The next-generation 5G network marks a transformative leap in connectivity, generating significant enthusiasm across industries, businesses, and consumers worldwide. With its unparalleled speed, low latency, and massive capacity, 5G promises to revolutionise how we communicate and interact with technology. For Telcos, the deployment of 5G not only ushers in a new era of connectivity but also presents a strategic opportunity for revenue growth through 5G monetisation. As Telcos invest heavily in the infrastructure and technology required for 5G implementation, the ability to capitalise on these investments becomes vital for future success. 5G monetisation strategies include various innovative services and applications, from enhanced mobile broadband to the Internet of Things (IoT) and edge computing, providing Telcos with diversified revenue streams. We highlight the ins and outs of 5G Monetisation and the opportunities presented for Telcos in more detail below.
What is 5G Monetisation?
5G monetisation is a strategic approach adopted by Telcos to maximise their revenue by leveraging the capabilities of fifth-generation (5G) networks.
In the evolving Telecommunications landscape, providing reliable connections and high speeds is no longer enough to meet customer expectations. The paradigm shift to 5G requires Telcos to identify innovative business models, products, use cases, and policies that extract the most value from their substantial investment in advanced network infrastructure. The key lies in transforming network functions into personalised services and products that cater to the evolving needs of customers. This shift towards more tailored offerings capitalises on the speed and capacity advantages of 5G technology. Telcos must not only deliver faster and more reliable connectivity but also seize opportunities to introduce diverse services and solutions.
This multifaceted approach enables Telcos to not only meet customer demands for enhanced value, options, and functionality but also facilitates the recovery of the substantial costs associated with implementing 5G networks. In essence, 5G monetisation is a critical strategy that aligns Telcos with the changing landscape, ensuring sustainable growth and competitiveness in the Telecommunications industry.
So, what does 5G monetisation look like from a Telco perspective? Telcos could look at several solutions to meet customers’ needs and their need to drive revenue. These include:Â
- Network-as-a-service solutions – provide customers with the networking hardware, software and operational maintenance services as an operating expense. In this way, the Telco would manage the service while the customer pays a monthly fixed fee.Â
- Value-added services – are services that go beyond a Telcos standard voice and data services. These services include IoT and mobile data management, automotive connectivity, augmented reality and virtual entertainment and gaming services, video streaming, data security services and more.Â
- Network slicing – is a specific capability of the 5G network. This technology allows overlays of multiple virtual networks on top of a shared network and computing resources. Each network slice can have its topology, security rules and performance categories. In this way, the different slices can have different purposes, for example, allowing a specific application or service to get priority access to capacity or isolating traffic to particular users or device classes. This kind of solution enables a Telco to maximise network resources and service flexibility. Network slicing could also be monetised by providing innovative bundles made possible through partnerships with different MVNOs, infrastructure partners, Over The Top (OTT) providers, and different vertical industries.
- Enhanced Mobile Broadband (eMBB) – Telcos can capitalise on the increased data speeds and capacity of 5G to provide faster and more reliable mobile broadband services. Higher data speeds enable better video streaming, augmented reality (AR), virtual reality (VR), and other high-bandwidth applications, creating opportunities for premium subscription plans.
- IoT (Internet of Things) – 5G enables massive device connectivity and low-latency communication, making it ideal for IoT applications. Telcos can offer IoT connectivity services to various industries, such as healthcare, manufacturing, agriculture, and smart cities, creating new revenue streams.
- Enterprise Services – Telcos can target enterprise customers by providing customised 5G solutions tailored to their specific needs. Services like private 5G networks, edge computing, and dedicated network slices for different applications can be monetised to address the unique requirements of businesses.
- Content Delivery and Edge Computing – 5G’s low latency and high bandwidth enable edge computing applications and decentralised content delivery. Telcos can monetise edge computing services by offering computing resources closer to the end-users, reducing latency for applications like gaming, video streaming, and real-time analytics.
- Collaboration with Vertical Industries – Telcos can form strategic partnerships with industries such as healthcare, education, and transportation to co-create and monetise 5G-enabled solutions. Joint ventures and collaborations can lead to developing industry-specific applications and services, expanding Telcos’ market reach.
- Monetising Data Analytics – Telcos can leverage the vast amount of data generated by 5G networks to offer data analytics and insights to businesses. Analysing network data can help enterprises make informed decisions, optimise operations, and improve efficiency.
From the above, it is clear that by exploring these avenues, Telcos can unlock new revenue streams and stay competitive in the rapidly evolving Telecommunications landscape.
Why is 5G monetisation important?
The monetisation of 5G is vital for Telcos as it represents not merely a competitive edge but a strategic imperative for sustained relevance and growth in the evolving digital landscape.
With 5G set to revolutionise various industries by offering unprecedented speeds, improved capacity, and ultra-low latency, it is the cornerstone of future mobile communications technology. The potential applications of this network span diverse sectors, including healthcare, manufacturing, transportation, and entertainment, each eager to harness the transformative capabilities of 5G. Telcos, therefore, play a significant role as enablers, offering tailored solutions to businesses seeking to leverage the advanced features of this technology.
The exceptionally high data speeds, up to 10 to 50 times faster than previous network generations, position Telcos as key facilitators for enterprises looking to enhance their operations through the seamless integration of 5G.
From the above, it is clear that the monetisation of 5G is not just an opportunity for Telcos. It is essential to meet the accelerating demands of a world increasingly reliant on connectivity and technological innovation. Embracing and capitalising on 5G is crucial for Telcos to not only remain competitive but also actively drive and shape future advancements in the Telecommunications industry.
Challenges With Monetising 5G
Monetising 5G presents several opportunities, but it has its share of challenges. Let’s dive deeper into some of the obstacles hindering the swift adoption and monetisation of 5G.
- High Cost of IoT Devices:
Challenge: The transition to 5G requires compatible devices that can harness its capabilities fully. However, the cost of acquiring 5G-ready IoT devices is often too expensive for many consumers.
Impact: This cost barrier slows down the adoption of 5G, limiting the potential user base and delaying the success of new revenue streams for Telcos
- Infrastructure Investment Challenges in Specific Markets:
Challenge: Implementing 5G infrastructure demands substantial capital investments, and certain markets, especially in developing regions, may lack the financial resources required.
Impact: Without adequate infrastructure, the benefits of 5G, such as high-speed connectivity and low latency, cannot be fully realised. This hampers the widespread adoption of 5G services in certain areas.
- Security Concerns:
Challenge: The increased connectivity and complexity of 5G networks raise cybersecurity concerns. Ensuring the security of the network and user data is crucial for widespread adoption.
Impact: Security issues can erode consumer trust and confidence in 5G networks. Addressing these concerns is essential for encouraging user adoption and fostering a secure environment for monetisation.
- Lack of Technology for Monetising 5G:
Challenge: Successful monetisation of 5G requires advanced technologies to enable services such as value-added services, network-as-a-service, and network slicing.
Impact: Telcos need robust solutions to effectively leverage the capabilities of 5G. Without the right technology, they may struggle to offer innovative services and capitalise on the diverse revenue streams that 5G can potentially generate.
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Adapt IT Telecoms plays a crucial role in addressing these challenges by providing the necessary technological solutions to enable effective 5G monetisation for Telcos. Adapt IT Telecoms’ innovative technologies can help Telcos overcome hurdles and unlock the full potential of 5G, driving its adoption and creating new revenue streams to drive profitability and enhance competitiveness.Â
They say the proof is in the pudding, and our clients could not agree more. One client reported that implementing the necessary technological solutions was critical to identifying the appropriate measures of success and monitoring. Moreover, this client mentioned that CDRlive was an incredibly important source of information for the 5G performance dashboard as they could measure the success of 5G device rollout, customer plan uptake and customer usage patterns. This client also identified opportunities to increase 5G device uptake and plans based on customer usage data from CDRlive. The combination of data from operational support systems (OSS) and business support systems (BSS) in CDRlive was imperative in measuring the right success factors. Overall, the clients’ challenges were addressed by providing the necessary technological solution, which enabled them to monetise 5G effectively as a revenue-generating service offering.
Conclusion
5G monetisation is set to significantly impact the Telecommunications industry as we know it. Through 5G monetisation, Telcos will be able to increase their revenue and growth, but this depends on several factors, which include the ability of markets to adopt 5G-powered IoT devices if they have the capital investment necessary to implement the new network infrastructure and if they have the right technology in place to develop and implement innovative 5G monetisation services and solutions. Even with these significant challenges, 5G and the monetisation of this platform will remain critical to the success of the Telcos of the future.
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With close to 20 years of senior leadership experience in the Information Technology and Client Outcomes space, I am well placed to provide extensive knowledge and expertise to any major organisation, where I can provide value, understanding, strategic outcomes, and growth opportunities with regularity. My ability to understand customer and client expectations and requirements, and to deliver key outcomes in alignment with market expectations has ensured consistent growth for all departments I have worked within in my career.
