Metaverse work will continue behind the scenes
Metaverse will not become mainstream next year, but investments will continue despite continued financial woes for the tech industry. The year ahead will primarily focus on standardization. Ookla plays an active role in defining the network requirements as part of the Metaverse Standards Forum (MSF).
We expect new devices to launch in 2023 and beyond at a lower cost than Meta’s Quest Pro, priced at $1,499. Apple is not participating in the MSF as it follows its usual walled-garden approach. There is talk of an Apple device that will give the metaverse device ecosystem a boost too. But for the metaverse to become real, it will have to be more than just about devices.
Metaverse is about creating a virtual world, with Meta, Microsoft, and Nvidia all working on creating them. 2023 will see more telco players jumping on the metaverse bandwagon and including it as part of their strategic roadmap.
Operators’ M&A activities will heat up
In Asia and Europe, companies facing challenging economic times will try to merge, with regulators having the last word on whether they can. M&A activity heated up across the Asia Pacific region recently, with deals on the table across several countries such as Thailand, Malaysia, Taiwan, and Indonesia but potentially also in Japan and Hong Kong.
Mergers and acquisitions should continue in Europe as well, as we discussed in our recent article, with recent examples including the agreed joint venture between MasMovil and Orange in Spain, Iliad’s recent bid for Vodafone Italy, and Vodafone and Three UK talks to merge.
In Asia, Telenor and Axiata were allowed to merge their Malaysian operations, while Thailand still awaits regulatory approval. European operators will closely follow whether Orange and MasMovil will consolidate in Spain. If they succeed, others in Europe will follow in 2023.
5G SA will power enterprises
The majority of 5G networks thus far are 5G Non-Standalone (NSA), which still uses 4G core to support enhanced mobile broadband and FWA use cases while also providing significant capacity increases.
Evolving to 5G Standalone (SA) brings additional service differentiation possibilities such as URLLC, network slicing, and edge computing. In the future, 5G SA will also deliver time-sensitive networking for high-precision devices. When RootMetrics® measured the performance of T-Mobile’s 5G SA vs NSA in Las Vegas, it found that T-Mobile’s 5G SA network delivered speeds over twice as fast as its speed on NSA 5G.
According to GSMA Intelligence as of Q3 2022, 31 operators had launched 5G SA networks, with a further 11 expected by the end of 2022. In total, 123 operators from 55 countries have launched or demonstrated intent to launch 5G SA networks.
Recently, Singapore covered 95% of the country with 5G SA, with operators focusing on developing innovative services for enterprises supported by encouraging regulation from the government and the regulator.
Private networks growth will continue
Private mobile networks play an important role in broader digital transformation and will only continue to gain traction. As enterprise digitization continues to gain momentum, countries are looking to private networks to address Industry 4.0 objectives.
A dedicated spectrum for private mobile networks has already been allocated to industry players in France, the U.S., Germany, Japan, and the UK. We have commented on how the private networks landscape is developing in Europe, making a case for private networks in India.
According to GSA, at the end of June 2022, 889 customers were deploying private mobile networks across 70 countries. Increasingly, these networks are using 5G and 5G SA. However, the 5G device ecosystem has yet to mature, so most of these networks are still 4.9G. The availability of industrial-grade devices depends on the standardization of 3GPP Releases. The industrial chipsets, based on Release 16, are scheduled to come to market in 2023. As a result, mainstream adoption of 5G solutions will likely happen later in the year.
Furthermore, once available, Release 16 5G industrial features (reliability, low latency, etc.) will need to be tested in partnership with industrial OEMs to help to convince them of the enhanced scope of capabilities of 5G for industrial use cases. As such, it will be some time beyond 2023 when 5G private networks will start to scale.
Link to this article on the Ookla website.
