The communications industry is entering a period of significant transformation as connectivity and digital transformation initiatives continue to expand across key verticals. Three key trends that have emerged since the second half of 2021 illustrate the severity of the challenges we face. Last December, the 3GPP standards body adjusted the priority and scope of 5G Release 18, the first release to be designated "Advanced," which will support more device types and use cases. Furthermore, the trend towards network virtualization has significantly altered the way wired and wireless networks are deployed, reshaping business models. Finally, with the third year of 5G deployment drawing to a close, the need to align with next-generation technology (6G) is becoming increasingly apparent and critical. Are these trends truly that important? We agree, for the following reasons.
Continuously evolving standards, 5G SA, private networks
The initial vision for 5G included scaling, improving reliability, and enhancing network performance, enabling businesses to use mobile networks in innovative ways. Now, in early 2022, most production networks are only just beginning to evaluate the features of Release 16, while 3GPP will finalize Release 17 this year. Work on Release 18 is expected to begin in March.
Key themes at this year's Mobile World Congress include FinTech, the Internet of Things (IoT), and the Industrial Internet of Things (IIoT). These vertical industries are just beginning to integrate mobile communications into their core operations, and the features specified in Releases 16 and 17 will help them achieve their 5G vision. This coincides with the scaling up of 5G Standalone (SA) networks, with much of the early implementation residing in private networks. This shift reflects a significant change in how enterprises prioritize and deploy mobile networks.
Virtualization
The virtualization of mobile core networks, which began with 4G systems in the mid-2010s, has rapidly evolved to the point where not only do all traditional network equipment manufacturers have virtual 5G SA core networks, but hyperscale providers are now also entering the market. AWS recently announced that it will offer Network-as-a-Service (NaaS) through its Citizens Broadband Wireless Service (CBRS), indicating that mainstream hyperscale data centers are beginning to enter both the network infrastructure and communications services markets simultaneously. This complements the existing edge computing service partnerships between hyperscale data centers and communications service providers (CSPs). Part of the early vision for 5G includes extending virtualization to the now fully implemented Radio Access Network (RAN). RAN virtualization is closely linked to the Open RAN standard. Last December, both the UK and Japanese governments set targets to adopt or at least seriously evaluate the nationwide adoption of Open RAN.
This type of government involvement initiative is not limited to interoperability; it is also shaping the capabilities of the next generation of wireless networks.
6G is just around the corner
Formal 5G systems are only just beginning to explore capabilities beyond enhanced mobile broadband, and industry, research institutions, and governments have already begun collaborating to power 6G. Regions and countries that have historically led the wireless field have government-sponsored 6G programs, with some even showing direct government involvement. For example, the U.S. House of Representatives submitted an unprecedented bill to the U.S. Senate to establish a "6G Working Group" to investigate how to design and deploy 6G technology. For the past two years, Keysight Technologies has been working with industry leaders and academic institutions on 6G research and has witnessed increasingly rapid progress.
What does this mean for 2022? The convergence of these three indicators signals the industry's entry into the next exciting phase of 5G. First, vertical industries will begin exploring 5G and making new demands on technologies and services. As industries begin to adopt new applications or use cases, network performance and security will play a crucial role in this transformation. Virtualization will not only provide more flexible networks but will also bring about significant changes in business models, and new players will emerge in the network equipment and network operations sectors. Version 16 capabilities will move from the nascent stage to the mainstream, and we will see the "other two corners" of the 5G capability triangle playing a vital role in the industry.
We are delighted to be a part of this, as we work globally in areas such as RF performance, wireless network security, Open RAN, data center testing, network deployment, and network visualization. We look forward to seeing the innovations of 6G—from the convergence of communications, sensing, and positioning to the use of artificial intelligence throughout the network. 2022 is poised to be another landmark year for the networking, wireless, and communications industry as a whole, a year that will witness significant transformation. Keysight Technologies is ready and prepared.
About Keysight Technologies
Keysight Technologies provides advanced design and verification solutions designed to accelerate innovation and create a secure, connected world. While focusing on speed and precision, we are committed to enabling deeper insights and analytics through software. Throughout the entire product development cycle—from design simulation, prototyping, automated software testing, manufacturing analysis, to network performance optimization and visualization—Keysight Technologies brings forward-thinking technologies and products to market faster, fully meeting the needs of enterprises, service providers, and cloud environments. Our customers span global markets including communications and industrial ecosystems, aerospace and defense, automotive, energy, semiconductors, and general electronics. In fiscal year 2021, Keysight Technologies' revenue reached $4.9 billion.
