5G is an exciting development. However, it also introduces a number of new challenges that will affect the entire transport network, such as the huge growth in mobile data traffic, the increased densification of base stations and access points, strict latency requirements and a multitude of vertical use cases. This will require additional capacity and connectivity as well as better synchronization and improved security.
The advent of 5G is an exciting time for service providers. Those that can converge and optimize their networks will be able to offer diverse new services that deliver a competitive advantage and contribute to top line growth. In fact, in ‘The guide to capturing the 5G industry digitalization business potential’, Ericsson delves deeper into how operators can potentially grow revenues up to 36 percent by addressing 10 key industry sectors.
Traditionally, to bring down the cost basis of optical transceivers, the industry relied solely on economies of scale to drive supplier volume for all-optical subassembly supply chains. This stands in stark contrast to the multi-$100 billion silicon electronic supply chain which has benefited from shared design methodologies, automated wafer manufacturing, shared packaging approaches and common test infrastructure to deliver unparalleled economies of scale for computing and networking equipment. The optical transceiver industry, by comparison, is a cottage industry built on fractured design methodologies, captive wafer manufacturing, proprietary packaging and labor-intensive production that limits economies of scale.