Ethernet Services over 5G: The New Business Standard

In 2019, 5G stepped onto the scene promising us higher bandwidth, low latency and the possibility of connecting more IoT devices, as well as many other advanced services. As our world is becoming more digitized and mobile-centric, 5G is essential for meeting the growing demands of applications in terms of delay and bandwidth.

Yet, despite being five years into its rollout, 5G is not being used to its full capacity, and some regions still lack cell towers. The equipment in many businesses still isn’t 5G compatible.

According to the GMSA, by 2029, 51% of mobile connections are predicted to be 5G. The future of 5G is bright, according to Forbes. 2024 is the year for 5G and it’s expected to benefit auto manufacturing, healthcare, agriculture, self-driving cars, 5G-powered robots, and much more.

For service providers, there are many advantages along with providing for your business customers. These include higher revenues and new service offerings, higher customer retention rate, and the list goes on. This blog will delve deep into how 5G is transforming Layer 2 Ethernet services and business connectivity.

Integrating 5G with Ethernet (Layer 2) Services
 

For several years now, 5G routers have also been in use for business services, primarily Fixed Wireless Access (FWA), with the most common application being internet access. These routers natively support Layer 3 (L3) connectivity, however many businesses prefer to manage their own networks independently, to separate their L3 traffic with that of the CSP (communication service provider). As a result, businesses often opt to subscribe to Ethernet (L2) connectivity services from their CSPs.

The introduction of 5G significantly enhances the potential use of cellular networks to transport Ethernet services. With much higher bandwidth, ultra-low latency, and extensive coverage, 5G is an ideal companion for ”traditional” Ethernet services that are mostly deployed over fiber access.

CSPs are interested in utilizing 5G transport for Ethernet services for two main use cases:

1. Utilizing 5G transport where fiber is unavailable to rapidly extend service coverage. This service over 5G could be:
   
   1. Permanent, in case fiber is impractical or too expensive to deploy in that location.
   2. Temporary transport until fiber is deployed.

In both cases above, the CSP can compete better, acquiring a customer with single or multiple deployment sites, using a flexible mix of fiber or cellular approach and meet Time to Market (TTM) objectives.

2. Utilizing 5G transport as backup for fiber-based Ethernet services. This is a premium service offering that guarantees service availability in locations served by both fiber and cellular access.

Transporting L2 traffic over 5G requires one of two possible methods:

1. Utilizing the 5G as IP transport, encapsulating Ethernet frames in IP packets with tunneling protocols such as L2TPv3 or ETHoGRE. This method preserves backwards compatibility with LTE transport and can be deployed over 5G in both standalone (SA) and non-standalone (NSA) modes. When using this method, the CSP should terminate the tunnel protocol before handing off the Ethernet traffic back to its fixed-line (VPLS/VPWS) core.
2. Utilizing 5G native L2 PDU transport. Applicable to 5G SA deployments, this method allows a simpler transport of the Ethernet frames over the wireless 5G network, without the need for tunneling. it’s increasingly gaining traction among 5G vendors and operators who are in various stages of supporting such L2 PDU transport in their deployments.

Regardless of the chosen implementation method, 5G is a suitable solution and businesses can benefit from its connectivity even in the most challenging of environments.

Benefits for Service Providers

Using 5G to deliver business services offers various benefits to CSPs:

• Gap coverage and temporary solutions: 5G acts as a reliable backup where fiber deployment is delayed or challenging, offering instant connectivity for new business sites, as well as for pop-up locations and short-term projects such as a sport events or conventions. This solution ensures uninterrupted service, reducing the need for third-party providers and maintaining customer satisfaction during fiber installation.
• Underground challenges: Trenching fiber to connect new business location underground (e.g., in train stations, malls, etc.), can be expensive and complex. 5G, on the other hand, is often already available. 
• Rural broadband: For business locations in small towns and villages with no planned fiber rollouts, 5G is the optimal solution. Microwave options can be costly, as significant capital is required for both setup and maintenance. Therefore, utilizing the existing multi-purpose 5G infrastructure is much more cost-effective and easier to implement until fiber becomes available. A key benefit of 5G is that it after fiber is installed, 5G continues to serve regular mobile users.
• Capitalizing on existing 5G networks: Although 5G is still expanding, FWA allows providers to generate revenues from their current 5G infrastructure, bridging connectivity gaps in fixed locations and reducing dependency on leased lines. 
• Flexibility and agility: With 5G services readily available, businesses can easily and quickly establish reliable connections, ensuring efficient service-continuity regardless of their physical location.

Key Takeaways

To sum up, 5G can benefit both businesses and CSPs. It offers new revenue streams for CSPs, while providing businesses the chance to scale up services with additional capacity and real-time performance.

5G can serve as a powerful supplement to traditional fiber connections, enhancing security and reliability, and opening new possibilities for businesses of all sizes. As the technology matures, we can anticipate further innovative applications that will continue to transform the landscape of business connectivity.

To learn more about how to use 5G to connect your business customers, contact us at [email protected]