The Impact of 5G and Next-Generation Networks on Mobile Opex Spending

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"Without a sharp reduction in operating costs, the 5G business case will be hard to make."

Mobile network opex has been stubbornly resistant to reduction in recent years, but it is essential to the 5G business case that it falls. This report argues that no single solution will achieve operator targets of up to 33% opex reduction by 2025, but sets out a combination of tactics which could deliver savings on this scale in the 5G era.

The report answers the following questions:

  • How can 5G, including its broader architecture, affect operating expenditure for operators?
  • What are the technology choices that will have the greatest impact?
  • When do we expect these technology and architecture changes to affect opex levels, and what will the regional patterns be?
  • What factors may prevent operators from achieving their opex reduction targets?
  • What is the most realistic timing to achieve an efficient operating cost base? Will slower movers benefit more than early adopters in certain scenarios?

Breakdown of targeted 5G opex savings

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Table of Contents

  • Executive summary
  • Analysis and recommendations
  • Virtualisation will play a role if implemented as part of a far-sighted strategy to change the capex/opex ratio
  • Automation needs to be ‘brutal’ to reduce the opex of physical assets
  • Disruptive MNOs show the way to a more radical model of sharing
  • About the author and Analysys Mason

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