Market Drivers,Insights &Considerations A Spirent Report 5G Standalone: Ready to beLEASHEDLEASHED An untapped world of 5G Standalone-powered innovation andopportunity awaits. It’s been a long time coming. During 2023,5G Standalone saw sluggish commercial deployments, largely dueto delays in overcoming the formidable technical challenges of Growth is forecast to rebound during 2024/5 as 5G Standalone truly opens for business.It won’t just deliver more performance, but value that enterprises and consumers will pay for. All the projections and promises we’ve heard for more than half a decade are coming to fruition.Driven by growing automation and 5G core adoption,we anticipate 2024 being the year Of course, with new services come unprecedented expectations. The world will ask more of mobilenetworks than it has before. As competition grows ever-fierce, there is no room for stumbling Yes, mobile operators now run extremely complex live networks demanding that performance,resilience, security, and more are tested and validated constantly in real-time. We are proud to fulfill this role in the work we do across more than 3,100 5G engagements globally. I am honored to present our latest market findings, insights and predictions of a market ready to ERIC UPDYKE CEO, Executive Director What’s Inside 2023 By The Numbers 5Market Update 125G Outlook Trends 145G Megatrends 315G Unleashed Despite macroeconomic headwinds in the telecommunication market, Spirentsecured over 500 5G-related new engagements from more than 150 customers. TOTALSpirent5G Engagements3,100+ To Date NEWSpirent5G Engagements500+ DIFFERENTSpirent 5G150+ MARKET UPDATE The Calm Before5G’s Perfect Storm 2023 saw Spirent continuing to march along the5G journey with our customers, embarking on morethan 500 new engagements with over 150 different Manuel Zepeda Spirent’s EVP of Global Salesand Services on telecom’s focusas the 5G floodgates open. Following a year dominated by service provider activity,2023 saw a notable uptick in our work with networkequipment manufacturers (NEMs) and device OEMs. When welook back,I suspect 2023 will havebeen thecalm before Real 5G is coming andthe world is getting ready The data in our By The Numbers snapshot shows an evenmix of 5G-related engagements across service providers,device OEMs, and NEMs with the majority of activity inthe Americas, followed by APAC and EMEA. This workspanned 5G core and cloud testing and automation, A shaky global economy and markets just slightly aheadof meaningful revenue opportunities defined a year short Swirling in the background was tireless preparation for5G Standalone (SA) deployments, private network usecase validation, and an expanding pipeline of devices Our perspective from these engagements informs ourunderstanding of what to expect during 2024. Let’s dive intosome of thekey trends •Enhanced 5G core capabilitiestesting expanded toinclude roaming, network data analytics function(NWDAF) and access traffic steering, and switching andsplitting (ATSSS) for Wi-Fi convergence use cases, with •5G FWA with network slicingstarted driving demand foran accelerated move to 5G SA as operators look to better 15G STANDALONE AND THE NEW CLOUD-NATIVE CORE 2DEVICE AND HANDSET SERVICE EXPERIENCE TESTING DEVICE AND HANDSET SERVICE Our device and handset-focused engagements doubled in2023 as stakeholders ramped up service experience testingfor 5G SA-enabled devices capable of supporting services 4SERVICE ASSURANCE ACTIVE TESTING 5NON-TERRESTRIAL NETWORKS TESTING •Service providers are dialed in with device makers,prioritizing efforts to unlock 5G SA-enabled 6OPEN AND NG-RAN TESTING •Engagements around devicesare expected to expandfurther in 2024 as more service providers move to 5G SA. 5G STANDALONE AND THE •New capabilitieswill be a big focus as networks upgradeto 3GPP Releases 16 and 17 and support reducedcapability (RedCap) NR for wearables and industrial Spirent’s largest customer focus areasaw testing and validation work with more than 30 service providers during the year — a strongindicator of commercial 5G SA acceleration in 2024. This isdespite slow commercial deployment momentum to date. TRANSPORT NETWORKS TESTING •Single-vendor 5G corewill define early commercialrollouts but 2023 saw an uptick in multi-vendor testingas software releases accelerated, requiring lab and test Router and switch testing for transport testing saw a slightuptick during 2023 with multiple dominant themes signaling •Large market 5G RAN deploymentsdrove cell sitegateway upgrades to 10/25G edge routers and •Service provider-owned cloud and vendor-supplied clouddominated public networkinfrastructure deployment models while public •200/400G refresh cycles for IP Core backbonesareunderway as large service providers prep for 5G SA andanticipate delivery of higher-speed mobile broadband •400G will reach critical massby 2027 as large serviceproviders adopt 5G SA, and benefit