Verizon’s new 5G monetization strategy ‘a losing battle’

Verizon this week slimmed down the number of its 5G pricing options. But the operator continues to position its speedy midband 5G network as a premium offering that customers need to pay extra for.

That, according to one financial analyst firm, may not fly in an industry where Verizon’s competitors aren’t charging extra for fast 5G.

“Trying to convince customers they have to pay extra for 5G UWB [ultra wideband] service is likely a losing battle as consumers are likely aware other providers will provide midband 5G for free,” wrote the financial analysts at KeyBanc Capital Markets in a note to investors of Verizon’s new pricing plans.

But the executive driving Verizon’s new 5G strategy argued that the operator is making the right decision by putting 5G at the heart of its new pricing gambit.

“It’s the network,” said Verizon’s new Consumer Group CEO, Sowmyanarayan Sampath, during a recent investor event, according to a Seeking Alpha transcript. He said Verizon’s “ultra wideband” 5G network is the operator’s “advanced network with all the bells and whistles.”

He added: “We have the best network on Earth.”

That, of course, is up for debate. Although Verizon continues to cite research showing the superiority of its 5G network, its rivals also make the same argument based on other competing research.

Broadly, Verizon, T-Mobile and AT&T are all in the midst of upgrading their 5G networks with midband spectrum in an effort to offer faster connections. But T-Mobile has enjoyed a headstart on the effort, and partly as a result is gaining customers amid an improvement in customers’ perception of its network.

Going from six to two

In its new announcement this week, Verizon said it would replace its previous pricing plans (dubbed “Mix & Match” and stretching across six options) with a new offering called “myPlan” that offers just two choices: Unlimited Welcome for $65 per month for one line of service, and Unlimited Plus for $80 per month for a single line of service.

The main difference between the two choices is that Unlimited Welcome doesn’t give customers access to Verizon’s “ultra wideband” 5G network and Unlimited Plus does. Unlimited Plus also offers 30GB of hotspot data and won’t cap or slow customers’ speeds. Unlimited Welcome presumably will include caps and throttles, though Verizon officials didn’t provide details. Update: After the plans launched, Stetson Doggett noted on Twitter that Unlimited Welcome will connect to Verizon’s “ultra wideband” network but will throttle speeds to 25 Mbit/s.

 

 

Verizon introduced two new pricing options that put 5G at the center of the customers' decision. Click here for a larger version of this image. (Source: Verizon)

Verizon introduced two new pricing options that put 5G at the center of the customers’ decision. Click here for a larger version of this image.
(Source: Verizon)

 

 

Verizon’s “ultra wideband” 5G network runs over its midband and highband, millimeter wave (mmWave) spectrum holdings, while its standard 5G network only works on its slower, lowband network. (The operator is poised to add more midband spectrum into its network later this year thanks to ongoing C-band clearing efforts.)

Verizon doesn’t specify exactly how fast its various 5G options are, but noted that its “ultra wideband” 5G network is 10x faster than its 4G network.

After customers choose which flavor of Verizon 5G they want, then they can add “perks” to their plan ranging from international data to additional hotspot data to the Disney+ streaming service. Each “perk” costs $10 per month. Verizon’s Sampath said Verizon earns an average of 30% gross margin on the sale of such perks.

The wider context

Verizon’s new pricing plans come at an important time for the company.

First, the company is struggling to reverse almost a year of customer losses. Those losses stand in stark contrast to the millions of new customers that T-Mobile, AT&T, Charter Communications and Comcast have gained during the same period.

In part to address the situation, Verizon CEO Hans Vestberg recently put Sampath in charge of Verizon’s consumer business after a short stint leading the company’s business division, among other executive shuffling. And the changes appear to continue to ripple through the company; Verizon’s longtime marketing chief, Diego Scotti, recently left the company, according to a Wall Street Journal report.

Sampath, for his part, appears to be making a big bet on Verizon’s new plans. He argued they would help rekindle growth among Verizon’s customer base.

Moreover, like other executives in the space, he predicted that overall growth in the wireless industry will slow in the coming months. He said he expects the industry to eventually grow by 5-6 million customers each year, rather than the 10 million-customer-per-year pace it’s been growing in recent years.

That slowdown might be a good thing for Verizon, he said. “It’s actually better for an incumbent like us to continue driving more pricing power in the market,” Sampath argued.

Some remain skeptical.

“Verizon’s new rate plans will raise prices for many consumers who opt to purchase add-on services,” wrote the KeyBanc analysts. “Both of these are likely headwinds for gross additions. Verizon’s basic pricing is still 2x+ the comparable offering of the Cable providers. Further, Verizon has been trying to convince investors of their ability to migrate consumers to higher tier rate plans, and while this could be ARPA [average revenue per account] accretive if multiple ‘perks’ are purchased, we don’t believe consumers receive incremental value or allow Verizon to capture incremental value.”

Click here to read the full article from Light Reading.

5 Must-Know Facts about 5G Network Security and Its Cloud Benefits

5G is a game changer for mobile connectivity, including mobile connectivity to the cloud. The technology provides high speed and low latency when connecting smartphones and IoT devices to cloud infrastructure. 5G networks are a critical part of all infrastructure layers between the end user and the end service; these networks transmit sensitive data that can be vital for governments and businesses, not to mention individuals. As a result, 5G networks are a prime target for attackers. For this reason, cybersecurity has been a key consideration in developing the 5G standard.

5G encompasses robust security features that guarantee confidentiality, integrity, and availability of network services and user data. In this article, Seva Vayner, Product Owner of Gcore’s Edge Cloud service, gives a deep dive into five of 5 G’s cutting-edge security measures. He also delves into the pivotal performance capabilities of 5G, accompanied by use cases that demonstrate how contemporary, cloud-native enterprises can leverage this transformative technology to their advantage.

What Is 5G

5G is the new standard of wireless networks that supersedes 4G (LTE). It is designed to connect people and devices at fast speeds with low latency.

The throughput of 5G far exceeds the throughput of 4G. In theory, 5G offers up to 20 Gbps in the downlink. In comparison, 4G only offers up to 100 Mbps, 200 times less than 5G. According to the 2023 CELLSMART survey, in practice, outdoor tests show that 5G operators in the US and EU provide close to 1 Gbps for the downlink channel.

As for 5G latency, it can be up to 10 ms (vs. 30 ms in 4G)—but only in a test environment. In reality, latency depends on many factors. For example, Ericsson’s tests in the US showed that 5G latency is typically around 20 ms but no more than 50 ms, which is virtually unnoticeable to humans. This is good news for gaming, where latency higher than 50 ms is critical.

5 Must-Know Security Features of 5G

Essential 5G security methods and technologies include encryption, privacy protection, authentication and authorization, network slicing, and network equipment security assurance. Let’s look at them in more detail.

1. Encryption

Encryption protects user data and network traffic from eavesdropping, interception, and tampering. 5G uses strong encryption algorithms such as AES, ZUC, SNOW 3G, and HMAC-SHA-256. The encryption features include a separation of the security keys between the core network segments. Also offered is fast synchronization of the security contexts in the access network (base stations) and the core network.

2. Privacy Protection

In 5G networks, privacy protection is ensured through the use of encryption and various other techniques. These strategies effectively guard against significant threats like IMSI/TMSI-catchers, which attackers commonly use to identify and track network subscribers. Mobile operators can implement the Elliptic Curve Integrated Encryption Scheme mechanism to conceal and regularly update a subscriber’s temporary identifier (TMSI). In addition, operators can detect false base stations, which are often the source of IMSI/TMSI-catchers.

3. Authentication and Authorization

Authentication and authorization in 5G is based on the Authentication and Key Agreement method (5G AKA). It includes a robust authentication mechanism to verify the identity of users, devices, and network elements. Unlike 4G, 5G doesn’t require physical SIM cards for credentials, but also supports pre-shared keys, certificates, and tokens. Mobile operators can choose the authentication credentials and authentication methods best suited to their customers and IoT devices. For example, traditional SIM cards are suitable for mobile phones, while digital credentials are more appropriate for simple IoT devices equipped with eSIM.

4. Network Slicing

Network slicing allows the creation of virtual networks for different services and applications. For instance, a subscribing company can use one network slice for high-priority employees with access to corporate services, and another slice for low-priority IoT warehouse sensors that transmit data to storage in a public cloud. Each network slice can be assigned specific security policies and protocols, helping to isolate and protect data and services.

5. NESAS

NESAS, or the Network Equipment Security Assurance Scheme, ensures the secure implementation of telecom equipment that mobile operators use in their networks, including 5G. Developed by 3GPP and GSMA, NESAS establishes security requirements and rules for successful infrastructure audits. NESAS takes into account both local and global cybersecurity regulations, for example, the EU cybersecurity certification framework. It is mandatory for vendors and mobile operators to comply with NESAS requirements.

How 5G Benefits Cloud-Native Companies

With its low latency, higher bandwidth, and extensive security measures, 5G strengthens the security of cloud connectivity. This upgrade enables secure and reliable transmission of sensitive information as well as real-time data processing. 5G allows organizations to confidently use cloud services to store and manage their data, reducing the risk of data breaches.

5G offers superior fault tolerance when compared to cable connections, primarily due to the inherent resilience of wireless channels in mitigating communication failures. With a cable connecting an office or factory to a provider, it might be necessary to build a backup connection through an optical fiber or radio. But 5G has a reserved channel from the outset. If one base station fails, others will take over automatically, making downtime unlikely.

In addition, 5G network slicing capabilities provide companies with dedicated virtual networks within their IT system. This enables better isolation and segregation of data, applications, and services, improving overall security. Enterprises can create customized network slices for specific tasks or particular departments. This feature ensures that critical data and applications remain separate and protected.

Where 5G Can Be Useful in Conjunction with the Cloud

Healthcare. Doctors can use tools like a cloud AI platform to remotely monitor patient health data in real time while remaining mobile via 5G. After the medical examination, high-resolution medical device images can be uploaded to the Cloud AI platform, processed, and returned to a doctor for further use. 5G also helps with ML diagnostics: a cloud ML application can receive images or other medical data over 5G for disease prediction, detection, and classification.

Secure access to corporate tools. With 5G data protection, access control management is enabled for each SIM card. Authorized employees can securely access corporate digital assets, data, and applications while working remotely without the need for a VPN or firewall is required.

Streaming. With 5G and cloud services like CDN, streamers, bloggers, and podcasters can enjoy uninterrupted, high-quality, live video and audio streaming. 5G facilitates the fusion of interactive elements within live video streams while instant video analytics generate real-time metrics that enrich the overall live event experience.

Smart factories. Manufacturers can predict maintenance needs and detect potential problems or failures by monitoring equipment data with IoT devices. They can use ML cloud services for analytics, while 5G provides a secure and fast connection to their cloud infrastructure.

Automotive IoT. Because of their performance capabilities, 5G networks are a superior means of data transmission in industries. In the self-driving vehicle industry, data from the vehicle’s sensors and cameras can be easily sent to the cloud at high speeds, and then processed by cloud AI tools.

Gcore’s 5G eSIM Platform

The 5G eSIM platform from the global cloud and CDN provider Gcore provides a powerful example of a collaborative 5G and cloud solution. The 5G eSIM platform offers access to IaaS, PaaS, AI infrastructure, a streaming platform, and other Gcore services over 5G. Gcore’s customers can securely connect to their cloud infrastructure via a direct private channel from more than 150 countries worldwide. 5G eSIM ensures secure data transmission through advanced encryption algorithms and security protocols.

Here is the architecture of the platform:

Gcore's 5G eSIM Platform architecture, showing the connection between mobile network, customer private region, and public region
Figure 1. Gcore’s 5G eSIM Platform architecture

Besides the 5G security features that are built-in in the standard, the 5G eSIM platform provides:

  • Control of traffic consumption for configuring a white list and a black list. These allow or deny specific protocols, URLs, and IPs.
  • Workgroup management for assigning employees’ names to eSIMs and grouping them by function, seniority, or department.
  • Detailed reporting system to view the report by group, period, eSIM, country, and more.
  • Personal eSIMs for each employee to assign them a corporate mobile number. Employees can access the internet and internal resources from a remote location without the need for a corporate VPN and without roaming charges.
  • Secured individual routing and traffic filtering to ensure protection against cyberattacks and data leakage.
Gcore's 5G eSIM control panel offers a wealth of features and options
Figure 2. Gcore’s 5G eSIM control panel

In addition, Gcore provides functionality within its Cloud to secure all customer services:

  • Identity and access management
  • Firewall with flexible security group configuration
  • Secrets management
  • IaaS protection

Customers can combine these cloud features with the benefits and features offered by the 5G eSIM platform.

Conclusion

5G has excellent performance capabilities and advanced security features such as encryption, network slicing, and 5G AKA. 5G networks are more resilient and flexible than LAN and WLAN networks; this makes 5G more effective in terms of technological advancements, business interests, and compliance with security requirements. As a result, 5G networks help businesses evolve faster without reducing the level of infrastructure protection.

Click here to read the full article from The Hacker News.

Big evolutions in the private 5G race

AUSTIN – Big 5G Event – Private 5G remains a hot topic, and it was certainly front and center here at the recent Big 5G Event. In this interview, Omdia analyst Pablo Tomasi discusses recent developments.

Tomasi, the principal analyst for private networks at research and consulting firm Omdia, says that private 5G players continue to discuss where and how developments will work at the network’s edge. Such discussions often revolve around whether enterprise customers will run their private network operations on their own premises or at a nearby computing location.

He also says that private 5G discussions often involve the role of Wi-Fi networks. Private 5G proponents have positioned their offerings as an alternative to Wi-Fi but increasingly are touting their offerings as a complement to Wi-Fi.

Finally, Tomasi says that private 5G providers will now address the role of open RAN technology in the space. But he cautions that it’s still early days for open RAN, particularly in private 5G.

Click here to read the article from Light Reading.

Paradise prepares a 5G platform for developers

AUSTIN – Big 5G Event – Paradise Mobile is close to finishing its 5G network buildout and is ready to kick off the next step in its broad strategy: opening its operations to developers, said CEO Sam Tabbara.

Speaking here at the Big 5G Event, Tabbara explained that Paradise Mobile is building a cutting-edge 5G network across Bermuda. The network isn’t huge – it spans Bermuda’s roughly 20 square miles with a handful of transmission sites – but it runs mainly in the Amazon Web Services (AWS) cloud using software and hardware from vendor Mavenir. That design is far different from most established telecom networks.

The initial goal of the Paradise Mobile network is to provide speedy 5G services to residents and tourists on the island. But Tabbara explained that the company also plans to offer its network to developers looking to test next-generation services on a cutting-edge, cloud-based network architecture.

Ultimately, Paradise Mobile hopes to offer its network as a kind of public test bed that others in the 5G ecosystem can use to prove out new technologies and business models that they can then export to other, bigger markets.

Click here to read the article from Light Reading.

Paradise prepares a 5G platform for developers

AUSTIN – Big 5G Event – Paradise Mobile is close to finishing its 5G network buildout and is ready to kick off the next step in its broad strategy: opening its operations to developers, said CEO Sam Tabbara.

Speaking here at the Big 5G Event, Tabbara explained that Paradise Mobile is building a cutting-edge 5G network across Bermuda. The network isn’t huge – it spans Bermuda’s roughly 20 square miles with a handful of transmission sites – but it runs mainly in the Amazon Web Services (AWS) cloud using software and hardware from vendor Mavenir. That design is far different from most established telecom networks.

The initial goal of the Paradise Mobile network is to provide speedy 5G services to residents and tourists on the island. But Tabbara explained that the company also plans to offer its network to developers looking to test next-generation services on a cutting-edge, cloud-based network architecture.

Ultimately, Paradise Mobile hopes to offer its network as a kind of public test bed that others in the 5G ecosystem can use to prove out new technologies and business models that they can then export to other, bigger markets.

Click here to read the article from Light Reading.

AT&T leases spectrum to AST SpaceMobile

AT&T is moving closer to making satellite-to-cellular calling a reality by entering a long-term spectrum lease agreement with AST SpaceMobile. In an FCC filing, AT&T said that it will lease to AST certain 850 MHz cellular A and B block spectrum as well as certain lower 700 MHz B and C block spectrum.

An AT&T spokeswoman explained that the leases are ‘non-exclusive’ and that AST’s satellites will not transmit in areas covered by AT&T’s terrestrial cellular network. “For example, we might cover 80 percent of the area of a 700 MHz license, and AST could train spot beams on the remainder,” she said.

In the FCC filing, AT&T further elaborated on the deal, noting that AST intends to provide broadband access “directly to AT&T customer handsets that operate on the Leased Spectrum, without any modifications or the use of special chipsets, and without the buildout of any additional terrestrial wireless infrastructure.”

AT&T further noted that this arrangement includes providing temporary coverage after natural disasters.

The lease arrangement is intended to begin immediately but AST must get FCC approval before it can start transmitting in the designated spectrum bands.

AT&T’s decision to lease spectrum to AST SpaceMobile demonstrates the operator’s growing support for direct satellite-to-cellular communications. This announcement comes just a few weeks after AST completed what it claims is the first direct voice connection from space on an unmodified smartphone. That test call, which was conducted in Midland, Texas, used AT&T’s Band 5/850 MHz spectrum and was conducted over a Samsung Galaxy S22 smartphone.

Click here to read the full article from Fierce Wireless.