To sum up the explanations given for why it's part of the SOC and not an external device on a bus:
> Last year’s ... external 5G modem such as the X55 helped the 5G transition as it was available to vendors earlier than the Snapdragon 865 SoC itself, allowing them to design their RF systems before having access to the newest SoC.
> The platform’s reabsorption of the modem into the SoC die should signify better power efficiency, lower platform cost as well as lower PCB complexity for smartphone vendors.
Or are they already baking it in and just paying royalties to Qualcomm?
A 5G modem is pretty complicated tech. I used to work on Nvidia's Icera, but that's gone now. A lot of chip makers have given up, and Qualcomm is the undisputed leader. MediaTek dominates in low-mid end Androids. I think Huawei & Samsung both have something.
https://www.ifixit.com/Teardown/iPhone+12+and+12+Pro+Teardow...
The same are in yellow and red on the Samsung Galaxy S20 with Snapdragon 865 teardown:
https://www.ifixit.com/Teardown/Samsung+Galaxy+S20+Ultra+Tea...
The SDR865 and SDX55M are the external 5G parts that would disappear with the 888. Compare the PCB area used for those (they're both almost as large as the whole SOC; I'm sure much of that is driven not by silicon area or thermal requirements but by a lot of power and pins for high-speed host communication) to this teardown of the Galaxy S10, which has the Snapdragon 855 with an integrated 4G modem:
https://www.ifixit.com/Teardown/Samsung+Galaxy+S10+and+S10e+...
Apple has said they want to integrate the 5G modem by 2022.
It may also make it feasible to include 5G in laptops. Currently Apple licenses Qualcomm modems. Qualcomm charges a fee that is proportional to the full retail price of the device. That would be significant for a laptop. If Apple can use their own modems and get around that licensing cost, it makes a laptop with a cellular connection more likely.
Trying to do a wholly SDR free 5G modem would be a monumental feat, and first attempts at implementations would probably be gigantic.
If you want to do real time 5G calls (as you do when you prototype, test and develop) using software defined radio you buy one of those USRP boxes. They have CPU's DSPs that run software and then programmable FPGA's talking to ADCs and DACs.
https://community.arm.com/cfs-file/__key/telligent-evolution...
I believe srsLTE, used to turn SDRs into eNodeB/UEs, adds support for 5G soon (tm).