In June 2024, Omdia surveyed decision-makers about the core networks of CSPs in North America, Europe, and Asia & Oceania. Results are published in Omdia’s Service Providers Core Networks Survey report, which we discuss here.
See also: Service Providers Core Networks Survey – 2024
Omdia view
Summary
85% of respondents expect 5G core network spending to increase in 2025, and the top reasons for adopting the 5G core are to enhance the customer experience, security, competitive market conditions, automation efficiencies, cloud native benefits, and web-scale operations.
Funding is a significant barrier in this economically challenging environment. Even so, the respondents recognize the benefits of a cloud native architecture, including the intriguing possibility of a SaaS offering for core networks.
Enterprise network slicing is an attractive market, but CSPs are not interested in delivering isolated private networks alongside their cellular networks.
Over half of the respondents expect network function (NF) vendors to leverage and embed AI capabilities, eventually using network data analytics function (NWDAF) capabilities.
Service provider survey
In June 2024, Omdia surveyed decision-makers and influencers about the core networks of communication service providers (CSPs) in North America, Europe, and Asia & Oceania. Respondents came from both advanced and emerging markets. Those from the advanced markets represented the larger group; therefore, the results better reflect the views of service providers in these regions.
This research focused on the CSPs’ plans, priorities, and expectations in North America, Europe, and Asia & Oceania for 5G SA, network slicing, integration and automation, private networks and network slicing, AI, and 6G. Our survey questions included the following topics:
- When and how will you deploy a 5G standalone (SA) core?
- How do you expect your 5G core capex to change in 2025?
- What drivers and challenges do you face with 5G SA?
- What are your views on the multi-vendor core network?
- What are your views on network slicing?
- When and how will you offer private network services?
- What would you use “as-a-service” on a public cloud?
- What are the top AI use cases you want?
- When and how will you deploy 6G?
5G SA rollout
Last year, the regional views varied widely, but the cumulative views across the regions converged tightly this year, indicating a remarkable consistency. The shift to the regional curves by about one year to the right suggests a delay due to difficulties encountered or strategic decisions by some to slow investment.
Nevertheless, their medium and longer-term views still hold, with 85% of the respondents expecting a 5G SA by end-2025 and 95% by end-2027.
Figure 1: Cumulative 5G SA deployment expectations among respondents
Source: Omdia
You can read the full report (see Further reading), which includes survey demographics and more insights into service provider 5G SA plans.
Appendix
Further reading
Service Providers Core Networks Survey – 2024 (October 2024)
Core Market Tracker – 2Q24 Analysis (September 2024)
Core Market Tracker – 2Q24 Data (September 2024)
Market Landscape: Core Vendors 2024 (July 2024)
Author
Joe Hoffman, Principal Analyst, Mobile Infrastructure