5G network is designed to connect virtually everyone and everything together including machines, objects, and devices – offers diverse service possibilities, each with unique connectivity characteristics and underlying business models. 5G networks feature lower latency, massive network capacity, increased bandwidth, and a more uniform user experience to more users. In addition, whether it’s advanced spectrum frequency bands or the introduction of advanced air-interface optimization technologies, they all create more complex rollouts and optimization challenges. Further, revenue sources are not clear and hence, CSPs are investing in networks with the highest possibility for ideal return on investment (ROI). But as compared to CSPs, flat/ decreasing ARPU is making it more important. So, now let us investigate the 3 CAPEX challenges to planning profitable 5G and network ROI along with Reliable 5g tester, 5G test equipment, 5g network tester tools and Reliable 4G Testing RF drive test software, Cellular LTE RF drive test tools & equipment in detail.
When it comes to the development of the CAPEX allocation process, it varies from one CSP to another as they are facing common challenges.
- The network’s total cost of ownership (TCO), time to market (TTM), and ultimately network ROI are the three different procedures on which network design is structured.
- Whether it’s about network performance or lessening poor QoE for the future, churn hotspots, and optimizing expected revenue growth, Communication Network Providers (CSPs) need more visibility. This will help them to enhance their planning to take better decisions for business outcomes thereby making various network investment decisions.
- To serve your customers, you need to place cell sites and observe the performance of fiber backhaul costs, which could affect the economics of your network rollout. This will enable the lifecycle of the network as per changing circumstances.
The best part is that with a 5G network, there are lot of business data that can enable you to plan better, but such things were not previously possible. Some of the data include service demand, subscriber density, customer behavior, and equipment TCO (in which all data are available from inside your business today) and now these data can be combined and predicted easily. In addition to this, some other data called market context statistics such as population density and household income will improve your investment in different areas to achieve churn and network ROI. And here comes CAPEX which is a simple synopsis of a very complex process that intelligently finds and uses from multiple sources of data – will allow MNOs to map 5G traffic and revenue potential. With CAPEX, both CTO and CMO organizations can work in an agile, so that they will understand the impact of their combined investments quickly and take decisions on future business performance to get the ROI.
Furthermore, with heatmaps, you will get to know network capacity, potential revenue, and population density which means your network planning becomes exponentially smarter by incorporating data points with the weather, road planning, power demand, and more. The prediction business will be becoming more reliable, thanks to AI it learns more about the network. You can plan two things, either to consider the ungrouped nature of network architecture as virtualization or multi-vendor networks as realities with a more dynamic nature of the vendor ecosystem. Moreover, you should respond to the ongoing adaptation of Smart CAPEX to the cloud that will enable planning systems to operate from a single cloud environment.
There is no doubt that 5G can affect the global economy and achieve network ROI as the network (5G) is designed to deliver peak data rates up to 20 Gbps based on IMT-2020 requirements, deliver much lower latency for a more immediate response, and provide much more network capacity by expanding into the mmWave spectrum. Therefore, 5G needs continuous monitoring and testing, and RantCell is the best reliable network measurement tool to choose from. RantCell is not only easy to use but also scalable, saving you money and automatic report generation in real-time through its web-based dashboard. This will help 5G provide an overall more uniform user experience so that the data rates stay consistently high even when users are moving around.