Telia 's investments in standalone (SA) 5G, network slicing are part of its ambition to build a platform business model, supported by a comprehensive overhaul of its OSS/BSS.
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Telia advances on its standalone 5G ambitions
One of the things that struck me when discussing Telia’s business and software transformation with Vincenzo Procopio, Head of IT Production at Telia, was how focused Telia is on goals. When undertaking a large-scale program of transformational activities, it is easy to get mired in the evolutionary details, but Vincenzo spoke consistently about the future capabilities that the company is unlocking by undertaking this process rather than the new and shiny IT itself.
Central to this unfolding story is Telia’s consistent investment in 5G. While many CSPs have stalled at the non-standalone phase, settling for using 5G new radio (NR) for faster data transfer on consumer and business mobile, Telia is pushing on to standalone (SA) 5G, network slicing and the full realization of the decade-long ambition. The primary reason for this is building new service models, and ultimately becoming something more than just a connectivity provider.
The vertical industries that Telia is aiming to address in the first instance are (for my money) sensible choices, automotive, gaming etc. but 5G SA clearly means more than that in the long term. It means moving to a true platform business model which is industry agnostic, and will also generate an innovation response in Telia’s partners and customers. Innovation in future value chains or value ecosystems is not a responsibility that lies specifically with the CSP. What is their responsibility, however, is providing an environment in which innovation can thrive without restriction. As such, this digital transformation reaches far and wide, including a comprehensive overhaul of OSS and BSS to underpin future success.
The message I repeatedly hear from progressive CSPs is that the current point in the 5G investment cycle is a time to hold their nerve and push on towards their original ambition. From a revenue perspective, we are seeing very positive signals from APAC countries that have truly scaled standalone 5G and are now seeing strong net new revenues from previously addressable B2B markets such as manufacturing and heavy industry.
From a societal point of view, Telia like all incumbents is a company woven into the fabric of Swedish domestic life and more broadly across the Nordics. As such, investing in infrastructure with will enable new services like autonomous public transport, that has a direct positive impact on the daily lives of those citizens. This keeps Telia relevant as a central technology entity across a broad range of new disciplines and an appealing partner for both other established technology companies and startups.
Lastly, one of the key messages I took from the conversation with Vincenzo was that Telia and Ericsson together understand the importance of partnership. Not just in establishing the technology stacks for 5G SA, but as a mantra for future business, as the potential addressable market scope becomes broader. Building an automated, frictionless mechanism for onboarding partners and maintaining equitable relationships is essential for executing on a successful business diversification strategy.
A commonality we see in the use cases that CSPs like Telia are addressing in the first wave of 5G SA service models is they have a deep presence in the value chain and are selling a solution rather than just a connectivity package. This strategy is essential to avoid a replay of the utility pricing of being a data pipe from previous telecoms technology cycles and to start driving strong return on investment from both 5G network and IT transformation investments.
The current IT transformation program that Telia is undertaking with Ericsson for OSS/BSS and 5G Core along with a host of other partners, is one of the final components of the 5G platform that will enable Telia to start to realize many of its long-held 5G ambitions.