BEREC says that the technical features of 5G-based services aim to meet the specific needs of vertical industries bringing new use cases and customised solutions. It also implies changes at the network layer, such as the virtualization of some of its elements.

BEREC explains that these developments may entail significant changes in the dynamics of both demand and supply. In this report, BEREC analyses some of the fundamental elements of 5G and identifies the potential regulatory issues. BEREC focused its analysis on three fundamental elements: (i) the main protagonists in the 5G ecosystem; (ii) 5G value propositions; and (iii) cost structures and revenue streams.

BEREC underlines the role of traditional market players in the rollout of 5G networks and in fostering demand of 5G based products. However, the need for both IT and telecommunications in the delivery of 5G products may entail new roles and new participants as 5G evolves and reaches maturity. These new roles include new equipment suppliers, system integrators and managed service providers (MSPs), cloud network providers and 5G verticals. New market participants may specialise in platform operation as traditional players undertake network operation. Additionally, the design of specialised products for verticals is expected to lead to different partnership combinations among all providers.

In terms of 5G value propositions, the Report considers the benefits that 5G technical features bring to the provision of new and/or enhanced products, including improved electronic communications services (ECS), 5G private networks, multi-access edge computing (MEC), enhanced network functionalities relying on cloud-native architecture, Open RAN and system integration. The Report also considers demand, with the growth of Business to Business (B2B) products and solutions for verticals.

BEREC has also considered the costs involved in the deployment and operation of the network as well as the costs for verticals to adopt the new technology. As for revenues, there are two main sources: (i) enhanced user ECS, especially Internet Access Services (IAS); and (ii) digital transformation of vertical industries.

As for regulation, there are various concerns, mainly related to the return on investments needed for the deployment of 5G and ways to ensure competition. BEREC notes that the 5G ecosystem is still at an early stage and considers that it is still too early to conclude which 5G regulatory measures should be adopted. BEREC recommends that regulators monitor developments in the market and keep communicating with stakeholders. To access the Report, click here.