Are service providers ready for profitable 5G monetisation?

Telecoms.com periodically invites expert third parties to share their views on the industry’s most pressing issues. In this piece Francesca Greane, Marketing, Content and Community Lead for 5G World 2020, discusses the landscape of profitable 5G monetisation. 

Finally, 5G is here. With its increased speed and reduced latency, this fifth-generation technology looks to promise communications service providers (CSPs) with lucrative new sources of revenue, new opportunities, and new ways to delight their customers.

It’s therefore not a surprise that 5G is the focus for service providers. The latest Ericsson Mobility Report, released in November 2019, brings interesting figures on 5G subscriptions; by October 2019 there were already 10 million 5G users in the world and this number is forecasted to be 2.6 billion globally in 2025. Clearly, the opportunity is there.

But, just because the technology – and it’s promises – are here, doesn’t mean that CSPs are ready for the first phase of mass adoption. Indeed, many CSPs are still grappling with the question of how to best monetize 5G technology.

Because, the truth is that what happened in 2019 doesn´t indicate the success of 5G until CSPs can start getting extra or new revenue streams to monetize their 5G investments.

According to industry analysts, Ovum, the truth is that 5G services will be fundamentally difficult for CSPs to profitably monetise using the current capabilities of their monetisation platforms. Indeed, both direct and indirect monetisation of 5G network features such as ultra-reliable communication, ultra-low latency, guaranteed throughput and reserved bandwidth will require CSPs to invest in, upgrade and fundamentally rethink their systems.

This idea is echoed by Light Reading, who maintain that “operators need agile monetisation systems that reflect a new portfolio of services, business models and a new approach to consumer payments and value. All of this plus ensuring they meet he technology requirements of 5G and cloud-native IT while also lowering TCO and performing at scale”

It is this business-critical rethink that Ovum outline in their latest report: Are You Ready for Profitable Monetisation?

Assessing the main features of the B2C, B2Bx, and B2B services that will be supported by 5G; the changes in the partner ecosystem will require; and consumer attitudes toward service usage and payment, this report delves into key recommendations for service providers looking to evolve their 5G monetisation strategies in 2020 and beyond.

To download the full report for free, click here.

To gain more business-critical insights, claim your FREE ticket to 5G World 2020 (9-11 June, ExCel, London).