Network function virtualisation (NFV) and software-defined networking (SDN) allow operators to manipulate the network flexibly and programmatically at speeds far surpassing those of manual interactions with physical boxes. Installing or upgrading a piece of network software, even in a remote location, requires the execution of a few lines of code, and the automation is replicable across hundreds and thousands of installations with minimal overheads and delays. This approach is summarised in Figure 4.
Figure 4: Automation and virtualisation enables operators to maximise the agility of their 5G networks. Source: Analysys Mason, 2020
This transformation is not something to be undertaken lightly. Operators in the vanguard of digitalisation, such as AT&T, Telefónica and Telstra, have recognised the scale of the challenge and have developed ambitious, multi-year programmes to introduce cloud platforms, digitalisation and IT-centric processes to their networks. These operators are likely to be well-prepared to take advantage of the capabilities of 5G from day one because they will have already transformed their infrastructure, processes and service delivery. Their programmes consider 5G to be an important future element and a way to maximise the impact of the new platforms.
However, it is not too late for smaller or less-ambitious operators (or those with longer timelines for 5G) to lay the foundations for an automated, cloud-based and IT-centric network. Some of the strategic decisions are technological, such as the choice of virtualisation infrastructure, while others are commercial, such as whether to deploy certain capabilities on an in-house telco cloud or a third-party platform.
Some of the most difficult decisions relate to organisational structure and skills. As single-purpose, vertically integrated appliances are replaced with virtual network functions (VNFs), and increasingly, with cloud-native network functions (CNFs), the specialist engineering and network operations skills of the past will gradually be replaced with methods and expertise that come from the cloud and data centre world. For example, DevOpsbased techniques are being enhanced by AIOps solutions to deliver more-advanced continuous integration and continuous development (CI/CD) techniques. AIOps enhances older techniques to support more-automated development, thereby helping to automate the development of automations.
The combination of these IT-centric strategies will have a significant impact on TCO, even for a pre-5G operator, and will create the conditions required to derive the maximum efficiencies when 5G is fully deployed. Figure 5 shows that four of the top-ten contributors to reducing network operating costs (according to Analysys Mason’s survey of mobile operators) relate to automation and virtualisation. Indeed, the single biggest contribution is expected to come from automating significant elements of the planning, optimisation and maintenance of the end-to-end network, while enabling it to adapt dynamically to changing service requirements and traffic conditions.
Figure 5: Most important contributors to reducing operating costs in the 5G era, 2019. Source: Analysys Mason, 2020
