2025 Outlook: Progress in 5G Advanced
Wireless network operators in the United States and around the world are likely to begin moving towards 5G Advanced standards in 2025 and beyond.
But this does not mean that the transition to new network standards will be smooth sailing.
Challenge
Operators face various challenges in providing 5G Advanced based services to consumers.
Firstly, many technical specifications included in 5G Advanced assume that network operators have already deployed a standalone (SA) version of 5G, which supports advanced features such as network slicing. But it is difficult for operators to deploy SA.
Most wireless operators around the world first launched 5G using non standalone (NSA) technology because it is easier to implement.
In addition, upgrading to 5G Advanced requires at least some additional expenses from wireless network operators. But they strongly oppose this approach, as so far, 5G deployment has not significantly increased profits.
Nevertheless, competition among telecommunications network operators remains fierce, especially among 5G operators, with increasing signs that most operators will resume network spending starting from 2025. 5G Advanced devices and software may become a part of the expenditure growth.
5G technology
The 3GPP standard association completed most of the work for 5G Release 18 in the summer of 2024, and now 5G equipment suppliers can use it. This version officially introduces the brand name “5G Advanced” into the wireless industry. 3GPP released the first batch of 5G specifications (without “Advanced”) in its 15th edition in 2017. Prior to this, the group adopted a similar upgrade strategy in the 4G LTE era, launching “LTE advanced” in 2011 and releasing the 10th batch of specifications.
Ericsson boasts on its website about 5G Advanced: “In addition to other technologies, the 5G Advanced system will use AI/ML as a key component, supporting cutting-edge technologies such as Extended Reality (XR) and Low Capacity (RedCap) devices, while improving network energy efficiency
At the beginning of last year, Qualcomm outlined a series of technologies it hoped to achieve through 5G Advanced, including improved MIMO and reduced energy consumption.
But when and how to implement version 18 will depend on wireless network operators worldwide. Like all 3GPP specifications, each operator can choose the technology they want to deploy in the specifications.
T-Mobile officials told Fierce Network in October that the company plans to launch its first 5G Advanced service by the end of this year.
This is not surprising, as T-Mobile has always been committed to maintaining a leading position in the 5G field. It is the first operator to launch the SA version in the United States and has recently introduced advanced 5G services such as network slicing.
Meanwhile, 5G Advanced suppliers such as Ericsson may see this technology as a way to transform their business models.
Business model
Ericsson CEO B ö rje Ekholm said at a recent investor event, “We will sell more software in the future, and the software content of our products will increase. This will structurally increase gross profit margin, but may slightly damage revenue structurally. We are in a transitional stage. It is difficult to specify now
Ericsson is already showcasing its so-called “programmable” network, which is the core concept behind the company’s launch of 5G Advanced.
In July of this year, Huawei showcased an “interference sensing” feature as part of its 5G Advanced product portfolio. Developed by Optus, an Australian company, it can detect interference between cells and take remedial measures to improve performance. The average user throughput measured by Optus increased by 22%.