5G deployment issues

• The United States has only limited capability when it comes to the infrastructure of the currently installed wireless base that will be used as a framework for future 5G systems.
• The characteristics of the millimeter waves and their propagation pose a challenge to the MNO industry. The technology is vulnerable to environmental factors such as humidity, rainfall, and fog, and has major range limitations. T-Mobile stated in 2019 that the millimeter wave technology will not be scalable beyond dense, urban environments.
• Pessimists see the capital expense required and lack of new use cases as major current drawbacks in 5G deployment. They believe MNO underestimate the challenge of leveraging 5G for new business models and think that investment in IT enablement can be delayed without a significant downside.
• Due to the current drawbacks in the high-frequency spectrum range (which is severely affected by obstructions such as trees or buildings), carriers will need to deploy several small cellular radios (cells) around any areas that get a 5G signal.

Security

• Experts alerted that the use of 5G components manufactured by untrusted companies could potentially expose U.S. entities to security risks such as the introduction of malicious software and hardware, component flaws, and counterfeit components caused by sub-standard manufacturing processes and maintenance procedures. 5G services, hardware, and software provided by untrusted entities can increase the risk confidentiality compromise of the network assets.
•  British intelligence issued a report flagging suspicions about the security of Huawei's 5G system. This reinforces the view that the Chinese company shouldn't play a role in providing equipment for commercial wireless systems in the United States.
• Although U.S. networks are secure, data traveling overseas through untrusted telecommunication networks is potentially at risk of manipulation, disruption, interception, and destruction.
• Since 5G will use more components than previous wireless network generations, the proliferation of 5G infrastructure can allow for more attack vectors. Given the challenge, the effectiveness of 5G's security enhancements will be decisive to the widespread implementation and configuration of this new technology.
•  Internet of Things (IoT) introduces additional security concerns, as it requires more vulnerable devices to be connected to mobile networks. While the devices don't currently pose a threat individually, the synchronicity of action between them could impact mobile network availability if potential security breaches are not properly addressed.
•  Mobile malware is another security concern for MNOs, with multiple capabilities ranging from SMS SPAM, generation of DDoS attacks (Distributed Denial of Service), and data-theft.
•  Sprint's customer data was hacked twice in 2019. Such breaches have made MNOs realize that they need to protect more than just the data being transferred over their systems.

eSIMs (embedded SIMs)

•  eSIMs disrupt the telecommunications industry by allowing clients to purchase data connectivity from whomever they choose. They allow for dynamic over-the-air service provisioning once a network is selected. The introduction of eSIM technology, paired with the possibilities that 5G brings, has enabled tech companies that are not telecommunications providers to compete with the telecoms of tomorrow.
• eSIMs are expected to offer a more open market and increased competition between telcos and MVNOs, as well as other tech companies looking to enter this market.
•  IoT adoption is being driven by the implementation of eSIM technology by removing one of the biggest roadblocks to cellular IoT deployments, which is the need to hold a SIM-bearing inventory for multiple SKUs and manage it over long distances. eSIM enables readily available connectivity and in-market localization, enabling scalable IoT deployments.
• MNOs will need to revamp their business models with the introduction of eSIM technology.

Market saturation

• The technology advancements introduced over the last few years have pushed MNOs to face increased competition and price pressures to cope with the market saturation that derived from the introduction of new industry players. Operators have created targeted offers for specific segments (youth, military, elderly, immigrants) and have been forced to innovate to keep up with these changes.
• For example, Republic Wireless developed Bonded Calling, a service that uses cellular to improve the quality of Wi-Fi calls.
• Operators are embracing digital transformation by becoming more flexible, efficient, and customer-centric in their operations and cost structure.

MVNOs (Mobile Virtual Network Operators)

• 5G will enable a new generation of MVNOs by giving companies like Snap a readily available ability to sell network services to their subscribers. While MVNOs, startups, and tech businesses purchase the technology that enables them to offer these services such as 5G broadband in bulk from traditional MNOs, their proliferation poses a challenge to MNOs with increased levels of industry competition.
• Unlike AT&T’s $3.5 billion roll-out cost for 5G, MVNOs don't need to invest to enter the industry and start competing for customers.
• To cope with the changes, MNOs such as T-Mobile U.S., Sprint, and AT&T operate in the MVNO via sub-brands acquired through in-market takeovers.
• The space has low barriers to entry and several different ways in which an MVNO can operate: full MVNO, light MVNO, branded reseller, and MNO sub-brands.

Vaster 5g Availability

• Driven by business and consumer demand, governments and carriers alike are pushing the deployment intending to roll out 5G networks widely. One of 5G's key benefits is its low latency. A virtually lag-free connection can allow for several applications, such as self-driving cars that can communicate with each other in real-time.
•  2019 was the first year in which 5G comprised more than half of operators' capital expenditures in North America, which reflects the evolution from LTE to 5G.
•  AT&T and Verizon activated 5G networks in several U.S. markets since late 2018. Sprint joined in 2019, and T-Mobile announced plans to roll out nationwide 5G coverage by the end of 2020. In 2019, T-Mobile launched coverage in 30 US cities, AT&T in 22 cities, and Sprint in 9 half-cities.
• This level of network construction and upgrade requires large capital amounts. U.S. carriers are expected to spend an estimated $275 billion on 5G infrastructure, including over $100 billion on new 5G antenna sites.
• As per GSMA Intelligence, North America will be a global leader in 5G adoption, with a projected subscriber amount of 345 million by 2025. Over one-quarter of global mobile revenue derives from North America, which is the largest market for mobile in the word.
•  Rural areas will likely be the last to have services available, as infrastructure is still lacking.

OTT partnerships and value-added services

• Regional OTT (Over-The-Top) video players are finding new ways to penetrate local markets through strategic partnerships with MNOs. As mobile surpasses TV in being the main growth channel for content delivery, MNOs are starting to lay a central role in service distribution.
• Mobile has become a widely accepted medium for video content delivery. Access to high-quality mobile streaming is growing, and the surge in bundling deals and MNO partnerships incentivize viewers to consume content on their mobile devices. While 79% of households still pay for traditional satellite or cable services, cord-cutting rates are increasingly accelerating in the United States.
•  MNOs are becoming increasingly important as a vital marketing and sales channel for content services and premium OTT video, and are expected to keep supporting the growth in OTT video consumption over the next 10 years. This is expected to increase the use of mobile data plans and mobile-first consumption through higher-margin visual entertainment offerings.
• This trend is expected to keep growing, as more MNOs bundle or subsidize content at no additional charge to encourage customer retention and provide additional value within their service plans. Value-added services are increasingly important as operators are transferring over to cloud computing and data storage services.
• Between 2011 and 2017, pay-TV operators and telecoms closed 332 deals with OTT service providers. These tend to focus on different strategies, such as service integration into plans, commercial agreements with revenue sharing, marketing as a brand and sales tool, white-labeled or co-branded offerings, and carrier billing arrangements.

Security

• In 2020, network security will become increasingly important. Encryption is expected to evolve from a niche sector to a more pervasive technology.
• MNOs are taking the lead in identity authentication applications. AT&T, T-Mobile, Verizon, and Sprint collaborate on a Mobile Authentication Taskforce, which introduced the ZenKey ™ mobile authentication platform, a service designed to connect mobile network subscribers and service providers with easier and secure authentication, registration, and transaction authorization protocols while eliminating the need for passwords. Eliminating the reliance on passwords as main identity authentication can reduce fraud.
•  Mobile Connect, an initiative developed by the four largest U.S. wireless carriers, implements multi-factor authentication combining the carriers' proprietary, network-based authentication capabilities with other methods to verify a user's identity, delivering a seamless experience that can help drive rapid customer adoption and scale.
•  Network-based authentication has several advantages over alternative methods. Mobile Connect-aligned solutions can verify a user's identity using information only an MNO possesses; such as cross-referencing an attempted purchase with records of previous online behavior, or SIM location history.
• Mobile Connect is supported by 57 operators in 30 countries, which makes it available to 3 billion consumers across the globe.

IoT deployments

• According to Grand View Research, the cellular IoT market in the United States will triple in size, reaching $2.3 billion by 2025.
• Verizon is developing ThingSpace, a web-based platform designed for managing IoT deployments. By 2018, 14,000 developers were registered on this platform.
• MNOs are moving into the "smart home" and IoT services space, providing internet connectivity for an increasing array of devices, while also processing and analyzing the data they collect.
• Industry experts estimate that about 21 billion connected devices are collecting and sending data across the network to IoT applications in 2020. This presents a great opportunity for MNOs, which have seen a steady decrease in mobile voice and data revenues over the last few years.
• On February 7, 2020, US Cellular announced the launch of its LTE-M IoT network, which covers over 90% of its cell sites nationwide and is planned to cover the entire LTE network within the second quarter of the year. The LTE-M network is a secure, reliable, and cost-effective way for businesses to connect IoT devices in urban, rural areas, and hard-to-reach environments.
• The IoT market is a dynamic one for MNOs. To stay competitive, they'll need to build capabilities that enable them to offer services at a low cost. IoT and M2M devices are still behind, providing MNOs with an ARPU of $2 to $5 per month, as opposed to the $41 to $49 that corresponds to voice and data services in the USA.

1. Lightreading

•  Lightreading is a considered to be the leading research-led telecoms news and events digital media platform. It employs a team of journalists and editors across the US, Canada, and Europe.
• Lightreading is an independent research and events portal and also hosts annual events that are specifically tailored to online communities such as Security Now, Connecting Africa, and Broadband World News.

2. VanillaPlus

•  VanillaPlus is a Europe-based telecoms IT magazine. It published articles regarding billing, OSS, customer care, service, and revenue & fraud management.
• It also shares reports and articles regarding major technological changes that are projected to impact the communications market, and provides guidance for "CSPs and Enterprises on how they can drive operational efficiencies, prevent revenue leakage and increase profits."

3. Capacity Media

• After many years of publishing content and running conferences, Capacity Media is now an established and trusted source of critical information when it comes to global telecom leaders.
•  Capacity Media consists of Capacity Magazine, Capacity Conferences, and International Telecoms Week (ITW), and is known to provide detailed insight and analysis for the overall telecom community.

4. RCR Wireless News

•  RCRWireless has been the leading wireless industry news providers since 1982. The publication delivers insights and analysis, catering to mobile and wireless industry professionals, as well as decision makers, policy-makers, and investors.
•  This publication is largely focused on the US market as it aims to deliver daily coverage on VoLTE, test and measurement, RF testing, PIM testing, mobile carriers, small cells, heterogeneous networks, NFV, SDN, wireless infrastructure, DAS, telecom software, cloud computing, big data analytics, densification, mobile backhaul and BSS / OSS.

5. Opensignal

• According to Opensignal, the independent body is the "global standard for understanding the true state of the world’s mobile networks based on measurements of real user experience."
•  Opensignal is able to deliver answers regarding the real-world experience that an operator’s customer is having. The independent body offers a range of solutions that are able to provide answers and support different teams within the operator, all backed up by Opensignal's data science for unprecedented accuracy.

6. Location based services providers

• For signaling data, MNO professionals turn to location based services providers to help them filter, stream and manage millions and millions of events each day within their network.
•  Location based services providers will publish content on how to mitigate risk and prevent fraud, and articles regarding how to effectively use location based services to help mainly corporate customers with their problems.

7. Telecom regulators

• MNO professionals will consult press releases and regulations published by telecom regulators which usually operate as national regulatory authorities.  
• Telecommunications regulatory agencies are the governing bodies that work in the interests of consumers to "ensure that the services delivered match the advertised services as well as protecting consumers from malicious or dangerous content online."

Research Strategy: