Assessing the effects of 5G SA adoption on TCO and network operation

5G standalone (SA) is widely recognised as the technical foundation for network slicing and more advanced automation. However, initial operator interviews indicate that SA scale-up is progressing more slowly than industry expectations, for three main reasons.

• Device readiness and customer experience risk. SA-capable devices are growing in number, but broad activation depends on device enablement and certification processes from original equipment manufacturers (OEMs). Operators are cautious about moving too quickly while 4G and 5G non-standalone (NSA) remain the dominant experience for most customers.
• Limited demand for dynamic slicing. Many operators see value in differentiated services but expect near-term needs to be met by a small number of predefined (static) slices rather than per-customer bespoke slices, due to cost–benefit considerations and governance complexity.
• Upfront cost and operational complexity. The introduction of cloud-native core and SA requires upfront investment and often increases near-term operational burden (skills, tooling, dual run), even if operators expect efficiencies to emerge as automation is industrialised.

Against this backdrop, many discussions on SA business cases focus on the timing and shape of future revenue upside from differentiated slicing-based services, network exposure/API opportunities, positioning-related services and SA-enabled device/service categories, such as RedCap. These monetisation opportunities are emerging, but are likely to materialise unevenly across operators and over a longer time horizon, influenced by factors that are outside the communication service providers' (CSPs') control, such as device ecosystem timing, customer adoption and regulatory considerations. In parallel, the cost-side impact of SA and automation can be assessed more directly and is more closely linked to operator execution. Decisions on the operating model, tooling, orchestration and automation coverage determine how quickly CSPs can industrialise SA operations and create repeatable efficiencies.

This report therefore focuses on the total cost of ownership (TCO) and operational efficiency case for accelerating SA and automation. The intent is to complement that longer-term discussion with a decision-grade view on the cost transformation potential and the conditions required to realise it. Importantly, the same capabilities that unlock cost benefits also prepare the network for future requirements such as scaled dynamic slicing, advanced service-level agreement (SLA)-based enterprise services and AI-assisted operations.