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5G in the Middle East and AfricaAdvanced MEA service providers and markets aim to be among global leaders in 5G

2 TMT intelligence informa © 2018 Ovum. All rights reserved.

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Part 1: MEA 5G market dynamics .......................... 3

MEA set for some of the world’s first 5G launches ...............................................3

5G for national development ............................3

Part 2: 5G deployments in MEA ............................. 5

Gulf markets and South Africa aim for 5G lead ..................................................5

The UAE ........................................................ 5

Saudi Arabia ................................................. 5

Qatar ............................................................. 6

South Africa .................................................. 6

Vodacom sets out 5G plans ...............................7

Part 3: 5G services and applications in MEA ......... 8

5G use cases .....................................................8

Quick wins with 5G broadband .........................9

5G evolution and new use cases .....................11

Integrating 5G into smart cities ......................11

Gulf mega-events will give impetus to 5G ......11

Part 4: Recommendations for 5G development in MEA .................................................................. 12

Recommendations for 5G network development, by operators and their vendor partners ...............................................12

Recommendations for regulators and governments....................................................13

Recommendations for the industry as it develops 5G applications and services ...........13

Contents About the author

Matthew Reed

Matthew Reed is the Practice Leader for Ovum’s Middle East and Africa regional research. He is responsible for the data and written research for the region, which includes detailed coverage of local markets. His research interests include operator strategy within the MEA region as well as network and regulatory developments.

Matthew is a regular speaker and chair at industry conferences in the region. He also regularly comments on industry developments for local and international media.

3TMT intelligence informa© 2018 Ovum. All rights reserved.

Part 1: MEA 5G market dynamics

MEA set for some of the world’s first 5G launchesThe Middle East and Africa (MEA) region is usually a follower rather than a leader in the launch of new technologies. But with 5G, things will be different.

Operators in the UAE, Saudi Arabia, and Qatar will be among the first in the world to launch 5G commercially, starting with 5G fixed-wireless broadband (FWB) services from as early as the end of 2018, and adding 5G mobile services as 5G smartphones become available from mid-2019. These early launches of 5G will put Gulf operators and markets on a par with some of the most advanced operators worldwide.

South Africa is preparing for 5G too, though launches there are expected to come later than in the advanced Gulf markets, and progress with 5G in South Africa will depend on factors such as the allocation of spectrum. South Africa’s two biggest mobile operators, Vodacom and MTN, both have 5G trials underway, and Vodacom says it will be ready to launch 5G in South Africa as soon as it has the necessary spectrum. In August 2018, Vodacom said it had set up a commercial 5G service in Lesotho in southern Africa to initially deliver FWB services to two enterprise customers. Two other operators in South Africa, Comsol and Rain, are also planning to launch 5G FWB services.

5G for national development The early moves toward 5G in the Gulf build on the fact that these markets are already advanced in their deployment and adoption of network technologies, with some having among the highest levels of high-speed mobile and fixed broadband penetration in the world. Additionally, several Gulf countries are pursuing ambitious national development projects, with plans such as the UAE’s Vision 2021 and Saudi Arabia’s Vision 2030 seeking to improve public services and encourage economic diversification, particularly through the expansion of the knowledge- and technology-based sectors.

Officials in Saudi Arabia and the UAE say that the early adoption of 5G, which will provide faster broadband connections and enable new consumer, enterprise, and public-sector applications, will help to advance their development plans. Some major events scheduled to take place in the region – particularly the Expo 2020 exhibition in Dubai in the UAE and the soccer World Cup in Qatar in 2022 – are also expected to provide a stimulus, and showcase, for 5G services. Similarly, Saudi Arabia’s latest new city project, Neom, is expected to employ new technologies, such as 5G, from its earliest stages. Neom, which is to be built in the northeast of Saudi Arabia, is intended to lead the country’s efforts to develop a knowledge economy, as part of the Vision 2030 plan.

Both the UAE and Saudi Arabia have set up bodies to facilitate the progress of 5G. The UAE has established a National Committee for 5G, with three sub-committees focusing respectively on spectrum, network developments, and verticals. Saudi Arabia has formed a National 5G Task Force to bring together representatives from government, operators, equipment vendors, and potential user groups.

Of course, the MEA region is highly diverse, and while some of its telecoms markets are very advanced, others are less so. Operators in Egypt, one of the most populous countries in the region, only launched LTE as recently as 2017. Iraq’s national operators have only progressed as far as 3G. In less advanced MEA markets, it might take some time to develop the business case for 5G. The regulatory preparations – such as the allocation of spectrum – could take time too.

The ITU is to make official decisions about 5G spectrum at its World Radiocommunication Conference 2019 (WRC-19), which will be held in Egypt in late 2019. In the meantime, the industry is already making practical decisions about spectrum, and in MEA it is planning to use the 700MHz, 3.4–3.8GHz, and 26GHz bands for 5G. However, many countries in the region, particularly in sub-Saharan Africa, have not yet completed the switchover to digital TV broadcasting that is necessary to free up spectrum in the 700MHz band, and which was supposed to be finalized by mid-2015.


Nevertheless, the emergence of some early 5G deployments in MEA could spur the deployment of 5G more widely in the region. Ovum expects that 5G will have been launched in 10 MEA countries by the end of 2023. There will be 26.8 million 5G subscriptions in MEA by end-2023, forecasts Ovum. But 3G and, increasingly, 4G will continue to be the dominant technologies for mobile broadband in the region over the coming few years (see Figure 1).

0200400600800

1,0001,2001,4001,6001,800

202320222021202020192018

3G 4G 5G2G

Sub

scrip

tions

(mill

ions

)

Figure 1: MEA mobile subscriptions forecast by technology, 2018−23

Source: Ovum


Part 2: 5G deployments in MEA

Gulf markets and South Africa aim for 5G leadAdvanced Gulf markets, notably the UAE, Saudi Arabia, and Qatar, are expected to be the first in the MEA region to launch 5G, as well as among the first in the world. Major operators in South Africa are also preparing to launch the first 5G services on the African continent (see Figure 2).

The UAE The UAE is typically at the forefront of technological developments in the region, and that is the case with 5G. The UAE’s telecoms regulator, the TRA, has assigned spectrum for initial 5G deployments and set up a series of committees to bring together parties with a stake in 5G development. The UAE’s two telecoms operators, Etisalat and Du, are preparing for early launches of 5G. Etisalat says that it plans to launch commercial 5G FWB in the UAE toward the end of 2018, with mobile 5G to follow in 2019 as 5G smartphones become available. Du plans to deploy 5G network equipment in 2018 and offer commercial 5G services from early 2019.

Saudi ArabiaSaudi Arabia sees 5G as an important part of its Vision 2030 national development plan, and the Kingdom is pressing ahead with preparations for 5G. “Saudi Arabia is determined to be a world leader in 5G to take early advantage of its benefits,” commented the Kingdom’s Minister of Communications and Information Technology, Abdullah Al-Sawahah, in a recent statement.

Saudi Arabia set up a National 5G Task Force in early 2018 to bring together government, operators, equipment vendors, and potential user groups, and in May 2018, the CITC, Saudi Arabia’s telecoms regulator, awarded test-and-trial 5G licenses to Saudi Arabia’s three national mobile operators – STC, Mobily, and Zain. The test-and-trial licenses allow the operators to run pilot 5G deployments using spectrum in the 3.6–3.8GHz band. STC, Saudi Arabia’s biggest operator, has set up a 5G trial in the eastern

Lesotho: Vodacom said it launched Africa’s first commercial 5G service in August 2018, delivering 5G FWB to two enterprise customers.

UAE: Etisalat plans to launch 5G FWB by end-2018.

South Africa: Vodacom and MTN have 5G trials underway.

Qatar: Ooredoo planning commercial 5G FWB by end of 2018.

Saudi Arabia: 5G trials underway; commercial services expected by end-2018.

Figure 2: Selected MEA 5G plans and deployments

Source: Ovum


city of Al-Khobar. The CITC is expected to convert the 5G test-and-trial licenses into long-term awards of 5G spectrum which will allow the Saudi operators to start offering commercial 5G services.

QatarIn Qatar, Ooredoo says that as of May 2018, it has a live network based on the Non-standalone New Radio (NSA NR) standards, which were agreed by industry body the 3GPP in December 2017 as the first standards for 5G. Ooredoo aims to have 100 5G sites in Qatar’s capital Doha by late summer 2018, which will give coverage of most of the city. The operator is using spectrum in the 3.5GHz band for its initial 5G deployment, though the CRA, Qatar’s telecoms regulator, is also planning to allocate spectrum in the 700MHz band for 5G, and is considering using the 26GHz band for 5G as well.

Initially, Ooredoo will use 5G to provide FWB, as CPEs for FWB are the first type of 5G device that will be available. The operator has conducted a trial of 5G FWB services with Qatar Airways. It expects that 5G mobile devices will become available from the end of 2018, starting with tablets, followed by dongles and MiFi units. Ooredoo’s operations in Kuwait and Oman also plan early launches of 5G. In Kuwait especially, competitive dynamics and high levels of mobile data traffic support the case for deploying 5G.

South AfricaSouth Africa’s two biggest operators – Vodacom and MTN – are preparing to launch 5G, while mobile data provider Rain as well as open-access network provider Comsol have unveiled 5G plans too.

However, both MTN and Vodacom say that they will need access to spectrum in the 3.5GHz band to deploy 5G in South Africa. In the meantime, MTN has revealed that it is running what it says is South Africa’s first 5G customer trial, a 5G FWB service at the headquarters of the technology company, Netstar. MTN’s customer trial with Netstar was announced in November 2018 and is using spectrum in the 28GHz band.

Vodacom will be ready to launch 5G in South Africa once the necessary spectrum is made available, according to CEO Shameel Joosub. In August 2018, Vodacom launched what it described as Africa’s first commercial 5G service, for two enterprise customers in Lesotho, where Vodacom does have access to 3.5GHz spectrum.

In October 2018, Rain – which has rolled out an LTE-Advanced network in urban centers in South Africa over the past 18 months – said that it also plans to deploy 5G. Rain will use spectrum in the 3.6GHz band to roll out and launch 5G services during 2019, starting with FWB. Comsol also plans to launch commercial 5G services in South Africa by the end of 2019, using spectrum in the 28GHz band.


VODACOM SETS OUT 5G PLANS

Ovum interviewed Nicholas Naidu, Managing Executive for Technology Strategy, Architecture & Innovation at Vodacom, about the operator’s plans for 5G.

What are Vodacom’s plans for 5G? “It is important for us to launch 5G in South Africa to remain at the forefront of global digital innovation. [But] in South Africa we are facing a spectrum crunch right now. South Africa has not yet completed the digital dividend migration, which was due to be completed in 2015 according to an ITU deadline, so the 700MHz and 800MHz spectrum bands are currently unusable for mobile communications and remain unlicensed in South Africa.

“Although the 2.6GHz band is usable right now, it is also not yet licensed. One of our biggest issues is gaining access to new, sub-1GHz frequency bands like 700MHz and 800 MHz, which can be used for cost-effective coverage expansion and deep indoor penetration of 4G networks, as well as access to some of the higher-frequency bands like 2.6GHz for faster speeds and capacity. We have to invest a lot more in capex to keep up with the growth in data because of the difficulties in accessing new spectrum.”

When does Vodacom expect to get access to spectrum for 5G? “We’d like it to happen as quickly as possible to enable South Africa to remain at the forefront of digital innovation and not get left behind. We believe the opportunity exists to allocate and use 5G spectrum in South Africa even before the digital migration is completed, as key 5G spectrum bands are not dependent on digital migration.”

Aside from the issues over spectrum, how are Vodacom’s preparations for 5G progressing?“We have already embarked on modernizing our radio network so that it is 5G ready. The aim is that once we get the spectrum, we can quickly launch 5G services. We have also invested significantly in our transport network to ensure that we have fiber to support the faster 5G speeds.”

How will 5G fit into Vodacom’s broader technology plans?“Our position is that we will use a combination of 3G, 4G, and 5G to provide mobile broadband access to our customers in future. Our firm view is that we still have lots of mileage on our existing 4G network, as well as the evolution of it, to meet the needs of our customers now and in the future. We believe there are still huge amounts of value that we would like to see coming out of our 4G network, and that can be used to meet the needs of our customers for now. Ideally, we would like to leverage our 4G capabilities and the evolution thereof as we move into the 5G era. Key however to evolving the speed and capabilities of our 4G network will be to gain access to additional spectrum such as the 700MHz, 800MHz, and 2.6GHz bands.

“Initially, 5G is expected to be for very niche and targeted deployments; we do not expect there to be a massive network rollout at least in the first few years. As 5G is expected to be about 10 times more efficient than 4G due to technologies such as massive MIMO (multiple-input multiple-output antenna systems, which improve capacity and coverage) and larger bandwidths, it will help us to meet the expected mobile broadband demand in a much more cost-effective manner in the early years. 5G technology maturity coupled with appropriate use cases and market demand will determine Vodacom’s plans for new 5G applications.”

What are the plans for 5G in Vodacom markets beyond South Africa?“There’s no reason why we wouldn’t consider 5G in our other markets, but as and when the use cases will support the deployment, and when the required spectrum becomes available. Africa has a heavy dependency on mobile communications because of low fixed-line penetration. And that makes a compelling use case for 5G for enhanced mobile broadband or as a more cost-effective alternative to last-mile fiber access.”

Note: As well as South Africa, Vodacom has operations in DRC, Kenya, Lesotho, Mozambique, and Tanzania.


Part 3: 5G services and applications in MEA

5G use cases5G is intended to fulfill three broad use cases, which the industry categorizes as enhanced mobile broadband (eMBB); ultrareliable, low-latency communications (URLLC); and massive machine-type communications (Internet of Things [IoT], see Figure 3). But 5G technology is being developed in phases, and the use cases for 5G will also evolve over time.

The specifications for NSA NR were agreed by standards body the 3GPP in December 2017 as the initial phase of the 3GPP’s Release 15 and the first standards for 5G. Standalone New Radio standards were finalized in June 2018 to complete Release 15. The standards for 5G core networks will come with the 3GPP’s Release 16, which is due to be completed toward the end of 2019.

The first phase of 5G – the deployment of 5G New Radio, based on Release 15 – will give expanded capacity and greater spectral efficiency, but only a limited uplift in performance compared to LTE. The next set of 5G standards, Release 16, will define 5G core networks, which will enable new capabilities such as ultralow latency and network slicing. Release 16 is also expected to include specifications for 5G IoT. Release 15 and Release 16 will together represent the complete set of 5G specifications, which the ITU is expected to adopt as its IMT-2020 standard.

The first deployments of 5G in MEA, as in other regions, will be based on Release 15, and consequently the main initial use cases will be for FWB, eMBB, and a limited range of industrial applications. A wider range of 5G use cases will become available with Release 16. Ultralow latency will enable mission-critical applications such as autonomous vehicles, and network slicing will allow operators to provide virtual networks for specific functions. Additionally, 5G-based IoT will become possible when IoT is integrated into the 5G standards.

Network slicing will enable multiple virtualized and logically self-contained networks to be deployed on a common network infrastructure (see Figure 4). With network slicing, it will be possible to adapt functionality to the specific requirements of a service. Typical application areas are expected to include public safety, industrial automation, and healthcare.

• More capacity, higher speeds, supports more users

• Uses licensed and unlicensed spectrum

• Incorporates technologies such as massive MIMO

• Examples:• Mobile/4K video• Rich media and entertainment• Augmented reality• Home entertainment, small

office/home office (SoHo) (fixed wireless access)

Enhanced mobile broadband (eMBB) including fixed

wireless access

Ultrareliable, low-latency communications (URLLC)

Massive machine-type communications (IoT)

• Supports ultralow latency transmission (<1ms)

• Supports highly resilient communications with redundancy

• Offers reliable device-to-device communication

• Examples:• Industrial automation• Autonomous vehicles• Telemedicine

• Evolves out of narrowband LTE (eMTC/NB-IoT)

• Low complexity, low energy• Follows the ultradense, small cell network model

• Eventually adds new waveforms and architectures (e.g. multi-hop mesh)

• Examples:• Smart grid• Smart cities• Health monitoring

Figure 3: Three major use cases for 5G

Source: Ovum


Alongside the move toward network virtualization and network slicing, operators are expected to implement Multi-access Edge Computing (MEC), or distributed cloud computing at the edge of the network. This allows applications and content to be created, hosted, and processed locally, and will support use cases that require ultralow latency, such as augmented reality (AR), virtual reality (VR), autonomous vehicles, industrial systems, and IoT.

The allocation of spectrum will also be a factor in the development of 5G services, as operators will need to use sub-1GHz bands if they are to provide the wide-area coverage that is required for mission-critical or ultralow-latency communications services.

In MEA, as in other regions, the first providers to deploy 5G will start with a limited set of 5G services and applications, with more sophisticated offerings being added as the technology is developed to enable new functionalities and use cases (see Table 1).

Quick wins with 5G broadbandThe plans of MEA operators are in line with the expected evolution of 5G technology and services. Initially, 5G will be used in MEA for FWB and eMBB, with other applications following as both the technology and business plans develop.

Mobile broadband

Mobile broadband slice

Mobile IoT slice

Mission-critical IoT slice

Massive IoT

5G network

Communication, internet

Logistics, agriculture, climate

Automobile, factory

Mission-critical IoT

Figure 4: Network slicing scenarios in 5G

Source: Ovum

Table 1: MEA 5G use cases

Fixed wireless broadband (FWB) The first use case for 5G in MEA will be FWB, for the enterprise and residential markets.

Enhanced mobile broadband (eMBB)

5G-capable smartphones will start to become available in the second half of 2019, paving the way for eMBB services such as 3D video and UHD video for use in the consumer, enterprise, and public sectors.

Massive IoT Smart cities in MEA are expected to adopt 5G-based IoT for transport management, safety and security, the delivery of public services, and the monitoring and management of utilities and natural resources. There will also be applications in the management of sites and infrastructure in major MEA industry sectors such as oil and gas, mining, and transport and logistics. There will also be uses in health monitoring.

Mission-critical services The ultra-reliable low latency that will come with full 5G standards will enable “mission-critical” services in MEA, such as advanced robotics in sectors such as the extractive industries. Low latency will also facilitate advanced telemedicine, autonomous vehicles, and consumer and enterprise services that incorporate augmented reality (AR) and virtual reality (VR).

Source: Ovum


Although a few markets in the Middle East have very high rates of fixed household broadband penetration, the rate for the Middle East as whole was 46.7% at end-2017, lower than in many other major world regions (see Figure 5). The rate of fixed household broadband penetration in Africa was just 7% at end-2017, the lowest among major world regions.

"The quick win for 5G in terms of use cases is the rollout of 5G for fixed broadband," said Saleem Al-Balooshi, chief infrastructure officer at Du, in a recent video interview published by Telecoms.com, the industry news website run by Ovum's parent company, Informa. "The broadband capabilities of 5G – the high throughput, ultra throughput – will expedite the rollout for home services, providing triple-play services for home users.”

Looking ahead, Al-Balooshi expects new use cases for 5G to develop in three fields: automation, big data, and the deployment of sensors. Du already has some projects underway in these areas, though not yet based on 5G technology. One of these is the Hassantuk project, as part of which Du is deploying sensors in buildings across the UAE for improved fire detection and emergency response. Du also played a leading role in developing Dubai Pulse, an open-data project and portal that is a key part of the Smart Dubai smart-city initiative.

Similarly, Vodacom expects that at the outset, 5G will be used primarily for broadband connectivity, with other 5G services to follow. “Initially, 5G in South Africa is going to be driven by enhanced mobile broadband,” says Vodacom’s Naidu. “If and when we do get access to spectrum, that will enable wider rollout, and then we can target new applications.”

Vodacom is keen to use 5G for services that have a social purpose. “Ideally, in South Africa we’d like to develop those use cases that have the maximum benefit for society,” says Naidu. “Use cases like telemedicine and e-education come to mind. Both leverage the efficiencies of 5G versus 4G for mobile broadband services.”

NORTH AMERICAEASTERN EUROPEWESTERN EUROPE

OCEANIA, EASTERN & SOUTHEASTERN ASIA

CENTRAL & SOUTHERNASIA

MIDDLE EAST

AFRICA

LATIN AMERICA & THE CARIBBEAN

7%

8%

67%

57%84%

41%

47%

88%

Figure 5: Fixed broadband household penetration by world region, end-2017

Source: Ovum


Vodacom, which is majority-owned by UK-based Vodafone, plans to draw on the 5G service plans of Vodafone and its operations around the world. Vodacom will study the 5G use cases being developed by Vodafone and aims to adapt those that are appropriate for the South African market. However, Vodacom expects that some of the more advanced uses cases linked with 5G, such as autonomous cars, will only become viable when both the 5G technology and the ecosystem for those applications are more fully developed.

5G evolution and new use casesAs 5G technology matures, its unique features – notably its high data rates and very low latency – are expected to enable a range of new applications and services. They will include applications that depend on very high bandwidth, such as ultrahigh definition video; services that require low latency, such as industrial robotics, commercial drones, autonomous vehicles, and remote surgery; and services such as AR and VR that need both high bandwidth and low latency. 5G will also significantly improve the performance of services that are currently delivered over 4G, such as mobile video conferencing.

In MEA, applications based on these more advanced 5G capabilities are expected to emerge in the health and education sectors, in energy and environmental management, in large-scale agriculture, in major industries in the region such as oil and gas, and in smart cities, initially in the Gulf but later more widely. The region’s transport systems also require increasingly sophisticated management.

Integrating 5G into smart citiesThe smart-city projects underway in the region, such as Smart Dubai, offer a platform for 5G services and applications such as autonomous vehicles, intelligent traffic systems, and energy and environmental monitoring and management. Dubai has set itself a target that autonomous vehicles should account for 25% of journeys within the emirate by 2030.

In Qatar, Ooredoo is looking into using 5G in smart-city developments such as Lusail, one of several underway in the country. Initially, Ooredoo’s smart-city services might be based on non-5G technologies such as NB-IoT and LTE-M, but the operator expects that 5G variants of these systems will be developed.

In Saudi Arabia, new technologies such as 5G – as well as applications based on 5G – will be central to the country’s flagship new city project, Neom. The Saudi government is expected to offer incentives to encourage the provision of 5G services in smart cities, as well as in sectors such as health.

Gulf mega-events will give impetus to 5G5G services, including demonstrations and trials of new use cases, are expected to be an important element of the Expo 2020 event in the UAE, which will start in October 2020 and run for six months. “By 2020 we will have significant rollout of 5G capabilities, and implementation of use cases,” said Al-Balooshi. At the Expo 2020 site in July 2018, Etisalat put on a demonstration of 5G technology and services including streaming video from drones to VR goggles.

Qatar too is set to host a major event – the soccer World Cup in 2022 – which is expected to represent a platform for 5G services as well as other new technologies. Ooredoo says that the 2022 World Cup will be one of the first big global events at which a substantial proportion of visitors will have 5G smartphones. And as a typical 5G device owner is likely to use much more data than someone with a 4G device, Ooredoo expects that it will need to provide massive 5G capacity in the stadiums.

Ooredoo plans to provide that 5G capacity in the World Cup stadiums with spectrum in the 26GHz band, which it will also use for small-cell 5G deployments in shopping malls as well as for enterprises and other large organizations. Additionally, Ooredoo is working with technology vendors to develop applications for the 2022 World Cup, such as AR apps to help visitors find their seats or to display player statistics.


Part 4: Recommendations for 5G development in MEA

Recommendations for 5G network development, by operators and their vendor partnersIn MEA as elsewhere, the deployment of 5G networks is part of a process. And in that process, operators should continue to develop their LTE networks so that they are ready for 5G, as well as after launching 5G.

Initially, most 5G launches will be localized and small scale, and 3G, 4G, and 5G networks will sit alongside one another. For some time to come, most mobile broadband connections in MEA will be based on 3G and LTE. In fact, the number of LTE connections in MEA will grow substantially over the coming few years, and LTE will account for 31.7% of mobile connections in the MEA region at end-2023, Ovum forecasts.

Also, as the first set of 5G standards – Release 15 – only cover 5G New Radio, the network layer for deployments based on Release 15 will be LTE. Operators should upgrade their LTE networks based on the latest standards for LTE – LTE Advanced and LTE Advanced Pro – because the features of these latest iterations of LTE, such as carrier aggregation and massive MIMO, will be carried over to 5G, and developed further in 5G.

Ovum also recommends that operators continue with LTE-based core networks until the 5G core network standards are defined in Release 16. Thereafter, migration to a full 5G core network will help to create the service-based architecture required to deliver new 5G use cases. Furthermore, operators should develop plans for MEC, because MEC will be an important enabler of some of the new capabilities that are expected from 5G, such as network slicing, as well as of 5G use cases that will depend on very low latency, including AR/VR, robotics, and autonomous vehicles.

A comprehensive or end-to-end approach to 5G network planning and deployment will put operators in a better position to develop advanced 5G capabilities such as network slicing. Most major telecoms vendors offer end-to-end 5G systems. Nokia, for example, launched its end-to-end network portfolio for 5G in early 2018, under the name Future X (see Figure 6).

Digital Value Platforms

External data sources

Open APIs

7 DynamicData Security

• New trust framework• Ecosystem sharing• Mass edge monitoring

Web, Enterprise & Vertical apps

Machine learning

Analytics

Dynamic customerservices

Access agnosticconverged core

Modular, decomposednetwork functions

Common data layer

Dynamic network optimization

Management &orchestration

SDN NFVMulti-operatorfederation

8

Augmented Cognition Systems6

Programmable Network OS5

Universal Adaptive Core4

Emerging Devices & Sensors

0 Massive ScaleAccess

1 ConvergedEdge Cloud

2 Smart NetworkFabric

3

Autonomously optimized coverage& capacity

Software-defined

Long fibers

Convergednode

Shortwaves & wires

Figure 6: Nokia’s 5G Future X network architecture

Source: Nokia


Nokia sees the move to 5G as a shift to a new paradigm of network planning and implementation, and with its Future X portfolio, Nokia has taken a holistic approach to the new network architecture that is required for 5G. For Future X, Nokia has drawn on the work of Nokia Bell Labs, its research and development unit, in artificial intelligence, network slicing, and across a wide range of network domains, to realize the full potential of 5G.

Recommendations for regulators and governmentsThe Gulf states that are expected to be the first in the MEA region to launch 5G have orderly plans for making spectrum available, but in much of the region, particularly in Africa, the sub-1GHz spectrum that will be required for wider deployments of 5G is not available. This is because many countries have still not finalized the switchover to digital TV broadcasting that the MEA region was supposed to complete by mid-2015, which is necessary to free up sub-1GHz spectrum for wireless broadband. As of February 2018, only 15 African countries had completed the digital switchover, according to a survey conducted for the African Telecommunications Union, though a further 17 African countries are expected to complete the digital switchover by 2020.

Governments and regulators in the countries that are behind schedule with digital migration should press ahead with that process. The authorities should also license spectrum on a technology-agnostic basis and include mechanisms for the trading and sharing of spectrum. Regulators across the region should work together to ensure that the use of spectrum bands and channel arrangements are regionally harmonized.

Recommendations for the industry as it develops 5G applications and servicesOne of the distinctive aspects of 5G is that it is expected to enable many new applications and services, some of which could transform the role of the operator, as well as entire industry sectors. However, in the main, those new applications and services, as well as the business models to sustain them, have yet to take shape.

Leading parties from across the industry, such as operators, technology companies, regulators, and customers, should work together to develop common frameworks that will allow the development of new applications and use cases. Each major use case or vertical, whether it is telemedicine or autonomous vehicles, is likely to require a specific group of partners. In some cases, national coordination might be sufficient, but in others, coordination might need to be regional or global.

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