Future 5G Strategies in Telecommunications

Telecom Business Review | Thursday, June 10, 2021

The advancement of 5G requires telecom operators to reevaluate how they utilize connectivity to maximize business value.

FREMONT, CA: In the past decade, connectivity has grown in importance, but average revenue per user has steadily decreased. Revenues from consumer goods will remain roughly flat until 2030.

It seems unlikely that consumer service revenues will primarily drive the industry's growth. Nevertheless, telecom operators must invest heavily in network innovations, such as 5G and fiber.

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The connectivity requirements of companies are extensive and expanding. As the market for connectivity-enabled industry solutions expands, operators have more opportunities to grow their businesses. And although industry connectivity requirements go far beyond what 5G alone can provide, the unique performance capabilities of 5G offer significant global economic potential.

By 2035, 5G is expected to enable annual sales of $13.1 trillion across all industries. Operators must make strategic decisions about their capabilities and roles in value-creating ecosystems to capitalize on emerging opportunities.

Fortunately, the market for connectivity-enabled industry solutions is expanding, providing operators with an opportunity to grow their businesses and revenue. The connectivity requirements of businesses are extensive and expanding. And although industry connectivity requirements go far beyond what 5G alone can provide, the unique performance capabilities of 5G offer significant global economic potential.

5G is a crucial lever explicitly designed to address scalability and enterprise performance requirements, enabling use cases previously inaccessible with global wireless technologies. 5G's decreased latency, improved reliability, capacity to support massive machine-to-machine interactions, and increased availability serve as catalysts for rethinking the role of connectivity in value creation and delivery.

Telecom modernization is crucial

The shift in emphasis toward industry enablement is permanent. Telcos consider it an endless evolution of the conventional telecom model.

Telcos believe that creating new value will necessitate significant changes to the telecom enterprise and, in some instances, a complete transformation. It will also require an awareness that collaboration produces combined effects. They believe ecosystem engagement and multi-stakeholder collaboration are indispensable for resolving complex problems by paving the way for multi-component integrated solutions.

Telecom operators have the chance to play a significant role in the subsequent phase of enterprise digital transformation.

Each operator must be positioned to provide unique value to end users and partners. Others may become more comparable to technology companies by integrating technologies and capabilities. It is essential that each develops a value creation strategy based on sustainable value delivery and scalable business models and that they align their entire organization to support their strategic direction.

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