The future of 5G: How services will evolve
How enterprises understand, interact with, and derive value from their networks is being redefined. 5G, IoT, and the edge are working together to position CSPs, enterprises, and consumers to benefit, says Blue Planet’s Kailem Anderson.
17 Aug 2021
The future of 5G: How services will evolve
How enterprises understand, interact with, and derive value from their networks is being redefined. 5G, IoT, and the edge are working together to position CSPs, enterprises, and consumers to benefit, says Blue Planet’s Kailem Anderson.
Telcos should be both excited and cautious about the future of 5G networks. The technology has unprecedented game-changing potential for mobile network operators (MNOs) and communication service providers (CSPs), but it will require new business models and an agile, automated infrastructure to monetize it effectively. The question is, what kinds of services will recoup infrastructure investment? And how can that new infrastructure be used to build powerful revenue streams that will propel future business?
One thing is certain: Innovation can't stop at the network layer. Even with 5G, connectivity will become a commodity when broadly deployed worldwide, just as 4G/LTE is today. Instead, CSPs must integrate services that use communication as a platform for connected experiences rather than simply offering the communication capability alone. They must not let themselves be relegated to mere connectivity partners, shouldering the infrastructure investment while over-the-top (OTT) providers use it to scoop up higher-margin revenues.
Network Slicing Is Key to Monetizing 5G
Network slicing is key to this transformation. This 5G technology enables operators to logically partition network resources for different applications, use-cases, or customers. In doing so, it creates opportunities to cut bottom-line costs and increase top-line revenues through new services.
On the cost savings side, network slicing minimizes capital expenditure because it allows operators to reallocate resources on demand over common infrastructure when a specific end-user, human or machine, isn't using them. Beyond that, it also offers the opportunity to increase revenues from tailored services that address specific customer segments. Rather than offering a single class of service that not all customers will find useful, operators can offer differentiated services on a per-customer basis that enterprise and residential users will find more appealing.
Telcos should be both excited and cautious about the future of 5G networks. The technology has unprecedented game-changing potential for mobile network operators (MNOs) and communication service providers (CSPs), but it will require new business models and an agile, automated infrastructure to monetize it effectively. The question is, what kinds of services will recoup infrastructure investment? And how can that new infrastructure be used to build powerful revenue streams that will propel future business?
One thing is certain: Innovation can't stop at the network layer. Even with 5G, connectivity will become a commodity when broadly deployed worldwide, just as 4G/LTE is today. Instead, CSPs must integrate services that use communication as a platform for connected experiences rather than simply offering the communication capability alone. They must not let themselves be relegated to mere connectivity partners, shouldering the infrastructure investment while over-the-top (OTT) providers use it to scoop up higher-margin revenues.
Network Slicing Is Key to Monetizing 5G
Network slicing is key to this transformation. This 5G technology enables operators to logically partition network resources for different applications, use-cases, or customers. In doing so, it creates opportunities to cut bottom-line costs and increase top-line revenues through new services.
On the cost savings side, network slicing minimizes capital expenditure because it allows operators to reallocate resources on demand over common infrastructure when a specific end-user, human or machine, isn't using them. Beyond that, it also offers the opportunity to increase revenues from tailored services that address specific customer segments. Rather than offering a single class of service that not all customers will find useful, operators can offer differentiated services on a per-customer basis that enterprise and residential users will find more appealing.
