5G technology and fiber-to-the-home should pull the cart for the telecom sector

More fiber optics and the arrival of 5G networks, these are the next-generation networks that providers are focusing on. In addition, fixed and mobile networks are merging, called convergence, while offering services is becoming increasingly important.

By: Dimitri Reijerman

That is what Tim Poulus, analyst at Telecompaper and speaker on the Telecom Infrastructure Event. At Telecompaper, he and his colleagues try to put their finger on current developments in the market. During his lecture, he will delve deeper into the rise of next-generation networks. And that is happening fast, says Poulus: “In the mobile domain, we are now talking about 5G, and in a few years, perhaps already about 6G. In the fixed domain, we are mainly talking about fiber optics. But cable operators are also busy switching to new technologies. Docsis 3.1 is coming, for example.”

In the Netherlands, telecom providers can set up a 5G network from next year after having acquired the frequencies to be auctioned. Initially, it will be a multi-band auction on the lower frequency bands: 700, 1,400 and 2,100 MHz. In 2022, the 3.5 GHz band should become available once the satellite listening station in Burum has been relocated.

Already 5G in 2020

“The day after the auction, we will have 5G nationwide on the 700MHz band,” predicts Poulus. “It is a matter of pushing a button. T-Mobile is probably the first. KPN sees 5G primarily as a business solution that is useful for certain innovations. I wonder if that is correct, if this is not too pragmatic an approach.”

To make 5G possible, fixed fiber connections are necessary, according to Poulus: “5G requires a fine-meshed fiber network,” he says. “If you already have a lot of fiber, you can relatively easily install 5G antennas.”

The major providers have already 'fibre-opticised' a considerable part of their fixed connections, but there are differences. “I think you can say that it was not smart of KPN to stop the construction of fibre-optic for a few years. They offered VDSL as interim technology, but still lost time. But Ziggo also waited with investments in Docsis 3.1 technology. They keep each other somewhat in balance in this way.” He also points out that there are other fibre-optic providers, including Eurofiber and T-Mobile with its takeover of Tele2.

Convergence economic necessity

What all providers experience is that the convergence between fixed and mobile continues. That is also necessary from a business economics perspective, says Poulus: “KPN, for example, currently has five core networks. They are looking at possibilities to merge these five core networks into one core network. That will yield KPN considerable cost savings.”

Finally, Poulus wants to point out another development in the telecom market: the rise of services that benefit from higher speeds. “You can see the rise of new video on demand services, such as HBO Max and Disney. The market has been opened up by Netflix. But the profit is still made on the connection, the services are often still bait.”