What will separate the 5G leaders and laggers in 2023

January 27th, 2023 by · Leave a Comment

This Industry Viewpoint was authored by Ragu Masilamany, VP and Global Head of Solutions Engineering and Labs at Amdocs

As communications service providers (CSPs) want faster monetization of 5G, recession fears loom, and the cost of energy increases, some have formed a shortsighted view of 5 G’s true long-term impact. However, leading into 2023, this perspective could be what separates the leads in 5G from those who delay investment due to “5G” fatigue.

As CSPs continue to shift from an “infrastructure” to a “platform” strategy, I believe 5G monetization will open new business models that were not feasible before the 5G and edge combination was available. Looking back, we’ll see 5G as something other than an upgrade of 4G, but as a foundation for many new Gs, partnerships, and business models. 

 Where we are and where we’re going 

5G investments are already paying off for some industry-leading CSPs through increased video/gaming usage on 5G (vs. 4G), private 5G networks and customized network packages, demonstrating a taste of what’s possible. Research from Amdocs shows there is interest from consumers to bundle experiences with dedicated 5G connections. For instance, most consumers (78%) are willing to pay at least $10 for cloud gaming if they could ensure a bundled 5G connection as an add-on, while almost half of these respondents (44%) would pay more than $20.

On the enterprise side and through work with partners in our 5G Experience Lab, we’ve already seen an abundance of 5G investments possible through private 5G networks and customized network packages. For instance, doctors can virtually scrub in from any location and guide on-the-ground surgeons; facial recognition to determine access eligibility and personalize commerce experiences; bring real-life guidance and support to field engineers via AR/VR; and more.

However, even with momentum, we’ve recently seen a notable trend of companies announcing reductions to their 5G investments, minimizing the network’s potential long-term impact. 5G across the board has proven integral to an organization’s business success – so why this shift? 

The industry must put forth the proper foundation to spit out new services every week, trying the market consistently instead of waiting for the singular silver bullet use case. Otherwise, there will be none. 

Setting the stage for success in 2023

How can we ensure that 5G presents CSPs with the right opportunities to be a network platform player in 2023? How do we know that 5G will elevate CSPs to continue unleashing new experiences for consumers and enterprises? 

First, coverage and quality of the network. We still need to deliver the promise of a better experience. Consumers need to feel the difference, even if it’s a simple experience like “video works better everywhere.” 2023 (and into 2024) will also be about new connected devices, device choices, products, and services ready to connect to the 5G network and take advantage of it.

On the enterprise front, the 5G evolution presents many opportunities (i.e., new product offerings). For one, to accelerate the adoption of mobile private networks (MPNs) as more data-reliant devices are connected to the 5G network in areas like real-time robotics control, intelligent video analytics, and augmented reality for machines and industrial processes. With an increased reliance on ubiquitous connectivity across industries, better controlling how critical data is traversed and flexibly scaling networks up and down to meet specific needs is essential for success.

To become or remain an industry leader, CSPs need to consciously harness the power of modern software, new APIs, and advanced networks to provide an experience that garners a result beyond the traditional. For example, CSPs can enable the fast and intelligent rollout of high-speed, dedicated networks within sports stadiums to give fans immersive and responsive experiences with augmented or virtual reality (AR/VR). Across college campuses, CSPs can enable unbreakable connectivity that enhances digital learning and information access and increases network security and reliability. Those who take advantage of this private network infrastructure will pull ahead of the competition by making these previously improbable experiences possible. 

The reality is that 5G offers software-enabled flexibility indoors and outdoors, a larger pool of vendors to choose from, and is mission-critical to the future of enhanced connectivity and the innovations and transformative technology that comes with it. Disinvesting or delaying will only make companies vulnerable as they play catchup in the future. Those who capitalized on 5 G’s early commercialization will be the first to reap the rewards from the new revenue streams it creates. 

If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!

Categories: Industry Viewpoint · Software · Wireless

Discuss this Post

Leave a Comment

You may Log In to post a comment, or fill in the form to post anonymously.

  • Ramblings’ Jobs

    Post a Job - Just $99/30days
  • Event Calendar