in the 5G era

Bundling gains with 5G consumers

5G increases interest but customer segmentation is key• A seamless consumer experience will also be key
to supporting bundle adoption. This means quick,hassle-free service activation, easy-to-accessand prompt service support, and clear andtransparent billing.
• The prevalent business model for offering
bundles involves a commercial partnership with aservice/content provider, though some operators
have launched their own non-connectivity
services to strengthen revenue diversification.
• 5G FWA provides operators with new bundling
opportunities by opening up the homebroadband market to them.

Percentage of contract mobile subscribers who have added or are interested in adding the following totheir contract subscriptions (aggregate)
Difference versus
4G consumers (pp)5G consumers

62%

CONTENT

Video streaming

SERVICES• Customer segmentation is crucial to driving
higher uptake of 5G bundles. Gaming is a notable
example. While 36% of all 5G users are interested
in gaming, the 18–24 and 25–34 age groups score60% and 52% respectively.

5G consumers find content and services more appealing forbundling than 4G consumers

56%

Music streaming

+14
+11

Live sports

36%

+11

Gaming

36%

+13

55%

Cloud storage

57%

Digital security

55%

Wearables
DEVICES• 5G consumers are more interested than 4G
consumers in adding services and content totheir contracts. The average score for 5G users
across nine categories of add-on was 50%,
compared to 38% for 4G users.

+9
+10

+14

Smart home

44%

+10

Entertainment

45%

+14

Base: smartphone users who are most frequently
connected to 5G or 4G networks

Source GSMA Intelligence Consumers in Focus Survey 2021

22

The digital consumer in the 5G era

5G-compatible smartphones grow in popularity

The importance of 5G in purchasing criteria continues to grow
• The importance of 5G (ability to connect to 5G)
in smartphone purchasing criteria has increasedslightly year on year, with 70% of consumers
indicating in 2022 that it will be an importantfeature when choosing their next phone (rising to
78% among high-spend mobile users).
• As 5G smartphones typically provide the mostrecent battery and camera innovation (some of
the most important purchasing criteria) and better
experience for digital services, the importance of
5G will continue to grow. This is reflected in the
expanding range of handsets available.
• While smartphone hardware innovation
is important, the value for consumers will
increasingly lie in two areas beyond thesmartphone itself:– smartphones as a central control platform forother devices– smartphones as the platform most frequently
used for digital entertainment and services.
• The further anticipated price declines in 5G
smartphones (Apple being a possible exception)
should help with take-up.

In tune with customer demand, the majority of new
smartphones now support 5G
100%
90%
80%

73%

70%
60%
50%
40%

82
74

30%
60

55
20%

42

10%
5
0%

9

14

Q1
Q2
Q3
Q4
2019
Number of 5G models launched

48

54

61

65

21
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2020
2021
2022
5G models as a percentage of total smartphones launched in quarter
Source GSMA Intelligence23

The digital consumer in the 5G era

Digital entertainment – a key 5G consumer use caseVideo and gaming are the leading forms of entertainment• Digital entertainment is a key 5G
consumer use case, with greater
appeal among 5G consumers(smartphone users who havealready upgraded to 5G or intend to
do so) than consumers without 5G.
• 5G consumers are also moreengaged with video and gaming,with 67%/46% and 53%/25%
watching free/paid-for video andplaying free/paid-for games atleast once per week, respectively.
Operators have two B2C routes (thefree/paid-for models) to benefit
from 5G consumer interest in digitalentertainment.
• 5G consumers also tend to use moremobile connectivity (i.e. less Wi-Fi)
than their 4G counterparts when
watching video, which could havepositive implications for 5G mobile
ARPU.

5G consumers find video and gaming more appealing as 5G use cases…
Percentage of smartphone users who find the following 5G use cases or 5G-enhanced services
extremely or very appealing (aggregate)
Base: smartphone users who are most frequently connected to 5G or 4G networks

Ultra-high-definition movies and TV
Ultra-high-definition movies and TV

55%
55%

18%
18%
Enhanced mobile gaming
Enhanced mobile gaming

42%
42%

11%
11%
Among those who have already upgraded to 5G or intend to upgrade to 5GAmong those
those who
who haveare unsure
orupgraded
not intending
upgradeAmong
already
to 5Gtoor
intend to upgrade to 5GAmong those who are unsure or not intending to upgrade…and engage more with them
Percentage-point increase in share of 5G consumers who consume digital entertainment content on their smartphones
at least once per week, compared to 4G consumers
Free video
Free video

Free games+5+5

Free games

Paid-for video+5+5

Paid-for video

Paid-for games+9

Paid-for games
+6

+9

+6

Source GSMA Intelligence Consumers in Focus Survey 2021

24

The digital consumer in the 5G era

5G enabling the metaverse and XR: early stages
Mobile 5G will serve as the foundation• 5G and associated network innovations such as edge andslicing provide the high-capacity, low-latency, high-reliability,
customisable services that XR and a fully fledged metaverse
need to succeed. Mobile 5G (and future network generations)will serve as a key foundation for the metaverse and XR,
underpinning consumer engagement and helping content
and app ecosystems to flourish.
• However, consumer XR device adoption (mainly VR headsets)continues to languish. According to the GSMA Intelligence
Consumers in Focus Survey, only 6% of households (on average
globally) own a VR headset. The arrival of the metaverse has
rekindled hopes for wider adoption – but, in order to realise
this, XR content development will need to keep pace.

• We expect a flurry of metaverse/XR content developments in
2023, with gaming, video and music at the forefront. Protometaverses such as Roblox and Fortnite will continue with
content innovation, while new metaverse platform owners willprioritise content availability.
• User-generated content will be another promising area forcontent supply. Partnerships (e.g. with media studios) will also
be key to boosting content libraries.

Ownership of VR headsets is still limited

9%

Proportion of households that own a VR headset

8%

6%

6%

6%

Germany

FranceUK

7%

7%Brazil

Italy

3%

Japan

South Korea

US

Source GSMA Intelligence Consumers in Focus Survey 2021

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The digital consumer in the 5G era

Regional perspective
US

China

Southeast
Asia• Consumers in the US show
higher intent to upgrade to 5G
than those in other developed
markets such as Germany,
Japan and the UK.

• In the Consumers in Focus
Survey, 5G consumers in China
were the most interested inbundling non-connectivity
offerings with their mobile
contracts. This relatively higher
interest was also seen when it
came to 5G use cases.

• 5G smartphones are positioned
across a range of pricing
options, aiding 5G adoption.
Original device manufacturers(ODMs) can further help
adoption by bringing greater
5G smartphone choice at thevalue end.

• Consumers in China are among
the most satisfied with their
5G network experience andmost used to service bundlingthrough their experience ofsuper-apps such as WeChat.

• The ODM model is gaining
traction in China and other
Far East economies such as
Vietnam, where manufacturing
scale and chipset supply haveenabled a lower cost structure.
This provides diversification
to operators aiming to offer awider range.

• Various factors explain this,including the extent of 5G
network availability, the levelof operator commercial/marketing push, andconsumers’ willingness tomigrate to new technologies(European consumers tend
to do so at a slower pace – atrend seen with 4G).

26

The digital consumer in the 5G era

27

Considerations for the year ahead
Can operators better segment
5G tariff structures?

Can 5G interest move to services,
not just speeds?

• To maximise 5G's monetisation
potential, operators will need to design
innovative 5G tariffs to target niche
customer segments. Examples include
the speed-tiered 5G tariffs employedby operators such as Vodafone Spain.

• Partnerships, customer segmentation
and a seamless consumer experience(including self-service) will be crucial
for operators to successfully establish
5G bundling. For converged operators,
5G bundling will sync with their ‘n-play’efforts.

Can the metaverse solve theproverbial ‘chicken and egg’problem?
• As well as contributing through 5G
technology developments, operators
will aid progress on the content front.
Examples here include SK Telecom's
content development efforts for
its Ifland metaverse platform, andoperators’ participation in the Niantic
Planet-Scale AR Alliance.

28

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023
The digital consumer in the 5G era

The mobile edge and network slicing
API monetisation
Satellite and non-terrestrial networks
The enterprise verticals story
Private wireless networks
The three Ss
ESG and the drive to net zero

Mobile network
automation

Embracing improved
efficiency andexperience

29

TOPIC OVERVIEW

Mobile network automation
Why it matters

The impact of 5G• 5G as a trigger for new networks and services• Increasing service expectations and demands• 5G in a multi-network world

Automation tackling complexity• Increasingly complex networks• Increasingly complex services• Increasingly complex supplier ecosystems

The three Ss• Sustainability: a traditional automation focus• Security: automating risk mitigation• Spectrum: sharing, diversity and quality

Operators: automation’s
worst enemy?

• Internal coordination and ownership• Access to data and resources• Employee bias against automation tools

Regional perspective

Considerations aheadMobile network automation

WHY MOBILE NETWORK AUTOMATION MATTERS IN 2023

Automation is critical for operators
to execute on their business goals
Mainstream 5G

Opex versus capex

Networks supporting services

Moving past 1 billion connections:
The next wave of 5G takes the tech
to new users and markets, adding
service and network complexity,
which automation can mitigate.

Saving money in a downturn:
Faced with global economic
headwinds, operators will look tofocus on containing spend.

Saving money/making money:
Cost-cutting priorities aside, newrevenues and user experience
remain the top strategic
imperatives for operators.

2023 and the year of 5G SA: As
5G SA scales (adding new network
capabilities for new services),
network and service complexity
will grow too.

Acknowledging cost centres:
Capex may grab more headlines,
but opex is a much bigger costcentre. Operators recognise
automation as the top opex
reduction technology.

5G and the three Ss: The top
network priorities – sustainability,
security and spectrum – will
become more important as 5G
evolves, with automation promisinga supporting role.

Automation, expertise and skills:
The role of automation as a tool toaugment human skills and counter
expertise gaps is well known. As
service and network complexity
rise, this will only escalate.

Automation, enterprises, APIs:
New service creation at scale –to diverse enterprise verticals,
and through opening network
capabilities to developers via open
APIs – plays to automation’s value.
Service quality: Monetising
services will require quality andscaled assurance – areas where
automation can help.

30

Mobile network automation

31

The impact of 5G

New networks, new services and the need to automate• As 5G is deployed, and users
increasingly rely on it, user loadand quality expectations dominate
network strategies.
• User scale requires end-to-end
thinking, from the network/service
planning and deployment phaseto maintenance and operations.
Introducing automation into eachis critical to ensure 5G scales in atimely, reliable and cost-effective
manner.
• Delivering on quality expectations
requires a focus on the basics:
planning, deployment andoperations. In the 5G era, it also
requires a focus on reliability alongwith coverage management, QoS
detection, and threat mitigation
support – all of which depend on
automation for efficient delivery.

User load and quality expectations are driving operators' network plans
What are the top customer demands currently driving your network transformation strategy? Select top two.
Increased customer expectations of network stability and resilience61%
Increased number of users on the network
50%
Increasingly variable traffic patterns
26%
Increased security threats
25%
Increased number of IoT devices
24%
Increased bandwidth
14%

Source GSMA Intelligence Operators in Focus: Network Transformation Survey 2022

32

Mobile network automation

Automation tackling complexity

Networks, services and ecosystems are getting complicated• Automation is often positioned as atool for dealing with complexity; thisis reflected in the way operators see
service – and especially network –automation.

Complexity tops the drivers of automation• From managing multiple technology
generations and multiple spectrum
bands, to implementing newcore architectures that embrace
cloud, edge and virtualisation, thecomplexity operators must deal withtoday is clear.

Integration of cloud technologies• 5G standalone will bring new service
innovation and complexity withstrict performance requirements,
driving a need for service
automation. At the same time, as
networks increasingly decouple
software from hardware, operations
and maintenance complexity will
increase, making automation anecessity.

What are the primary drivers of automation (support deployment, operations) across your network assets?

What are the primary drivers of automation (support, rollout, operations) supporting your service offerings and delivery?
Increasing service complexity
New customer segments

Customer demands and service expectations
Increasing network complexity
Added security demands
Lack of internal skills

Increasing service complexity
Customer demands and service expectations
Increasing network complexity
Integration of cloud technologies
Diversity of spectrum resources
Added energy efficiency demands
Lack of internal skills
Added security demands

0%
Rank #1

10%
Rank #2

20%

30%

40%

50%

60%

Rank #3
Source GSMA Intelligence33

Mobile network automation

The three Ss

Automation supports sustainability, security and spectrum• Sustainability and security are top
network priorities, with spectrum (aperennial priority) seeing an elevatedfocus in 2023 against the backdropof World Radiocommunication
Conference 2023 (WRC-23).
• Sustainability and security are
not new concerns. Suppliers
have therefore prepared plentyof automation support: examples
include network sleep, energyefficient user management, threat
mitigation and detection, andfeature rollout support to guard
against threats.
• The intersection of spectrum andnetworks represents a complex
network dynamic with plentyof room for automated support,
including multi-band operations,antenna and cell parameter
optimisation and spectrum-aware
radio planning – all alongside
traditional self-optimising network(SON) functions.

Sustainability and security are high network transformation priorities
for operators
How important are the following priorities as a part of your network transformation strategy?
Extremely+ Veryimportant

Sustainability / energy efficiency

84%

57%

27%

10%

5%

End-user security (e.g. devices, services)

72%

34%

38%

25%

3%

Network security

69%

33%

36%

21%

10%

Use of cloud and IT technologies in network

66%

28%

38%

29%

5%

Automation of business functions and network operations

62%

19%

43%

23%

15%

Use of open networking technologies (incl. open RAN)

59%

40%

19%

22%

19%

Regulatory compliance

59%

22%

37%

25%

16%

39%

31%

13% 1%

35%

37%

10%

Supply chain diversity (introducing new vendors)

55%

16%
Re-skilling / up-skilling of staff

53%

18%
Competition from public cloud providers

48%

14%

Extremely important

34%
Very important

Moderately important

25%
Slightly important

25%

1%

Not at all important

Source GSMA Intelligence Operators in Focus: Network Transformation Survey 2022

34

Mobile network automation

Operators: automation’s worst enemy?

Processes, bias, project ownership – internal obstacles abound• Deployment of automation by
operators can be held back by avariety of dynamics, from an unclear
return on investment to a lack offaith in the automation technologies
and suppliers.

Internal issues dominate obstacles to service and network automation,according to operators• Internal issues dominate.
Lack of automation expertise,
automation project ownershipand administration, as well as abias against automated processes,
represent two of the top threeobstacles to deploying automation.
• While return on investment (RoI)
concerns could temper interest
in automation, the fact that mostbarriers are internal issues signalsthat operators are in control ofwhether or not automation moves
forward, with C-suite involvement
likely key to driving it forward.

NO.1 OBSTACLE

NO.2 OBSTACLE

NO.3 OBSTACLE

Network automation:
RAN

Uncertain RoI

Employee bias

Unclear internalownership

Network automation:
core/edge

Unclear internalownership

Uncertain RoIInternal expertise

Network automation:transport

Unclear internalownership

Technology maturity

Uncertain RoI

Service automation:
rollout

Internal expertise

Uncertain RoI

Unclear internalownership

Service automation:
assurance

Internal expertise

Uncertain RoI

Unclear internalownership

Source GSMA IntelligenceHuawei Autonomous Driving NetworkIntelligent RAN & Core Network Unleash New Potential of Network Autonomy
IntelligentRAN

iService
Agile provisioning

The continuous evolution of 5G brings cross-generational service experience and has
created many new types of services, but also brings three top challenges which calls fora more intelligent wireless network:• Increasing complexity of wireless networks• 100 times increased traffic versus slight increase energy consumption requirement

IntelligentRAN
Native Intelligence,
Intent-based Open• Diversified service SLA requirements require more agile service operation
Huawei IntelligentRAN solutions include iFaultCare, iPowerStar, iHashBAND, and
5GtoX Suite, which empowers operators to achieve intelligent service operations,
intelligent network optimization, intelligent and simplified O&M, and speeding up theevolution to wireless autonomous networks.

iOperation

iNetwork

Optimal experience
Energy efficiency

Zero Faults

IntelligentCore
Huawei ADN solution addresses all-scenario challenges of 5G core network among
network planning, construction, maintenance and optimization, delivers self-X network
capabilities and zero-X customer experience.
• Agile delivery enables cloud-native E2E secure, efficient, and flexible delivery
experience based on Intent-driven technologies

Agile
Delivery

Optimization
Maintenance• High reliability transfers network O&M from passive response to proactive risk
prevention and control• Optimized Experience Delivery optimal service quality, facilitate 5G success.

High
Reliability

Planning &Construction

Optimized
Experience

Core Network
Evolution Phases

36

Mobile network automation

Regional perspective• While Latin American operators
see automation as important
to 5G, their views are clearly
subdued compared to their
MEA counterparts. 2023 will
reveal how these views evolve.

How important are network and service deployment/operations automation to your success in 5G?
Service deployment and operations
LATIN AMERICA• Operators in the Middle East
and Africa (MEA) see thislink – potentially reflecting
Middle East operators being
5G leaders, planning forcomplex new 5G services,and recognising the need forautomation as a result.

Automation views among operators in Latin America subdued versus
Middle East and Africa

50%

40%

10%

Network deployment and operations
60%

30%

10%

Service deployment and operations
MIDDLE EAST & AFRICA• The role automation plays inbringing 5G to reality is diverse,
including 5G deployment,
the management of different
network generations andspectrum bands, and therollout and management of
new 5G services at scale.

40%

50%

10%

Network deployment and operations30%

5 – Extremely important

20%

4

3

2

50%

1 – Not important at all
Source GSMA IntelligenceMobile network automation

37

Considerations for the year ahead
How will 5G-Advanced and 6G
drive the automation discussion
forward?
• Complex service support is driving
operator views on automation alongwith ecosystem discussions around
5G-Advanced and 6G. Will that
continue in 2023?
• A core tenet of 6G R&D has been
the vision of an AI-native RAN,
with parameters tweaked in realtime, essentially automating RAN
optimisation on an ongoing basis.
• Early discussion of new mobile
technology generations is more likely
to focus on technical innovation, withless focus on rollout and operation
support such as automation.

Which 2023 use cases andservice trends have theopportunity to ‘move the needle’on automation?

Intelligence versus automation:
where will operators findsynergies across the core and
RAN?

• The next phase of 5G will be marked
by new users in new markets. Manyof these are less mature, requiringcost-efficient network and service
operations.

• Beyond automating processes, useof AI and ML in network operations
promises ongoing efficiencies but
could be held up if only seen as part ofautomation exercises.

• Delivering the low-latency connections
that the metaverse requires, at scale,cannot be done manually. But will
network or ecosystem considerations
garner more attention?

• 2023 promises massive RAN
investment, likely driving a focus on
automation. RAN intelligence will also
be key to continuous quality assurance
and improvement.

• Against the backdrop of high-profile
network outages in 2022, service
performance and experience are top
drivers across RAN, core, network andservice automation.

• Outside the RAN, intelligent core
operations may be more important as
operators optimise and virtualise theirservices, while embracing cloud and
edge.

38

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023
The digital consumer in the 5G era
Mobile network automation

API monetisation
Satellite and non-terrestrial networks
The enterprise verticals story
Private wireless networks
The three Ss
ESG and the drive to net zero

The mobile edge
and network slicing
Growing momentum
behind long-term
5G promises

39

TOPIC OVERVIEW

The mobile edge and network slicing
Why it matters
Scaling private
wireless networks• Unique versus mass-market demands• Unique versus mass-market solutions• Foundational edge compute and slices

The advancing cloud• Cloud moves in the mobile network• Multi-cloud beyond distributed cloud• Friends, enemies and pragmatism

Making the consumer case

• The story to date: B2B• Opportunities ahead: B2C• The API play

Getting edge and slicing
off the ground• No scale without automation• Role of operators in slicing• Misconceptions at the edge

Making operators careabout slicing• Reminder: it’s all about revenue generation• How much is realtime charging needed?
• Slicing, edge and service inventories

Regional perspective

Considerations aheadThe mobile edge and network slicing

WHY MOBILE EDGE AND NETWORK SLICING MATTER IN 2023

Monetising 5G cannot bebased on connectivity alone
2023: the year of standalone

Launches drive launches

Security, security, security

Standalone (SA) plans – for real
this time: After many years ofplanned SA momentum, operator
launches and commitmentssuggest 2023 will see deployments
scale.

Value of momentum: As trials
become commercial services, thevalue of a technology is madevisible, supporting momentum – if
only due to competitive pressures.

End-user and network priorities:
After sustainability, the top
network transformation techpriorities for 2023 are end-user
security and network security.

Cloud, edge and private wireless:Private wireless networks are on
an upward trend – partly driven
by cloud players – with edge
computing a core component.

Sovereignty and control: For users
with strict data security demands,edge nodes allow data to remain
on-premises but represent
components that need to be
secured themselves.

SA tech benefits: While not criticalfor edge services, SA does enableslicing more flexibly than possible
with non-standalone (NSA),
making it the second-ranked
benefit of SA among operators.
SA business benefits: Improved
massive IoT, slicing and low-latency
capabilities all equate to bettersupport for enterprise verticals andoperator revenue expansion.

Below-the-radar slicing: Slicing
has been slowing ramping up aspart of private wireless (particularly
in China) and in a number of highprofile trials in 2022, setting up
2023 for further growth.

Slicing separation and security:
Functionally discrete slices secure
traffic, but the complex processes
and infrastructure required to do
so will need to be secured too.

40

41

The mobile edge and network slicing

Scaling private wireless networks

Slicing and edge as core components of customised networks• 5G promises to flexibly serve consumer
and enterprise customers. However,specific vertical requirements may
be best served by custom networkbuilds, as demonstrated by the myriad
announced private network launches.

• Vertical-specific demand speaks tothe private wireless network value
proposition, and a key challenge.
Bespoke requirements imply a lack oftemplates for creating or selling private
networks, adding to costs and diverging
from the standardised solutions that
operators prefer.

• Edge compute and slicing represent
foundational technologies than canbe built on in a private network. For
example, edge nodes can be deployedin an enterprise, giving operators acommon anchor from which to deliver
services. Slicing, in turn, supports
differentiation of services within acontrolled network. Both represent
assets that can be deployed in a
repeatable manner, regardless ofvertical requirements.

Operators are already deploying 5G edge computing across different use cases

Content
cachingOn-location TV
production andbroadcastGaming ande-sports

HealthwearablesSmartcampusLocation-based
advertising

Security, safety& surveillance

Real-time
monitoring ofenvironmental data

Immersive
in-store
environment

Remotediagnostics
in healthcare

Connected
hospitals

Real-timecustomised
retailOperational
intelligence insmart factories

Live entertainment/ smart stadia

Energysmart meters

Immersive
tourism

On-site industrial
robotsSmart parking

Remoteoperations insmart ports

Connected
carTraffic
management

Source GSMA Intelligence

The mobile edge and network slicing

42

The advancing cloud

Sliced and distributed, cloud’s role continues to evolve• Edge networking garnered attention
with the advent of 5G, with various
players involved. Cloud players, inparticular, have been pushing theirassets close to the network edge,
leveraging developer ecosystems.
• Delivering to strict performancerequirements will require network
slices to be end to end. As
operator and enterprise workloads
increasingly integrate cloud andedge assets, network slices will needto traverse them.
• The question of whether telco or
cloud players will dominate the edge
(or slicing) is irrelevant; the two will
increasingly partner, serving diverseroles across diverse workloads.
For latency-sensitive use cases, anoperator’s ability to site edge nodes
in the access network will remain anadvantage.

The position of cloud providers in edge and slicing architectures
AWS example

AWS cloud-to-edge continuum
DELIVERING AWS WHERE YOU NEED IT

On premises

AWS regionsAWS Outposts
AWS Storage Gateway

Iot / robotics
AWS IoT Greengrass
AWS RoboMaker

Regions

Metro centers
AWS local zones

Rugged, Mobile
DDIL* edgeAWS Snowball edgeAWS Snowcone

5G networks

AWS Wavelength

For most use cases

For low latency, data residency

For local compute, rugged, DDIL* edge

© 2022, Amazon Web Services, Inc. or its aﬃliates. All rights reserved.

Source Amazon Web Services

43

The mobile edge and network slicing

Making the consumer caseIs there more to slicing and edge than enterprise use cases?

• Myriad consumer use cases could
be enabled by slicing and edge
compute, including immersive
content (metaverse), low-latency
gaming and differentiated quality
packages. All can be monetised.
• Operators believe consumer-focusedslicing and edge applications cangenerate a return on a par withenterprise applications. This viewaligns with the greater B2C businesstraction operators enjoy. However,industry narratives need to reflect
the view to ensure the B2C value is
not overlooked in practice.

Slicing and edge can enable consumer as well as enterprise use cases
As you evolve your network to better serve enterprises and consumers, how do you think about edge computing andnetwork slicing?
Ease of implementation: top 3• Slicing and edge compute are mostoften associated with B2B use cases;
it is easier to link the benefits theybring to enterprise requirements,
and it is easier to justify investments
when supporting new (B2B)
revenues.

80%
Consumer Edge
B2B Slicing

70%

B2B Edge60%
Consumer Slicing

50%
20%

25%

30%

35%

40%

RoI: top 3
Source GSMA Intelligence Operators in Focus: Network Transformation Survey 2022

44

The mobile edge and network slicing

Getting edge and slicing off the ground
The only way is up• Edge compute and network slicing
are not new technologies; both havebeen part of mobile network andservice innovation since before 5G.
• Despite a history of solution
development, deployment of edge
and slicing is still in its infancy. Less
than a quarter of operators claim
commercial edge solutions, witharound 10% having a commercial
slicing offer (mostly not at scale).
• Internal challenges (including
unclear project ownership andskills gaps) represent the biggest
deployment hurdle, while an unclear
return on investment is the single
biggest issue for both edge andslicing. Unless both see progress in
2023, the role of operators in driving
them forward may be limited,leaving an opportunity for cloudproviders and others.

Edge and slicing deployment is still in its infancy among operators
Where are you in the process of adopting the following technologies?
Commercial
deployment
total

36%

Automation – service
8%

28%

39%

24%

1%

Virtual RAN

30%

6%

24%

28%

27%

15%

Function virtualisation / cloudification

29%

4%

25%

41%

30%

Use of public cloud for network functions

27%

7%

20%

41%

30%

2%

42%

31%

1%

51%

24%

3%

Automation – network

26%

7%

19%

Edge networking

22%

7%

15%

Open RAN

22%

6%

16%

39%

3%

36%

Network slicing

12%

2% 10%

Commercial deployment: at scale

24%

45%

Commercial deployment: initial

Testing phase

19%
Planning phase

No plans

Source GSMA Intelligence Operators in Focus: Network Transformation Survey 2022

45

The mobile edge and network slicing

Making operators care about slicing

Deployments lead to learning, which leads to more deployment• Despite B2C opportunities, verticalspecific enterprise requirements
should be a major driver of network
slicing deployments. However,operators ranked slicing low as atechnology for driving B2B success.

Operators rank slicing low for enterprise success
5G capability / technology priority ranking (extremely or very important to success of enterprise offerings)

84%• Lack of operator interest in slicing
explains the limited progress with
deployments. It also feeds into
deployment obstacles, fuelling
return on investment concerns andmaking it more difficult to solveinternal challenges.
• Interest in edge compute (supported
by cloud players and private
networks) ensures its deployment.
However, a lack of slicing
momentum robs operators of amessaging opportunity to potential
customers, along with importantlearnings on how to best apply andmonetise it. Meanwhile, operatorsthat are progressing with slicing (asin China) could gain a competitive
advantage.

86%

72%
63%

65%

67%

29%

Networkslicing

Privatewireless
networks

Open networks(e.g. open RAN)

Multi-access
5G IoTedge computing (URLLC, mMTC,(MEC)
RedCap, Sidelink)

5G FWA

Standalone 5G

Source GSMA Intelligence Operators in Focus: Network Transformation Survey 2022

Mobile VPN: On-Demand Network Allows Access Anytime and Anywhere
Internet

Traditional VPN

Detoured throughthe Internet

VPN gateway

UPF/PGW-U

UPF/PGW-U

Operator's internal transport network

Intranet
On-premises
MEC

Direct UE-intranet connection

10× rate increase
4/5G

5G SA

4G/NSA AccessMulti-Campus• Easy access, better experience• Seamless network switchover• Steering traffic through optimal route• 5G ULCL• 4G ULCL• Dynamic ULCL

• 10× download speed• 10× Population coverage• Network efficiency improved by 50%

Find more: https://www.gsma.com/5GHub/vpn

The mobile edge and network slicing

47

Regional perspective• With myriad announced cloudpartnerships, it is not surprisingthat North American operators
lead edge deployments. Morenotable are slicing and edgeplans in the Middle East & Africa,
in line with a strong Middle East
B2B 5G focus.
• North American operators arelikely under-representing theirslicing progress. Nonetheless,they are clearly behind otherregions and risk losing out onearly learnings.
• Asia Pacific and European
operators might claim lesscommercial momentum withedge and slicing, but this is partly
a function of the larger numberof operators in those regions.
Scaled slicing and edge offers
in China and larger European
countries position them well.

Slicing and edge computing commercial deployments:
North America versus Middle East & Africa
Percentage of operators
40%
35%
30%
25%
20%
15%
10%
5%
0%

North America
network slicing

Commercial deployment: at scale

North Americaedge computing

Middle East & Africa
network slicing

Middle East & Africaedge computing

Commercial deployment: initial
Source GSMA Intelligence Operators in Focus: Network Transformation Survey 2022

The mobile edge and network slicing

48

Considerations for the year ahead
What specific problems need
to be solved to scale edge andslicing? Globally or in specificregions?

What network innovations can we
expect in 2023 to support edge
and slicing?

Are edge computing and network
slicing truly critical to the successof 5G?

• As 5G scales uniquely across different
markets, the greatest driver will be
the introduction of new, innovative
services – B2B and B2C.

• New deployments of 5G SA will clearlysimplify slicing rollouts. They should
also drive more traction in verticalmarkets, which will benefit edge andslicing alike.

• Edge and slicing are both relatively
access agnostic; edge can be appliedin 4G, 5G or even 3G networks, while
4G networks can be sliced alongside
5G networks.

• From a technology perspective,
broader slicing support in mobile
devices is key. So too is the ability to
deploy custom slices in a repeatable,
efficient manner.

• If the slicing problem to be solved issimplification of slice creation anddeployment, automation of end-to-end
slice process will be a focus for mostsolution providers.

• The first wave of 5G momentum – upthrough 1 billion connections at theend of 2022 – took place without
meaningful slicing, and with edge in ascale-up phase.

• Edge momentum has been
established. As it matures, sorting out
the interaction between diverse nodes
and workloads (located in different
places) will become a larger issue.

• The transition from virtualisation to
cloud-native functions is still underway,
driven (in part) by 5G. Further progress
will feed into slicing and edge.

• As 5G moves into new markets andexisting deployments evolve, basic
connectivity and eMBB services could
carry it forward but would not tap its
full potential.

49

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023
The digital consumer in the 5G era
Mobile network automation
The mobile edge and network slicing

Satellite and non-terrestrial networks
The enterprise verticals story
Private wireless networks
The three Ss
ESG and the drive to net zero

API monetisation
Aiming for more than
the sum of its parts

50

TOPIC OVERVIEW

API monetisation
Why it matters

Unleashing network capabilities• 5G value beyond faster speeds• Unique versus mass-market solutions• Foundational edge compute and slices

Capabilities that matter• 5G brings many new capabilities• Which will matter to developers?
• Which can be more easily exposed?

Telco cloud or telco + cloud?

• The story to date: B2B• Opportunities ahead: B2C• The API play

Monetising means charging• Reminder: it’s all about revenue generation• How much is realtime charging needed?
• Slicing, edge and service inventories• Security as a top operator concern

APIs versus open versus security • The role of ‘open’ in scaling API usage• Is ‘open’ necessarily less secure?

Regional perspective

Considerations aheadAPI monetisation

WHY API MONETISATION MATTERS IN 2023

Monetising 5G cannot bebased on connectivity alone
5G revenue stagnation

Second wave of 5G

Ecosystem paves the way

Revenue aspirations: Beyond
support for ever-increasing data
demand and new mobile data use
cases, new revenue generation wasa foundational driver for 5G.

5G’s next launch phase: Following
impressive early 5G uptake, 2023
marks the start of new momentum
in high-growth markets including
India and Sub-Saharan Africa.

Past as present: Fully executing
on the value of mobile networks
by tapping into the developer
community is not a new concept.

Revenue realities: Examples of
5G being used to grow revenues
have been limited, with 5G FWA astandout against ability to charge
more for 5G mobile.

5G’s next tech and service phase:
Beyond new market launches,
deployment of standalone 5G
should pick up, along with arenewed push into B2B services.

New signs: 2022 saw new interest
such as Ericsson’s aims around
Vonage’s developer ecosystem;
Dish Network courting developers;
and the formation of CAMARA(Telco Global API Alliance).

Revenue potential: Providing
developers with access to network
capabilities via open APIs could
unleash 5G capabilities but alsodeliver an important new revenue
stream for 5G network builders.

5G capabilities and users: Service
and 5G technology expansion set
the stage for new capabilities andusers who want them. Network
APIs open for developers to accesswould support that.

Follow the leader: Building on
early momentum and messaging,along with 5G revenue pressures,the state of API monetisation
ecosystem support should become
clearer as the year progresses.

51

52

API monetisation

Unleashing network capabilities

Data Sheet

The critical value of 5G is the core API monetisation rationale• While high-speed connectivity ispart of 5G’s value proposition, thiswas always one piece of the story;
delivering new capabilities – such as
lower latency and higher reliability– was a central 5G tenet frominception.
• New 5G network capabilities were
aimed at expanding the base ofmobile use cases – generating newrevenue streams by meeting specificcustomer demand and monetising
5G network investments in theprocess.
• Allowing developers to directly
tap into network capabilities via
exposed APIs (which connect into
network functions) promises toscale the use of these capabilities(removing the need to connect
directly with individual developers
or applications) and develop theirmonetisation in the process.

The Amdocs 5G NEF allows secure network exposure towards ecosystems of external as well as internal
development teams meaning that service launch can be controllable, instant and automatic. Rather thanbeing reconciled (again) to playing the role of a basic transport network, 5G with the value-add of NEF isable to become an accessible, programmable and integral part of resolving Enterprise business requirements,
partner service innovation and cloud player catalogs.

Scaling use of network capabilities via exposed APIs: Amdocs NEF example

Integrate & Empower
the language of business

SP
ExposureService APIs
The language of developers
ManageConnection

Service Provider
Internal AccessSelectSize
SelectEdge

Enterprise
Direct AccessDefineQoSDefineCharging

Ecosystem
Partner
AccessCloud
Hyperscaler
AccessHandleData Flows

Network APIs
The language of 3GPP

API
API
API
API

PCF

SMF

CHF

NWDAF

NEF

API

etc.

API

*API

*Other and non-standard APIs

Figure 2: Key Role of Amdocs NEF: Internal as Well as External Exposure

Source Amdocs Network Exposure Function (NEF) Data Sheet

53

API monetisation

Capabilities that matter

Where to focus among so many network capabilities?
• With or without 5G, there are lots of
network capabilities that might be
exposed to developers, hyperscalers,internal service provider teams, ordirectly to enterprises. These include
location, quality of service (QoS),
carrier billing and device status.
• While the universe of network
capabilities that could be exposed
is near-infinite, initial efforts toscale API monetisation will need tofocus on a select few. Operators willneed to learn where demand lies
and the technical realities involved.
Developers will need to learn how toleverage the APIs.
• Decisions on what capabilities
to expose will ultimately rely on
how broadly useful they are, howwell they can be monetised, anduniversal versus unique 5G features.

A range of network capabilities
Quality on demand

Device status

SIM swap

Location verification

Carrier billing – check out

APIEdge site selection and routing

Number verification

Source GSMA

54

API monetisation

Telco cloud or telco + cloud?

As operators embrace cloud, cloud will embrace API exposure• For several years, major public cloudservice providers have been building
tighter relationships with – and value
propositions for – the telecoms vertical,
helping support network builds,
hosting network functions, deliveringedge capacity, and directly connecting
into telco networks as a result.
• Whereas relationships with
operators may be a relatively recent
phenomenon, cloud providers have anentrenched position with developers(who know how to build for them)and enterprises (who know how tointegrate with developer partners).
• Public cloud providers have an
established position with developers,
and connections into many telco
networks. They are already delivering
marketplaces that can connect thetwo worlds. They could prove a naturalchannel for operators to scale their
API monetisation efforts.

Cloud as the bridge: AWS Marketplace example

Launched in 2012, AWS Marketplace has grown to service thousands of vendors andhundreds of thousands of buyers
Telco 1

12,000+ listings

2000+ software vendors

Deployed in
24 regions

Telco 2Connectivity
Co-dev with AWS
SaaS solutions
ResellTelco 1Enterprise 1
Telco 2Enterprise 2
325,000+
active customers

50+ categories

2M+ SaaS
subscriptions

Telco 3

Accelerate time to contract from
2 months to 2 weeks

Accelerate time to deploy
from 7 days to 4 hours

Accelerate contract renewals,
from 7 days to 1 day

Enhanced visibility bycentralizing software portfolio

Enterprise 3© 2022, Amazon Web Services, Inc. or its aﬃliates. All rights reserved.

Source Amazon Web Services

55

API monetisation

Monetising means charging

In opening network capabilities, the revenue opportunity can’tbe ignored• Making network capability
APIs easily usable by a broad
range of developers and otherstakeholders is the means to alarger goal – monetising network
capabilities (including 5G features)and justifying further network
investment.
• Where a goal of API exposure ismonetisation, billing and charging
considerations need to be integrated
into solutions and strategies earlyin order to expose API availability
alongside cost of use, to ensure thatusage is paid for and to support
flexible pricing.
• From a service rollout automation
perspective, support for third-party
developers does not factor muchinto operator thinking. If the same
applies to plans around billingand charging support, this could
represent a larger future problem tobe solved.

Support for third-party developers does not factor much into operator thinking
What are the primary benefits driving service rollout automation investments within your organisation?
Improved service performance: capacity planning

Improved service performance: reliability

Improved business performance: customer conversion

Improved business performance: service upsell

Improved time to market: new services

Reduced costs: deployment / planning

Improved cloud support

Security threat mitigation

Improved support for third-party developer apps (open APIs)

0%

10%
Rank #1

Rank #2

20%

30%

40%

50%

Rank #3
Source GSMA Intelligence Operators in Focus: Network Transformation Survey 2022

56

API monetisation

APIs versus open versus security‘Open’ comes with security challenges and concerns• After sustainability (elevated inimportance against the backdropof rising energy costs), security
represents the highest operator
network transformation priority– whether network or end-user
security.
• Opening access to network APIs
and capabilities is critical to scale
usage but comes with clear security
concerns. Allowing third parties
to access key network capabilities
could represent a new threat vector
with regard to user authentication,
data exposure and so on.
• To scale the use of network APIs
while still complying with operator
demand, security will need to factor
into the story, with an end-to-end
focus including user management,
5G security mechanisms, cloudproviders, billing and charging
infrastructure security.

Security ranks highly in operators’ network transformation priorities
How important are the following priorities as a part of your network transformation strategy?
Sustainability
Security: end-user
Security: network
Cloud / IT technologies
Automation
Open networking tech
Regulatory compliance
Supply chain diversity
Upskilling staff
Public cloud competition

0%20%
Extremely important

40%

60%

80%

100%

Very important
Source GSMA Intelligence Operators in Focus: Network Transformation Survey 2022

Monetize B2B2X Ecosystems and Stay Ahead of Competition
As Communication Service Providers (CSPs) continue their transformation to digital business models for B2B and B2B2X, they recognize thatcomplexity is unavoidable when building rich, sophisticated multi-party business models. Those providers who strategically manage thatcomplexity, along with building opportunities will be the ones who thrive in the new digital economy. Are you ready to make that change?
Whether you’re providing your client the means to deliver business solutions to their customers or are allowing your customers to expand
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Rich andcomprehensive platform

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capabilities for your multi-sided businessmodels and your ever-growing
partner network.

Open andstandardized principles

Encompass is built on 3GPP, TM Forumand MEF architecture principles, so you canfuture proof your business for any use
case or partner with open APIs.

Telco industry
expertise

With 30+ years of experience intelecom business transformation,
you can rely on CSG to deliver
the results you need.

Let CSG help you reimagine your customers’
experience in ways you never thought possible
to keep your customers coming back for more.
To learn more, go to www.csgi.com/encompass.

58

API monetisation

Regional perspective
100%

80%

60%

40%

20%

Nigeria

Bangladesh

Philippines

India

South
AfricaVietnam

RussiaMexicoIranTürkiyeBrazil

Italy

China

FranceJapan

UK

Indonesia

2030

Thailand2022

Germany0%
US• Early API monetisation
efforts will also be critical insetting the stage for broader
global traction in the longterm, delivering importantcommercial and technicallessons that should benefit thesecond wave of 5G markets.

5G as a percentage of connections (20 selected markets)

Kuwait• Initial API monetisation efforts
should centre on relatively
more mature 5G markets,
despite long-term 5G potential
across the globe.

5G adoption is growing but it is early days for some markets

Saudi
Arabia• API monetisation efforts will
benefit from 5G adoption,
tapping into 5G capabilities andthe new business thinking that
accompanies them. While 5G
has scaled faster than any othermobile broadband technology,
it is still early days for manymarkets.

Source GSMA IntelligenceAPI monetisation

59

Considerations for the year ahead
Will new attempts to monetise
network capabilities meet a
different fate to past attempts?
• The concept of exposing andmonetising network capabilities is notnew. Past attempts on an industry or
operator level largely failed to meetlofty expectations.
• Diverse dynamics could position
current attempts for success, including
the maturity of the app economy
and developer ecosystems, 5G
capabilities, and operator focus on 5G
monetisation.
• As 2023 comes to a close, momentum
around network capability exposureand API monetisation will provide anindication of whether this focus will
fizzle out or endure.

Can operators collaborate
for scale?
• Network capability monetisation
efforts will only succeed if they engage
developers. Developers will look for
those efforts to scale across a large
user base.
• User scale is a direct function of
network scale. Monetisation efforts
that touch multiple networks promise
to reach a broad user base.
• If multi-network reach is key todelivering the user scale needed toengage developers, collaboration
across operators could drive theopportunity.

Do operators have the tools
to fully monetise (as opposed
to simply expose) network
capabilities and APIs?
• Exposing network capabilities
to developers is not the same as
generating revenues from that
exposure. It is only one piece of the
puzzle.
• Monetising use of network APIs andcapabilities will require diverse assets,
including usage-based charging,automated provisioning/testingsupport and usage visibility.
• Ecosystem support with monetising
API usage (not just exposing APIs) will
impact how money is made – in thelong term, if not in the near term.

60

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023
The digital consumer in the 5G era
Mobile network automation
The mobile edge and network slicing
API monetisation

The enterprise verticals story
Private wireless networks
The three Ss
ESG and the drive to net zero

Satellite andnon-terrestrial
networks
From star wars
to soft landing

61

TOPIC OVERVIEWSatellite and non-terrestrial networks
Why it mattersSpace is becoming a
crowded place• LEO revolution• Economics

Closing the coverage gap• Sizing the coverage versus usage gap• Geographical comparisons

Terrestrial can’t do it alone• Cost challenges with terrestrial expansion• Pragmatism reigns

Africa and South Asia offer
the clearest plays• Consumer revenue uplift• Regional breakdowns

The B2B opportunity spans
multiple sectors• B2B flying under the radar• Enterprise revenue uplift• Sector breakdown

Regional perspective

Considerations aheadSatellite and non-terrestrial networks

WHY SATELLITE MATTERS IN 2023

A pragmatic win–win
The coverage gap remains

The options are there

Revenue uplift

The gap: For all the expansion of
3G and 4G networks, 400 million
people (around 5% of the global
population) live outside the range
of a mobile broadband network.

Numbers: Satellites in orbit
will number more than 8,000(compared to 2,000–3,000
historically) once SpaceX andOneWeb’s constellations reachfull deployment. This offers tomobile operators a structural rise inconnectivity capacity from space.

Consumers: Closing the coverage
gap would offer an uplift ofaround $30 billion to the telecoms
sector by 2035, or 3% of existing
revenues.

Economics: While expansion ofterrestrial base stations could
bridge some of this gap, there will
be diminishing returns as the costs
get prohibitively expensive for the
least populated regions.

Wholesale versus retail: In thepast, there were some suspicions
on the intent of satellite groups,
but most partnership models are
now wholesale for backhaul, with
operators owning the customer
relationship – a win–win.

IoT/enterprise: The B2B dimension
is also significant. In the GSMAIntelligence Enterprise in Focus
Survey, 15–20% of companies
indicate they either use, or
would consider using, satellite
connectivity.

62Satellite and non-terrestrial networks

63

Space is becoming a crowded place
The LEO revolution is in full force• In the 1990s and 2000s, satellite
was a fairly traditional industry.
Companies like Iridium and Intelsat
sold connectivity to industries suchas automotive and defence, and(to a certain extent) households inremote areas at a high premium, withrelatively little technology innovation.
• This changed once SpaceX entered
the sector around 2016 withplans for a low Earth orbit (LEO)
constellation that, on its own, would
almost rival the number of satellites
in space overall.
• A range of other companies thendeployed LEO networks, including
OneWeb, Telesat and Amazon(Project Kuiper), operating witha lower cost model that offered
operators the chance to reach newcustomers, which would otherwise
not be possible or would beprohibitively expensive by simply
extending land base stations.

Growth in satellites in orbit: once flat, now ‘hockey-stick’ shaped
Number of satellites in orbit (cumulative)
12,00010,000

8,000

6,000

4,000

2,000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
LEO

MEO

GEO
Source GSMA Intelligence and Union of Concerned Scientists

64

Satellite and non-terrestrial networks

Closing the coverage gap

How to connect 400 million people?
• Despite achievements in expanding
coverage, 400 million people still live
in an area not covered by a mobile
broadband (3G/4G/5G) network,and progress has slowed since 2018.
• 200 million people live in areas
with no pre-existing infrastructure(even 2G) and so face significant
deployment costs.
• Almost 1 in 5 people in least
developed countries (in Africa andthe Pacific Islands in particular) haveno broadband coverage due to low
incomes, large remote populations
and challenging terrain.
• Meanwhile, millions of individuals live
in areas with a mobile broadband
signal but suffer from poor network
quality and patchy coverage.

Mobile operators’ extensive network investments have helped to closethe mobile broadband coverage gap
Percentage of population
100%
90%

12%

15%

19%

8%

7%

6%

80%
70%
60%

46%

43%

40%

46%

46%

46%

45%

5%

50%
40%
30%
20%

39%

43%

2016

2017

46%

48%

52%

2018

2019

2020

55%

35%

10%
0%
2015
Connected

Usage gap

2021

Coverage gap
Source GSMA Intelligence65

Satellite and non-terrestrial networks

Terrestrial can’t do it alone

100% coverage is not economically viable• A GSMA study of seven Africancountries showed that site
innovations combined with enabling
policy reforms around spectrum,
taxation and infrastructure sharing
will allow operators to expand
coverage.
• However, even with the reforms inplace, there will remain a significant
coverage gap in most of thecountries.
• Even subsidies for terrestrial
networks will not be able to achieve
universal coverage, due to the
exponential costs of covering thefinal 1–5% of population. Alternative
solutions are therefore needed.

Enabling policies can increase mobile broadband coverage by 2030
but won’t be enough
Percentage of population
100%
7%

4%

90%

20%

18%

11%

7%

10%

5%

1%

1%

13%

8%
30%

80%
70%

34%

35%

39%

22%

36%

44%
46%

25%

56%

55%

44%
46%

60%

23%

33%
33%

50%
40%
30%

54%

61%

54%

60%

53%

58%
45%

20%

51%
43%

44%

41%

47%
37%

44%

10%
0%

Baseline Policy
reforms

Baseline Policy
reforms

Baseline Policy
reforms

Baseline Policy
reforms

Baseline Policy
reforms

Baseline Policy
reforms

Baseline Policy
reforms

Nigeria

Sierra Leone

Ghana

Benin

RwandaTanzania

DRC

Connected

Usage gap

Coverage gap
Source GSMA analysis of data sourced from mobile operators, GSMA Intelligence, Facebook
Connectivity Lab and CIESIN, household survey data, and Group on Earth Observations

66

Satellite and non-terrestrial networks

Africa and South Asia offer the clearest plays
But don’t forget Europe• The financial opportunity for mobile
operators partnering with satellitecompanies tends to be correlatedwith the size of the coverage gap.
• This means that the opportunity forrevenue uplift is greatest in Africa,
South Asia and, to a certain extent,parts of Europe.

The consumer spend uplifts from connecting each incremental subscriber
sit between 3G and 4G ARPU levels
$4.42

$8.02

$4.29

7.3%

7.1%

$4.29

$3.39

$7.62

8.9%
8.0%

• The revenue uplift ranges from $4–8
per month, per customer for thoseconnected via satellite (i.e. between
what average 3G and 4G tariffs yieldnow).
• This scales to around $30 billion
by 2035 – an uplift of 3% on
existing telecoms sector revenues.
This amount of money will notnecessarily be realised, butsomething in that ballpark would
be a meaningful uptick and onethat would not be possible withterrestrial networks alone.

$1.70

6.7%
5.8%

4.0%

Sub-SaharanAfricaSouth Asia

Europe &Central Asia

Coverage gap (% of adult population, 2022)

Middle East &North Africa

East Asia &the Pacific

Latin America &the Caribbean

North
America

Incremental revenue per addressable person
Source GSMA IntelligenceSatellite and non-terrestrial networks

67

The B2B opportunity spans multiple sectors
8% of a big number is a big number• There is a gap in the market forenterprises situated in areas of
weak or no connectivity, or that
require dynamic coverage. Dynamic
coverage plays to companies thatrun moving assets, such as thosein automotive, commercial logistics
and shipping.

Around 1.9 billion devices (8% of the IoT market) will be addressable fordirect-to-device satellite by 2035
Sector share of total
Utilities
Automotive(connected cars)
6%• Similarly, there is demand in sectors
with remote installations, including
agriculture, heavy industry (oil & gas,
mining), rural manufacturing andhealthcare.
• The revenue opportunity equates
to 25% of existing IoT connectivity
revenues for operators, which isa meaningful uplift, particularly inan environment of commoditisedconnectivity pricing.

Manufacturing

1%

Agriculture
26%

11%

Oil and gas
MiningHealthcare

1.9

11%

Commercial haulage
Shipping/maritime

billiondevices
11%

21%

12%

Source GSMA IntelligenceSatellite and non-terrestrial networks

Regional perspective
AfricaAsia

US• Africa represents the largest
source of unconnected people(130 million or 15% of the adult
population) so is a natural
opportunity.

• Asia is home to many
interested operators, including
those who have alreadydeployed their own satellite
constellations and may wish tomove to a lower cost supplier.

• In the US, it’s a case of when,
not if.

• However, operators here arealso among the most financiallypressed and exposed to risingequipment prices throughforeign exchange depreciation.
• Satellite partnerships will growbut may be slowed by theabove factors.

• The B2B dimension is equallyinteresting given the rise indemand from manufacturing
and energy companies, whogrow in line with GDP growth.
Several Asian countries
are among the fastest here
(e.g. Vietnam, Thailand andIndonesia).

• As interesting as the economics
is which type of partnershipmodel is most commerciallysuccessful, particularly incomparing D2D options (AT&T
and AST versus T-Mobile andSpaceX).
• The Apple-Globalstar deal willoffer messaging in emergency
situations at first but could be
expanded to other connectivity
services in the future.

68Satellite and non-terrestrial networks

69

Considerations for the year ahead
Does D2D go mainstream?
• D2D offers the benefit of a lower costfor consumers/businesses (given there
is no dish). All else being equal, thisshould accelerate take-up.
• The revenue upside is significant($30 billion by 2035), though
spectrum interference and rights
remain a hurdle in some jurisdictions.

Is Apple’s move a presageof others?

Can satellite help operatorswith B2B?

• What Apple does tends to garnerattention. The partnership with
Globalstar to offer emergency SMS is
no different.

• The enterprise market is often
overlooked in the satellite discussion,
but with 1.9 billion assets in play, it
should not be.

• However, this is not likely to provea prelude to Apple launching wider
communication services, but rather aspur for operators to extend coveragethrough this means.

• The short answer is ‘yes’ for industries
requiring low-bandwidth, wide areaconnectivity (e.g. utilities, asset
tracking). Servicing speed and latencysensitive use cases in, for example,
manufacturing is likely some way off
considering that even ‘5G’ satellite
often only reaches speeds of 2–3 Mbps
in reality.

70

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023
The digital consumer in the 5G era
Mobile network automation
The mobile edge and network slicing
API monetisation
Satellite and non-terrestrial networks

Private wireless networks
The three Ss
ESG and the drive to net zeroThe enterpriseverticals story

IoT 2.0, eSIM andthe drive for scale

71

TOPIC OVERVIEW

The enterprise verticals story
Why it matters

The rise of digital industries• Digital transformation more important than ever
• Enterprises find digital technologies compelling• Dedicated resources and budgets are key• Link between IoT and digital transformation
IoT enables digital transformation • Enterprise sectors driving growth• New revenues and cost saving equally important

5G adds impetus to cellular IoT• Cellular IoT market doubling to 2030
• 5G brings new capabilities for IoT• Testing new use cases

eSIM looking for scale• Moving beyond connected cars
• Leveraging key benefits: security and scalability• Supporting private networks and the green imperative

The B2B opportunity forthe industry• Seeking incremental revenue growth: B2B an opportunity for all• Partnerships on the rise
• Cloud and security driving B2B revenue growth

Regional perspective

Considerations aheadThe enterprise verticals story

WHY THE ENTERPRISE VERTICALS STORY MATTERS IN 2023

Digital transformation of verticalsectors is the biggest catalyst for
the B2B opportunity
The digitisation imperative

The B2B opportunity

5G monetisation

Industry 4.0 spreads: Digitaltechnologies are increasingly
important to competitiveness fora range of industries, well beyond
manufacturing.

New growth story: With consumer
revenue stagnating, all players
in the industry (e.g. vendors,
operators, hyperscalers, techcompanies) are targeting thedigitisation of verticals to generateincremental revenue growth.

Seeking 5G RoI: 5G SA
deployments will gain momentum
in 2023, adding pressure tomonetise 5G networks throughmore scalable B2B services.

Sustainability moves up
the agenda: More and moredigital transformation projects
and decisions will factor into
sustainability targets.
The national agenda drive:
Digital transformation isincreasingly embedded in longterm government plans to boost
productivity and competitiveness.

Doing it together: Partnerships are
increasingly crucial to drive scaleand optimise the use of resources
and know-how.
Organisational changes: Fitfor-purpose business units andstaff retraining/upskilling will be
increasingly important to capture
the B2B opportunity.

5G FWA on the rise: Operators will
increasingly position 5G FWA as avalid alternative to traditional fixed
broadband connectivity for SMEs.
Thinking beyond 5G: Now thatearly 5G technology has matured,
operators are beginning to lookat what comes next, including
5G-Advanced and 6G.

72

73

The enterprise verticals story

The rise of digital industries

Digital technologies help address enterprise challenges• Even before Covid-19, the trend
towards digitisation was clear, but
the pandemic has accelerated theshift. Digital technology is also
helping enterprises address new
external pressures such as disruption
to supply chains, rising energy costs,
and compliance with sustainability
targets.

New technologies important to achieving success in digital transformation
Representation of share of enterprises who rated the new technologies as very important or somewhat important
5G

Privatenetworks

Massive
IoT

Edge
computing

Networkslicing

Transport• GSMA Intelligence research showsthat enterprises in all verticals findnew technologies such as 5G, private
networks, massive IoT, edge andslicing compelling to advance theirdigital transformation. That is an
important factor to build on. Turning
enterprise interest into deployments
will be a key focus in 2023.

Utilities• Realising the full vision of digitalindustries will take many years,but 2023 will likely see important
advancements and larger-scale
deployments. For enterprises,
dedicated resources and budgets
will be key.

Healthcare

Manufacturing

RetailAutomotive

Source GSMA Intelligence Global Enterprise Survey

74

The enterprise verticals story

IoT enables digital transformation
Enterprise sectors are driving IoT growth• The link between IoT and digitaltransformation is clear: IoT
deployments are part of a wider
digital transformation agenda for
63% of enterprises (standalone
initiatives for 37% of enterprises).

IoT will reach 37 billion connections by 2030, with the enterprise sector
driving growth• The impending growth for IoT
underlines the economic valuethat enterprises place on ‘smart’operations. Generating newrevenues and saving costs areequally important objectives when
deploying IoT.

35

• 2023 will see 2 billion new IoT
connections globally (12% growth),with 1.4 billion (70%) from enterpriseuse cases. Indeed, enterprise will
surpass consumer in terms ofconnections in 2024.

2040Enterprise

25

15.1
5

0

Smart utilities

2021
total

Note: Other enterprise includes agriculture, shipping, logistics, heavy industries (e.g. oil and gas)
and a range of smaller segments. Other consumer includes a range of small-volume categories.

Smart buildings

1.8

Smart retail

0.7

Smart cities

Other consumer

Smart vehicles

10

Wearables

15

Consumer electronics

0.5

Smart manufacturing

6.8

3.8

Other enterprise

3.1
30

Healthcare

0.3

Smart home

• IoT connections will reach 37.4
billion by 2030. Enterprise IoT willbe the main driver of growth, with
progress in almost all enterprise
sectors.

Global IoT connections (billion)

37.4

2030
total
Source GSMA Intelligence

75

The enterprise verticals story

5G adds impetus to cellular IoT

New capabilities to scale the use of mobile technologies in IoT• While cellular networks currently
serve 15% of total IoT connections,the explosion of the IoT market
provides significant room for growthin the cellular IoT space. The numberof licensed cellular IoT connections
will reach 5.3 billion globally by2030, up from 2.6 billion in 2022
(10% CAGR), with China by far thelargest market (3.5 billion).
• Within the cellular IoT space, cellular
M2M will continue to support IoT
devices that require mobility (with
5G enabling lower latencies andhigher data transfer speeds for
URLLC), while licensed LPWA will
support devices previously servedby legacy cellular networks (2G/3G).
• 5G will play a dual role in 2023: it will
support IoT growth and will be used
to test use cases (e.g. autonomousvehicles, drones, enterprisemetaverse) that will then scale in the
5G-Advanced or even 6G eras.

The cellular IoT market will double between 2022 and 2030
Global licensed cellular IoT connections (consumer and enterprise, billion)
Number of connections by region
Billion, 2030

Asia Pacific

5.2

5.3

3.85

5.0
4.8

North America

0.57

4.4
4.1

Europe0.55

3.5

Latin America

3.1

0.13
2.6
CIS

2.1

0.11
MENA

0.09
SSA

0.05
2021

2022

2023

2024

2025

2026

2027

2028

2029

2030
Source GSMA Intelligence

The enterprise verticals story

76

eSIM looking for scale

Turning availability into adoption• eSIM technology has long been
seen as a significant enabler of IoT
deployments across vertical sectors.
However, beyond automotive, eSIM
adoption has yet to reach critical mass.
• The potential for growth is significant.
GSMA Intelligence research showsthat 83% of enterprises consider eSIM
an important technology to achieving
success in their IoT deployments, with
best-in-class security and scalability
the top eSIM benefits. There is an
opportunity for operators and otherproviders of eSIM and IoT solutions tofulfil unmet enterprise demand.
• The focus in 2023 will be on advancing
eSIM adoption beyond automotive(there is growing eSIM momentum
in smart meters, smart grids, asset
tracking, smart cities) and in private
networks, while demonstrating how
eSIM supports the green imperative.

Scalability and security top the benefits of eSIM for IoT deployments
among enterprises
How important is each of the following eSIM benefits to the success of your IoT deployments?
Percentage of respondents selecting very important.
Device-to-cloud or chip-to cloud security(eSIM ensures data is secured all the way from where the data is generated to where the data is processed)

66%
eSIM provides confidence that only devices with the correct security credentials can gain access to the network

63%
Ability to simultaneously and remotely patch deployed devices in the event of security vulnerabilities

62%
Ability to remotely update large volumes of devices quickly/simultaneously

62%
eSIM uses industry recognised standards(SIM as the most secure place to store credentials and keys to ensure secure data communications between cellular connected devices)58%
Ability to switch mobile network provider remotely in real time

58%
Tamper-proof and theft-proof as eSIM is embedded to device

58%
Base: enterprises who consider eSIM important to achieve success in their IoT
deployments (N=c2,400)

Source GSMA Intelligence Global Enterprise Survey

77

The enterprise verticals story

The B2B opportunity for the industry
Capturing incremental revenue growth• Digital transformation of vertical sectors is the biggest
catalyst for the B2B opportunity. Unsurprisingly, operators,
network vendors, hyperscalers, tech specialists and a hostof other companies in the B2B value chain are all seeking tomonetise it through service innovation and partnerships. In
2022, we saw an unprecedented number of new partnerships;
2023 will take these even further, spanning all areas of B2B,
including networks, cloud, edge, IoT and the metaverse.

B2B as a percentage of total revenues• For operators, in turn, B2B is the main driver of revenue
growth (30% contribution to total revenues in 2020, on
average for major operators), with further potential going
forward as IoT deployments and enterprise digitisation scale.
Cloud and security will continue to drive B2B revenue growthin 2023.

B2B as a percentage of total revenues (2020)*

11 operators in aggregate (simple average)

29%

30%

28%

56%

57%

59%

27%

44%

2017

2018

2019

2020

Singtel
B2B

43%

BT/EE

41%

SoftBank

65%

35%
AT&T

66%

34%
Telstra

70%

30%

73%

27%

81%

81%

81%

82%

19%

19%

19%

18%

KDDI

China
MobileVerizon Vodafone Telefónica Turkcell

Other (mostly consumer)*Service revenue for Vodafone. For Telstra, B2B excludes revenue from small businesses (reported within Consumer).
Domestic figures for Turkcell (Türkiye accounts for 86% of Turkcell Group revenue).

Source company figures (at group level), GSMA Intelligencethalesgroup.com

Thales for IoT: In the context of drastic growth of many diverse connected devices, Thales provides the
IoT stakeholders with a complete solution to enable the best connectivity, relying on a scalable and sustainableinfrastructure. Thales is leading the way towards GSMA eSIM standards for IoT and further facilitate IoT
deployments with innovative value added services that remove IoT devices manufacturing constraints and help
avoid cybersecurity breaches.

Thales eSIM solutions for the IoT:
Thales Adaptive Connect: making massive IoT available to all
Thales Adaptive Connect implements the GSMA eSIM standards, SGP.31 and 32, designed for massive IoT.
With this solution, Global Connectivity Service Providers and Mobile Network Operators can offer global,
resilient and cost-effective connectivity to IoT Service Providers, with no impact on device manufacturing andlogistics operations. This innovative new solution, designed to deliver the flexibility required by the massive IoT
segment extends commercial opportunities to MNOs and global network service providers of all sizes.
Read more

Thales IoT SAFE: improving IoT cyber security through eSIM-based scalable trust
While the emergence of billions more connected devices creates a wealth of new opportunities for stakeholders,it also presents profound security challenges. Every connection offers hackers a potential access to private andsensitive data. In response, Thales implemented the new GSMA IoT SAFE specifications. This set of globally
recognized standards is designed to secure IoT devices and the connections to the cloud at scale.
The GSMA IoT SAFE initiative is built around the eSIM, which is field proven, hardware tamper proof and fully
standardized. Because security is delivered through the eSIM, there is no impact on device design and production.
Thales IoT SAFE features a unique touchless provisioning service for cellular IoT devices.
This innovative plug & play approach provides security by design and removes all security constraints on
device production and deployment.
Read more

Search: Thalesgroup

The enterprise verticals story

Regional perspective
Asia
Pacific

North
America

Europe• China leads (by far) on cellular
IoT connections and plays a keyrole in driving IoT tech innovation(including ambient IoT – being
tested by China Mobile andHuawei). 5G for B2B is backed
by long-term government digitaltransformation agendas.

• North America is home to a vibrant(and growing) ecosystem of B2Btech suppliers of all sizes. Edge
computing and private networks
are driving B2B momentum. CBRS
spectrum is commercially available
for enterprise 5G deployments.

• Europe is lagging behind on 5G SA
networks but there is extensive useof 4G for B2B services.

• 5G for B2B is on the rise indeveloped markets (e.g. Australia,
Japan, South Korea, Singapore),
supported by partnerships between
operators, network vendors andcloud companies.
• Smart cities are a big focus invarious countries (e.g. China, India,
Singapore, Vietnam), driven by
public-private partnerships.

• Major US operators are focused on
next-generation connectivity (5G
and fibre rollouts) to support thedigital transformation of verticalsectors. Media and entertainment isa big focus.
• The launch of eSIM-only
smartphones may spur eSIM
momentum in IoT too.

• Efforts continue to modernise
policy and regulation in support ofdigital transformation.
• Operators are undergoingorganisational changes to create
fit-for-purpose B2B units (e.g.
Telefonica Tech, BT).
• Germany is a country to watch forsmart manufacturing progress anduse of enterprise spectrum.

79The enterprise verticals story

80

Considerations for the year ahead
Will M&A in IoT be a bigger trend?

How will eSIM and iSIM play out?

• Ericsson’s IoT Accelerator andConnected Vehicle Cloud businesses
will be transferred to Aeris, while
reports have suggested Vodafone may
consider spinning off its IoT business
unit. Although various factors play arole, there are signs that established
IoT providers may be reassessing their
IoT strategies and financials.

• While the industry is currently focusedon eSIM, iSIM technology is also being
explored both as integrated eUICC andintegrated UICC.

• To that end, GSMA Intelligence
research shows that IoT will continue
to be a strategic focus for operators
but 36% stated they plan to reevaluate/adjust their IoT strategies.

• eSIM versus iSIM is not an either/or scenario; there is overlap (e.g.
integrated eUICC). Both are valid
options that will coexist to meet therequirements of varied IoT use cases.

What does the metaverse mean
for the vertical story?
• The metaverse is still in its early days,
but the pace of announcements has
accelerated in the last six months, withearly developments in sectors such as
digital entertainment and retail.
• GSMA Intelligence research showsthat only 5% of operators have alreadydefined an enterprise metaverse
strategy, but many keep exploring
opportunities. Operators should also
look for synergies with their current
enterprise solutions, such as private
wireless networks that cater for
on-site and remote operations oredge computing that reduces userexperienced latency – both relevant tometaverse’s AR/VR applications.

81

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023
The digital consumer in the 5G era
Mobile network automation
The mobile edge and network slicing
API monetisation
Satellite and non-terrestrial networks
The enterprise verticals story

The three Ss
ESG and the drive to net zeroPrivate wirelessnetworks

A flavour for all tastes

82

TOPIC OVERVIEW

Private wireless networks
Why it matters

Accelerating launches• Where operators stand in offering private 4G and 5G• The private 4G opportunity

The growing adoption base forprivate wireless networks• Number of private wireless enterprise customers• Early private 5G customer feedback

Vertical sector adoption• Verticals that are a good fit for private wireless networks• Considerations for private wireless network evolution

Who makes private wirelessnetworks possible?

• New entrants in the market• Who operators see as partners and competitors

IoT synergies• The emerging synergy between private wireless networks and IoT• What it means for the future of IoTRegional perspective

Considerations aheadPrivate wireless networks

WHY PRIVATE WIRELESS NETWORKS MATTER IN 2023

A significant opportunity withdirect monetisation opportunities
Appealing to enterprises

Tech enablers:
5G, IoT and spectrum

More players in the game

Mobile networks as the backboneof digital transformation:
Connectivity is an essential
component in digitising operations
and enabling smart products.

5G characteristics cater forenterprises: The cloud-native
nature of 5G offers possibilities forenterprises to tap into networking
resources.

A highly contested space:
Operators, vendors, hyperscalers
and infrastructure companies arelooking to tap into the private
wireless network market.

Private wireless networks fit
with modern enterprise needs:
Enterprises’ connectivity needs
have evolved, requiring better
security, control and performanceto support operations and digitaltransformation.

IoT synergy: IoT is increasingly
requested by users of private
wireless networks, facilitating
adoption of connected equipment
and smart applications.

New entrants: Startups andspecialist software providers areinnovating and aspire to establish
their presence in the private
wireless space.

Enterprises tap into spectrum
resources: Shared and private
spectrum schemes make spectrum
available to enterprises for theirown use.

83

84

Private wireless networks

Accelerating launches

Don’t overlook the private 4G opportunity• Based on GSMA Intelligence survey
data, around half of operators
globally offer private 4G solutions.
By 2025, it is anticipated that almost
all operators will have brought suchofferings to market.
• Successful deployments ofprivate 4G solutions will increase
enterprises’ appetite to upgrade
to private 5G, which will be easy
once equipment and spectrum areavailable.
• A third of surveyed operators havelaunched or are testing private 5G
wireless networks, while a majority
are planning to launch in the next
three years.

Private 5G set to move to mainstream
Where are you in the process of offering private wireless networks? Select one
4G

5G

We have already launched commercial solutions
49%

12%

We are testing commercial solutions
33%

22%

We are planning commercial solutions: we will likely launch in 2023–2025
15%

59%

We are planning commercial solutions: we will likely launch beyond 2025
0%

3%

We have no plans
3%4%

Source GSMA Intelligence Operators in Focus: Enterprise Opportunity Survey 2022

85

Private wireless networks

The growing adoption base for private networks
Anticipated high growth is justified• Most operators (71%) claim more than
100 customers, while around one inthree has more than 200 customers
for private wireless networks. This is asignificant increase compared to 2021,
when the majority of operators had
between 10 and 100 customers forprivate wireless networks.

Most operators claim more than 100 private network customers
Number of enterprise customers for operators’ private wireless networks

0.35

35%

0.30
0.25

• Questions remain around how
to measure success. A quarterof operators say their enterprisecustomers have already achieved
their desired ‘return’ on the private
network investment. A higher share(40%) claim a benefit but have not yet
validated a return.

0.20

21%
19%

0.15

15%

0.10

• This leads to the USP question: what
differentiates private 5G from edge
cloud or Wi-Fi, for example? Consensus
has coalesced around the attributesof connectivity assurance, reliability
and the ability to drive low-latency
applications that grow productivity(think robotics and drones).

0.05
0.00

6%

1–9 customers

5%

10–49 customers

50–99 customers

100–49 customers

150–200 customers

More than
200 customers

Source GSMA Intelligence Operators in Focus: Enterprise Opportunity Survey 2022

86

Private wireless networks

Vertical sector adoption

Operators’ bets are in line with use-case requirements• Private wireless networks are a good
fit for certain verticals, providing
benefits for specific use cases:– In the media, retail andlive entertainment sectors,
experiences leverage multimedia
content in specially designed
spaces such as venues, stadia andretail outlets.
– Hospitals and airports are superintensive in terms of logistics, witha strong need for highly secureand reliable networking for people
and assets.
– Oil & gas, mining and agriculture
are moving up the agenda. Theseverticals rely on heavy equipment
and machinery; worker safety is
critical; and operations often takeplace in remote areas and harshconditions. The advantages ofprivate wireless networks in termsof coverage, reliability and security
are therefore appealing.

Demand for private wireless networks seen across a range of verticals
At present (2022), and thinking about the markets/countries where your company operates, what are the top threeindustry verticals where you see the highest demand for private wireless networks (4G/5G)? Select one answer for
greatest demand, one answer for second largest, one answer for third largest. Aggregate.
Media (e.g. on-location TV production and broadcasting)46%
Consumer electronics and smart products
36%
Healthcare (e.g. hospitals) & airports
32%
Retail (e.g. physical stores, experiential retail, etc.)
30%
Live entertainment (e.g. smart stadia, smart venues)
27%
Logistics (e.g. fleet management and tracking, professional vehicles, trucks, robotics, drones)
24%
Financial services
23%
Energy grid and utilities
16%
Oil & gas, mining and agriculture
16%
Manufacturing
15%
Public sector and military defense
14%
Smart cities (e.g. public safety, public transport, road management, waste management) & ports
12%
Gaming and e-sports
6%
Transport and automotive (e.g. consumer owned vehicles, connected vehicles, self-driving vehicles, remote driving)
6%
Source GSMA Intelligence Operators in Focus: Enterprise Opportunity Survey 2022

87

Private wireless networks

Who makes private wireless networks possible?
New and old players in the game• As well as operators, establishedtechnology companies and startups
are eyeing the private wireless network
opportunity.

• Almost half of operators (41%) favour
telecoms equipment vendors as
partners in private wireless network
solutions, while around a third viewindustrial vendors as partners.

• Hyperscalers are seen as less of acompetitive threat – in large part
because many operators work directlywith them on enterprise technology
implementations.

Operator view of competitors and preferred partners in private wireless networks
Who do you view as your most formidable competitor/partner, besides your telecoms peers in private wireless networks?
Cloud vendors, 'hyperscalers' (e.g. AWS, Microsoft, IBM, etc.)
Industrial vendors (e.g. Bosch, Siemens, Rockwell, etc.)
System integrators (e.g. Capgemini, Accenture, etc.)
Telecoms network equipment vendors (e.g. Ericsson, Nokia, etc.)
IoT platform companies (e.g. PTC, C3IoT, etc.)
Business software platforms (e.g. Oracle, SAP, etc.)
Other

0%
5%
Preferred partners

10%
Competitors

15%

20%

25%

30%

35%

40%

45%

50%

Source GSMA Intelligence Operators in Focus: Enterprise Opportunity Survey 2022

88

Private wireless networks

IoT synergies

Clear synergy between IoT and private wireless networks• Enterprises that want private wirelessnetworks also want IoT. Around 70%
of operators claim that enterprisecustomers who buy private wireless(4G/5G) also request IoT services
occasionally or very frequently,
indicating an important synergy
between the two services.

Strong demand for IoT services among private wireless network
enterprise customers
Thinking of your private wireless network (4G/5G) enterprise customers, how frequently do they request IoT services
when buying private wireless networks? Select one• IoT fits well with private wirelessnetworks:– IoT aimed at use cases such as asset
tracking and equipment monitoringis typically deployed in the enterprisesetting – in factories, construction
sites or offices, for example.
– In many use cases for private
wireless networks, the end-user will
have to use connected devices suchas laptops, tablets, smartphones,
cameras and glasses.
• It is therefore likely that growth inprivate wireless networks will drive
renewed interest and further growth inenterprise IoT.

19%

Very frequently

52%

Occasionally

Rarely26%

3%

I don’t know

Source GSMA Intelligence Operators in Focus: Enterprise Opportunity Survey 2022

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Private wireless networks

Regional perspective
Europe• Operators based in Europe
report higher adoption rates
than Asia Pacific in terms ofnumbers of private wirelessenterprise customers, despite
the fact that operators in
Europe are planning to launch
private 5G later than those in
Asia Pacific. Shared spectrum
schemes in Germany andthe UK have been attracting
enterprises in private wirelessnetworks.

North
America

Asia• Operators in North America
appear to have made moreprogress in private wirelessnetworks than counterpartsin Asia Pacific and Europe,
considering the number ofenterprise customers. This
could reflect the success of
the CBRS spectrum sharing
scheme in the US, which is
driving interest in private
wireless networks.

• Operators in Asia Pacific canboast the most advanced
private wireless launches andtesting activity. Most activity
is in China, Japan and South
Korea.

90

Private wireless networks

91

Considerations for the year ahead
Do private wireless networks
establish a position within
enterprise digital transformation?

Can operators effectively
scale their private network
offerings?

Could private wireless networks
drive a new wave of growth forenterprise IoT?

• Cloud, AI, analytics and IoT havebecome associated with digitaltransformation among enterprises.
Private wireless networks are a newproposition for digital enterprises;
if they are to live up to growth
expectations, they would have to
be widely recognised as a distinct
digital transformation enabler, leading
enterprises to hire talent and build
relevant capabilities.

• Private wireless networks are part ofoperators’ enterprise business, which,on average, accounts for 30% of total
revenues. The majority of operators
expect private wireless networks toaccount for up to 20% of their total
enterprise revenues, which could mean
up to 6% of total revenues. Achieving
this will require significant technicaland commercial effort.

• If there is actual synergy between IoTand private wireless networks, thengrowth in the latter could drive arenewed wave of growth for enterprise
IoT.

92

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023
The digital consumer in the 5G era
Mobile network automation
The mobile edge and network slicing
API monetisation
Satellite and non-terrestrial networks
The enterprise verticals story
Private wireless networks

ESG and the drive to net zero

The three Ss

Sustainability, security
and spectrum

93

TOPIC OVERVIEW

The three Ss
Why it matters
The new priorities ina mobile network• Operator priorities for network transformation• What has changed?
• Implications for vendors

Cloud and the open movement:
implications for energy• The implications of 5G workloads in the cloud(processing power, energy)• Open RAN and the broader open movement

Benchmarking progress onenergy efficiency• The value of measurement• Benchmark results: 2022 versus 2021
• Nuance, geographic variance and implications

Security in an insecure world• A changing landscape• Security offence (new revenue)• Security defence (securing networks)

5G spectrum• A multi-pronged approach• Mid-band: come one and all• mmWave: cementing its place

Regional perspective

Considerations aheadThe three Ss

94

WHY THE THREE Ss MATTER IN 2023

Energy efficiency and security
are top priorities for 5G networks
5G efficiencies versus
lower energy overall

Future innovation as things
go ever more virtual

Security: offence and defence

Networks as the ‘low hanging
fruit’: The network accounts foraround 90% of electricity use
for an average operator (the rest
being fleets, property and travel).
Equipment upgrades continue totarget the RAN (such as AI-driven
sleep), core and data centres (suchas liquid cooling), with positiveeffects.

5G workloads increasingly moving
to the cloud: As more 5G network
loads are handled in the cloud,the imperative is to measure theenergy impact, and coordinate with
AWS, Microsoft, Google and others
on efficiency measures.

Offence: Security is increasingly
seen as a sellable service for
operators (67% rate it as suchin selling to enterprise clients).
However, it remains to be seen
whether that means selling security
as a service (implying revenue
growth), or if it is a de facto
requirement in general for 5G(a cost of doing business).

A holistic challenge: Lowering
energy use overall is the challenge.
That depends on retiring 2G/3G
networks, behavioural change andmoving to renewables.

Measuring the energy impact ofopen RAN: A key question aroundopen RAN is the impact on energy
consumption. While open RAN will
likely be adopted in phases over
several years, more data is needed
to determine the effect (if any).

Defence: Efforts to upgrade cyberdefences are using ever-advanced
techniques, including quantum
computing.

95

The three Ss

The new priorities in a mobile network
Energy efficiency tops the bill
• A clear change in telecoms network
buyers’ priorities is the growing
imperative to build sustainability into
the technology roadmap.
• Energy and the climate used to be
confined to the realms of CSR, but
survey evidence over the last three
years suggests these factors havesteadily risen up the agenda. Thishas culminated in energy efficiency
being the top priority, with morethan 80% rating it importantor extremely important to theirplanned upgrades.
• This speaks primarily to a costsavings and environmental story for
operators. For equipment vendors,
it underlines the fact that powerefficient kit is now a competitive
selling point – just as much as
security.

Energy and sustainability mattered most to telecoms network buyers
in 2022
How important are the following priorities as part of your current network transformation strategy?
Extremely important + very important.
100%
90%
80%

84%

70%

69%

60%

66%
59%
55%

50%

48%

40%
30%
20%
10%
0%
Energy efficiency
and sustainability
2021

Network
security

Cloud andIT technologies

Open networking
technologies(incl. open RAN)

Vendordiversity

Competing withpublic cloud providers

2022
Source GSMA Intelligence Operators in Focus: Network Transformation Survey

96

The three Ss

Cloud and open: implications for energy
Can open networks drive further gains?
• The rise of open architecture
networks, including open RAN, hasgarnered much attention, even if its
adoption has varied around the world.
• Besides reducing the market powerof traditional vendors and lowering
capex and opex costs for operators,
energy implications are also in play.
• It is too early to make firm conclusions
on the overall energy efficiency ofopen RAN compared to traditional
mobile network architectures. Moreproof points are needed.
• The overall energy burden cannot beviewed in isolation of one company
or technology. Open RAN is software
driven and therefore linked to thedatacentre world, whether controlled
by operators directly or leased from
Amazon, Microsoft and others.
• To help gain a holistic view, moredetail on scope 3 emissions will beneeded – a key challenge.

Open RAN is becoming a global phenomenon
Number of open RAN commitments and commercial deployments by region (as of August 2022)

5

3

24

1
4

4

8

8

14
11
7
2
Asia Pacific

EuropeMENA

Commitments

Commercial deployments

Northern
America

Sub-SaharanAfricaLatin America

CIS

Source GSMA Intelligence97

The three Ss

Benchmarking progress on energy efficiency
Translating energy efficiencies into actual reductions• 5G is often said to be the mostenergy-efficient mobile technology
ever. This is true given that it is 50%(or more) spectrally efficient than 4G.
However, with inexorably rising data
traffic forecast, the bigger question is
how operators can lower their energy
consumption overall.
• The network accounts for 90% of
direct energy usage for an average
operator so is the lowest hanging fruit.
• GSMA Intelligence tracks industrylevel progress through the Energy
Efficiency Benchmarking study.
Overall efficiency is improving;in 2022, it was 0.17 kWh per GB,
compared to 0.24 in 2021.
• European groups continue to lead.
Africa and Asia are playing catch up,
reflecting lower availability and useof renewables (see next section),continued use of 3G (which is lessefficient) and capex challenges for
network upgrades.

The energy make-up and performance of mobile networks
2020/212021/22Core network
energy yield

kWh per GB data transferred(mobile networks)

0.24

0.17

Electricity
distribution

RAN

73%

87%

Core

13%
12%

Fuel split
in 2022

Datacentres and edge

9%

Other (e.g. fleet)5%1%

83% Traditional grid
9%

Renewables

8%

DieselNote: data based on GSMA Intelligence Energy Efficiency Benchmarking studies in 2021 (31 networks)
and 2022 (43 networks)

Source GSMA Intelligence98

The three Ss

Security in an insecure world
Offence and defence• Security has always been somethingof a hidden gem, under-monetisedby operators.

Operators see the value of security in their enterprise sales strategies
Percentage of operators rating service as important or very important to their enterprise sales strategy• This is not for want of recognition;
while more than 90% of operators
rate 5G as key to boosting sales withenterprise, 66% say the same about
security.
• The question is how to play
offensively for an inherently
defensive capability. This is
likely where new quantum andcryptography upgrades will comeinto play in 2023.
• While these may not be sellable‘products’ like McAfee or Norton
antivirus software, they standto increase the value of overallmanaged services packages
that operators sell to enterprisecustomers, bundling connectivity,
cloud and potentially edge compute
support.

91%
5G connectivity

75%
IoT

68%
Managed and professional services(e.g. private networks)

55%
Cloud

66%
Security

39%
Edge

34%
Big data
and analytics

Source GSMA Intelligence99

The three Ss

5G spectrum

Horses for courses• 5G spectrum use continues to be atri‑band strategy, using high frequencies(mmWave), mid-band and low band
below 1 GHz.

• Most of the initial 5G networks launchedon low band, but the picture is shifting
as mid-band frequency allocations(1–7 GHz) start to feed through.

• Over the period to 2030, we expectthat the majority of GDP value from 5G
will be underpinned by mid-band.

Spectrum distribution for 5G networks so far
Trials*Assignments

Launches**

7%
21%
31%

18%

35%

60%
5%

75%
48%

<1 GHz

1–7 GHz>24 GHz*Frequency information available for 54% of trials**Frequency information available for 70% of launches

Note: figures refer to trials, assignments and launches, not individual operators. A number of operators have trialled or launched their 5G networks on more than one frequency.
Data correct to 30 September 2022.

Source GSMA IntelligencePerformance Redefined
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The three Ss

Regional perspective
Europe• European operators are more
exposed to the energy crisis. This
may foreshadow a level of frugality
in how energy is apportioned acrossthe network compared to otheroperations. This is balanced against
the positive that renewables area majority energy source for thelargest groups in Europe (80–90%
for Telefonica, Vodafone, Orange
and BT).

North
America• North America is a clear leader
in mmWave 5G products. US
operators (particularly Verizon)
have taken advantage of the higher
speeds with marketing-friendly
language such as ‘ultra wide band’.
The question is whether this canbe extended to services beyond
the smartphone such as FWA
broadband.

Asia• It remains to be seen whether the
open RAN movement extends
from its roots in Japan (the whole
sector) and India (primarily Jio) toother Asian countries. Countries
with impending 5G rollouts suchas Thailand and Indonesia are aninteresting test-bed for open RAN
vendors trying to sell into countries
outside of Europe and the US.
GSMA Intelligence survey sentimentsuggests intentions are positive, but
proof points will come from actual
deployments, particularly whereoperators who have taken theplunge can report cost efficiencies.

101The three Ss

102

Considerations for the year ahead
Do mobile networks become
more or less energy efficientas 5G subscribers and traffic
increase?
• Initial indications are positive; energy
efficiency is improving, with a corereading of 0.17 kWh in 2022 per GB
versus 0.24 in 2021.
• According to GSMA Intelligence
research, 75% of operators believe
5G is more energy efficient over thelong term.

Can open RAN help operators(and suppliers) lower energy
consumption?

Does mmWave spectrum movebeyond its (primary) home in
the US?

• This will depend on the extent towhich datacentres use renewables andimprove power efficiency, given that
open RAN is a software technology
at heart.

• mmWave spectrum is being usedby some groups in Europe and the
GCC states, particularly for FWA
broadband, reflecting its advantages
in terms of total cost of ownership.
However, mid-band spectrum is likely
to carry the majority of 5G traffic.

103

GLOBAL MOBILE TRENDS
Five key takeaways
5G in 2023
The digital consumer in the 5G era
Mobile network automation
The mobile edge and network slicing
API monetisation
Satellite and non-terrestrial networks
The enterprise verticals story
Private wireless networks
The three Ss

ESG and thedrive to net zero
From CSR tostrategic priority

104

TOPIC OVERVIEW

ESG and the drive to net zeroWhy it matters

The road to net zero

• Operator commitments to net zero
• Timelines and pathways• Impact on operator strategy

Transition pathways
to renewables• The changing profile of energy usage (benchmarks)• Renewable grid access• PPAs and other means of access

The enablement effect onvertical industries• 5G and IoT impact on decarbonisation of key industries• The link with digital transformation• Revenue versus environmental impact

The circular economy• Reuse of network equipment and devices• Holistic process: design to end of life
• Revenue versus environmental impact

The broader ESG picture• How to think about ESG in telecoms• How it should be measured• Consensus versus inevitable variation

Regional perspective

Considerations aheadESG and the drive to net zero

WHY ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) MATTERS IN 2023

The green agenda is now
an environmental andbusiness imperative
Environmental

Financial

Reputational

1.5°C in jeopardy: The central
goal of the Paris Accord in 2015,
which has continued to guide
subsequent COP objectives, will
not be met under current national
net-zero timelines. Some industries– including telecoms – are steppingup, in some cases to fill a void inpolicymaking.

Stubborn costs: Energy costs stillaccount for 20–40% of network
opex. This puts further pressure on
cashflow in an already low revenue
growth environment.

Changing consumer value sets:
Consumers are increasingly
prioritising green credentials
and commitments in purchasing
decisions. Retail and marketingstrategies need to focus onsustainability as a selling point,beyond traditional competition inquality, price and coverage.

Operator systemic role: The
contribution from operators to net
zero is to become zero-carbon
businesses themselves but also
to help other industries reduce
their carbon footprint, which has abigger impact overall.

Wholesale shocks and volatility:
Volatility in the wholesale energy
markets in the wake of the war
in Ukraine has underlined theimportance of long-term supply.
B2B revenue: Decarbonisation
is a hidden selling point in how
operators sell 5G to enterprises.

Investor pressures drive change:
Many investors now include hardand fast ESG requirements as partof their asset allocation decisions.

105

ESG and the drive to net zero106

The road to net zero

Putting your money where your mouth is• Operators accounting for around
65% of market share (by revenue)
have committed to the Science
Based Targets initiative (SBTi) carbon
reporting framework. Just under
50% have committed to the UN
Race to Zero pledge. The numbers
are slightly lower in terms of shareby subscribers (see chart) as someof the largest groups are in India – ahigh-volume, lower-ARPU country.
However, telecoms is among theleading industries in terms of climate
commitments.
• Global averages mask significant
regional variation. Operators in
Europe remain at the vanguard. Thosein the US are also at the forefront,
alongside some in Asia (with India lessappreciated in particular). Africa, Latin
America and parts of Southeast Asia
are further behind.

Europe sets the pace as operators globally commit tomajor climate measures
Global market share of committed operators (subscribers)
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
SBT
Operator HQ domicile
US/Canada
EuropeRace to Zero
India

Asia (excluding India)

Carbon-neutral target

Other regions
Source GSMA IntelligenceESG and the drive to net zero

107

Transition pathways to renewables

Progress in many regions, but work to do elsewhere• Various data points allow us totriangulate an estimate of how
far the telecoms sector has come.
Findings from a GSMA Intelligenceenergy benchmarking study suggest
renewables now account for 9% ofenergy consumption among operators.
• There is considerable variation byregion. European operators use
renewables for the majority (70%)
of their energy, with the US thenext highest at around 40%. Africanand Asian groups (including China)
are at less than 10% – well below
the prevailing grid availability forrenewable power.
• Power purchase agreements (PPAs)
have helped European and US
operators with energy access. These
are needed in much higher numbers
in other regions to bridge the gap andcomplement grid supply.

Europe and US lead on renewables, with others playing catch-up
Renewable share of telco energy purchased• The substitution of fossil fuels forrenewable sources of power is key to
any journey to a zero-carbon business.

80%

Europe

70%

60%

50%
US
40%
Latin America
30%

20%

10%
China

Sub-Saharan Africa
MENA
0%
0%

10%

Asia (excl. China)
20%

30%

Note: data based on survey responses from mobile operators in October 2022
representing approximately 50% of global market share (by subscribers)

40%
50%
60%
70%
Renewable energy share of grid power (average reading)
Source GSMA108

ESG and the drive to net zeroThe enablement effect on vertical industries
Green tech is good business too• In telecoms, this is referred toas the ‘enablement effect’. The
carbon savings enabled by 5G,
IoT and other digital technologies
for enterprise clients of mobile
operators can run to multiples of an
average operator’s carbon footprint.
• On average, around 40% of therequired CO₂ savings from thefour largest carbon industries(accounting for 80% of global
emissions) can be enabled by mobile
services and digital technology overthe period to 2030.

Mobile and digital technologies can drive around 40% of the CO2 reductions
required for the largest industries to stay on track for net zeroCO2 reduction (Gt)• As well as reducing energy use andcarbon emissions from their direct
operations, operators can help
partners cut their emissions throughtechnology.

10.0

8.0

6.0

4.0

4.2 Gt46%

2.0

2.8 Gt65%

1.4 Gt16%

2.2 Gt43%

0.0
Manufacturing

Power and energy

Emissions reductions needed to hit net zero by 2030

Transport

Buildings

Mobile and tech’s contribution
Source GSMA Intelligence, Carbon Trust and Exponential Roadmap

109

ESG and the drive to net zero

The circular economy

Back to the three Rs of reduce, reuse and recycle• The circular economy is a growing
offshoot of the sustainability
movement.
• In its broadest sense, a circular
economy is built from the ground up to
recycle and repurpose manufactured
goods, saving waste and associatedemissions.

• Applicability to telecoms is mostobvious in smartphones and otherdevices. Unfortunately, recycling rates
are very low; even the most advanced
markets record only 10–15% of total
volumes as recycled or repurposed.

End-of-life scenarios for a mobile• To improve those rates, a numberof drivers are required, involving
manufacturing standards, a vibrantsecondary market for metal recycling,
and incentives for consumers to tradein devices (e.g. discounts on upgrades).

Even in advanced economies, only 10–15% of handsets arerecycled or repurposed
Estimated mobile recycling rates

Stored at
home
Given away

Second-handmarket12–15% Europe

Repurposed

WHAT
HAPPENSTO
DEVICES?

Collected
by MNO

15% USA

16% Japan
1–2% China

Landfilled orincinerated

Repaired

Recycled

Source GSMA Strategy Paper for Circular Economy

8% Australia

Source GSMA Strategy Paper for Circular Economy

110

ESG and the drive to net zero

The broader ESG picture

Measurement and reputational value• While climate and energy issues have garneredsignificant attention, the ESG movement isbroader, incorporating social and governancereforms in terms of how companies operate.
• In the telecoms sector, this could, for example,
include requirements for suppliers to havesustainable procurement practices, or a certain
threshold for gender composition at theexecutive/board level.
• Reporting is key as it drives transparency.
Climate disclosure is now commonplace acrossthe industry. Of the largest operators worldwide(covering 68% of market share), more than 95%
report on CO2 emissions, with 84% reporting on
waste management.
• There is less uniformity on reporting how
affordable data plans are, and policies related
to e-waste. Increasing these reporting rates will
depend on investor pressures to do so, consumer
attitudes, and reaching a consensus on accepted
KPIs.

Status check: operator reporting on ESG metrics
Percentage of mobile operators reporting on topic

96%

96%

92%

84%

Scope 1 and 2
emissions

Energyconsumption

Digital inclusion
initiatives

Waste
management

60%

52%

20%

52%

Scope 3emissions

Renewable energy
consumption

Affordability ofdevices or data plans

E-wastemanagement

Note: data includes operators accounting for 68% of global market share

Source ESG Metrics for Mobile, GSMA

GREEN COMPUTING:
TOP TEN BEST PRACTICESFOR A GREEN DATA CENTER
Reducing energy consumption is good for business and for the environment. Supermicro is a leader in designing systems
that minimize environmental impact by increasing power efficiency and reducing E-waste – which lowers TCO.
Learn about the actions that telco and data center operators can take to reduce their carbon footprint.

Find the report at www.supermicro.com/datacenter-reportto learn the top 10 Best Practices that you can take.

ESG and the drive to net zero

Regional perspective
EuropeAfricaAsia• Europe is the regional leader
in terms of the extent to which
operators are committed to climate
goals and reporting on thosethrough recognised internationalframeworks. This has been helped
by a high level of political buy-in,
good supply of renewables, and theprioritisation of energy efficiency in
5G network builds.

• African operators face a challenge
as the supply of renewables
is heavily constrained in mostcountries – partly because of poor
grid supply and partly due to a lackof power purchase agreements(PPAs). The reliance on diesel puts
pressure on costs. However, there
is strong buy-in among mobile
operators to improving energy
efficiency in Africa by leveraging
innovations in the RAN and core to
reduce power consumption.

• Asia is a mixed region in termsof energy performance. For
example, India has made serious
commitments on renewableenergy at a national level, which
is seemingly being emulated bymajor operators in terms of netzero commitments. China remains
the largest market to hold out on
a 2050 net-zero timeline. Given
the blurred line between industry
and state, this may constrain
operators in being more ambitious
than they otherwise would be – apotential drag on the pace at which
the overall telecoms sector’s CO₂
footprint reduces.

112

ESG and the drive to net zero

113

Considerations for the year ahead
Do net-zero commitments spreadsouth and east?

Can operators effectively ‘sell’energy benefits as part of 5G?

Does ESG become avaluation driver?

• Attention is gradually turning towards
emerging markets for climate
commitments.

• This represents a key competitive
differentiator, but one that is currently
undersold.

• Acceleration will depend on accessto renewable energy supplies morethan any technology efficiencies. As
average renewable supplies accountfor less than 10% of total energy on thegrid in Africa, Asia and China, this is a
5–10 rather than 1–2 year story.

• Manufacturing, transport, power andbuildings account for 80% of global
CO2 emissions. These industries
are prime candidates for the 5G
opportunity. Energy savings could be
used as a USP against cloud groups,
vendors and others vying for a slice ofspend on digitisation.

• Whether ESG criteria are formallyincorporated into valuation models like
discounted cash flow remains to be
seen. Regardless, investor pressures
have clearly shifted to invoking ESG
as a means of influencing company
behaviour. Expect more to come on
the circular economy and net-zerocommitments for companies yet todo so.

ESG and the drive to net zero

Two lineslide title

Lead authors

Authorsgsmaintelligence.com• BulletFig title• Tim
BulletHatt

Anshu Goel
Lead Analyst,
Digital Consumer Research

Head of Research and ConsultingPeter Jarich
Head of GSMA Intelligence

114@GSMAi

Units etc.

Christina Patsioura
Lead Analyst,
IoT & Enterprise Research
Kalvin Bahia
Principal Economist
Matthew Iji
Director, Forecasting & Modelling
Pablo Iacopino
Head of Researchand Commercial Content

Source Source