The 5G is no longer a mere "G". It is a revolution! The combination of speed, latency, resiliency, and density it delivers creates the adequate conditions for immersive video, real-time video analytics, industrial and mobility systems intelligence, automation and robotisation, among many other changes.
It is a productivity revolution with a very important economic impact, estimated at 1.300 billion euros globally, and 35 billion euros in terms of national GDP by 2035, according to the Roland Berger study “Harmonious development of the digital society in Portugal: the right 5G auction structure is critical”. It cuts across the different sectors of economy and society, with an equally relevant environmental impact. According to the Ericsson study “ICT’s potential to reduce greenhouse gas emissions in 2030”, it is estimated that 5G will contribute to a 15% reduction in global emissions by 2030, while increasing productivity in agriculture up to 25%, and up to 20%-30% in industry.
As to the telecommunications sector, 5G is also a revolution in terms of technology, operational model, and supply. The impact is resonant and transversal, necessarily accelerating digital and environmental transition.
Step by step, let us take a closer look at the impact on the industry value chain.
Regarding the access network, there is, from the outset, an initial coverage effort that becomes increasingly important as traffic and the number of connected objects increases. Therefore, the challenges in terms of proper configuration and, above all, of optimisation, which is a permanent endeavour, are critical. 5G requires more intelligence in the way the network interacts with each object, in order to enable a differentiation on how it addresses different needs. This makes the network even more "alive" and demanding in terms of design and maintenance. Hence, realising the full potential of 5G requires a novel network planning approach, namely: the public component will evolve to deliver greater performance and resilience in a context of rapid evolution of standards; the implementation of private networks for specific uses, e.g., industrial or healthcare, ought to comply with specific requirements, maintaining interoperability with the rest of the ecosystem; the non-terrestrial networks that ensure continuity and universal coverage - standard available from 2025 - will become crucial elements to coverage; and the creation of edge-clouds with computing and local hosting, critical to ensuring 1ms latency for critical applications like autonomous driving, will become part of access.
Alongside said effort, the virtualisation of network functions and the exposure of services are taking place at the platform level, enabling their real-time configuration and modification. The greater plasticity of the 5G when compared to previous generations is one of the most differentiating elements, due to its ability to adapt to the needs of each customer. Given that an "explosion" of equipment and solutions is expected, it is critical to be able to safely, but quickly, integrate this portfolio dynamic. The inclusion of all this potential and added complexity into monitoring systems is also vital. Likewise, we will have to optimise much of the current management and continuous improvement, since, even if desirable, it would be impossible to scale up the necessary skills.
Concerning systems, 5G creates the need but also the opportunity to accelerate the entire digitisation process. In order to subscribe services straightaway, as soon as one wishes to use them, a lot must change across the classic supply chain. The entire chain must adjust to a "real-time" mode: from user decision to network service. This implies the challenge of harmonising subscription models for services that are as atomic as necessary, while preserving the integrity of the whole, without generating an increase of operational complexity. This requires plasticity, elasticity and speed throughout the entire chain and a complete migration process to the cloud. It also implies very agile development and operation models with the possibility of making infra-daily deliveries. Finally, it comprehends a new security design philosophy, in which federation and intelligence replace the perimeter "walls", and a very powerful, intersecting, and available analytical support that enables fast learning and automation.
The supply also undergoes a revolution inherent to the new potential of the chain, and the customers' new demands, used to low-effort and high-satisfaction digital processes. For a better and faster adaptation to the needs of customers, it must disaggregate itself from the outset. This granularity that will support the adaptation to more demanding use cases, like playing instantly, with more bandwidth and less latency, or starting remote surgery at a precise moment. Likewise, a broader and less stable ecosystem of third-party platforms and equipment requires more agile and flexible connections. Finally, taking advantage of the full potential of 5G means having very fast development and prototyping models in which communication integrates with the same speed.
Sales processes are not isolated from this reality. They will comply with an omnichannel approach. The customers expect and demand continuity of experience across the various channels, as well as intelligence and effort savings in diagnosis and recommendation processes. All of this represents a large analytical endeavour, but also an equal or greater effort in terms of communication, training, and support for business channels. Channels will have to master more use cases and more responses. It will certainly be necessary to create an environment and a process for accelerated and continuous learning. Finally, and probably most importantly, particularly regarding corporate and institutional customers and their high potential use cases, there is a significant need for shared understanding and collaboration between the customers and their operator, which implies a new business approach that is much more advice-giving, as well as reinforced skills to understand the business challenge and turning it into a viable solution with value for both parties.
Finally, the service will also have to change radically to become more proactive, intelligent, and invisible, as required. We must constantly monitor all relevant parts of the chain. We must act proactively and extend action to all relevant channels, in order to take full advantage of additional features, such as video. Similarly to what happens during the sale, the customers expect the continuity of their experience and the operator's visibility of their own experience. The tendency to tolerate fewer questions that we should know how to answer will increase. The customer will focus on quick problem-solving, while accepting automatic interactions that are fast and satisfyingly intelligent. All of this implies strong learning and continuous improvement efforts.
As to the operator, 5G is a revolution in the entire value chain, which combines exponentially greater potential with the increasingly higher demand of digital customers. NOS is aware and preparing itself for this massive challenge, towards becoming the leader of the 5G era in Portugal.