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Rethinking Revenue Opportunities For 5G: Ebook
Rethinking Revenue Opportunities For 5G: Ebook
Rethinking Revenue
Opportunities for 5G
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CONTENTS
04 05
Introduction: Overcoming the Edge Security
Rethinking Revenue Opportunities Reality of Real 5G
for 5G
08 11
5G Revenue Opportunities for Standalone 5G – Service Provider
Telcos and Enterprises Revenues will be Driven by
Network-embedded Services
13 15
Rethinking the Telco of the Future How 5G will Enable Virtual Reality
‘Storyliving’
16
Content Spotlight
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eBook: Rethinking Revenue Opportunities for 5G
Introduction
Rethinking Revenue
Opportunities for 5G
E nterprises and service providers potentially
have a lot to gain from 5G, with the
opportunity to dedicate specific technology
“The reality is that the most successful 5G use
cases have likely not even been thought of
yet, and the web-scale mentality of ‘try fast,
services to network slices; deliver faster and fail fast, learn fast’ will be very applicable to a
higher-quality AR/VR gaming services; and successful service provider’s approach to 5G,”
provide a more secure, more reliable mobile writes Niall Norton, CEO of Openet, in The 5G
experience for customers. Exchange blog, “Rethinking the telco of the
future.”
In this edition of The 5G Exchange E-Book,
we’ll examine the benefits and challenges to Read on to hear from select authors on new
delivering secure 5G, how service providers revenue opportunities and business models
and enterprises can utilize 5G to tap new for 5G.
revenue streams and improve the customer
experience and how service providers can
rethink their business models to make the most Kelsey Kusterer Ziser
5G Exchange Curator
of all 5G has to offer. The 5G Exchange
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eBook: Rethinking Revenue Opportunities for 5G
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eBook: Rethinking Revenue Opportunities for 5G
6
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eBook: Rethinking Revenue Opportunities for 5G
T
he telecom industry has been at the helm of growth considerably on the telecom infrastructure to deliver
and development on a global scale. In addition, their services to end customers.
this industry has experience substantial change
concerning technology as well as business models. In addition, many OTT services are capable of
replacing the services offered by telecom service
The introduction of technologies like mobile phones providers, such as messaging applications that have
and cellular communication in the 1990s, and the largely replaced traditional SMS services. As most of
Internet revolution was well handled by the industry these services use the Internet to communicate, the
players – they were quick to adapt and maintain their service providers continue to enjoy revenues from
revenue streams. the use of Internet services and data packets transfer.
However, this is severely impacting their revenues that
However, the Over-the-Top (OTT) service providers were earlier generated heavily from their core services
like WhatsApp, G-Pay and Amazon Prime have posed like international calling and text messaging.
a considerable challenge to the revenues of service
providers. Three reasons why OTT continues to be popular
In response to growing competition, the telecom ost: The OTT services are delivered at bare minimum
C
industry is looking at different avenues to reclaim the costs. In fact, some do not attract any direct costs
past glory that it enjoyed before the rise of the OTT at all. These applications perform just as well as the
platforms. In fact, recent Gartner reports have indicated core services offered by service providers but without
that infrastructure investments in 5G are expected additional costs such as connectivity.
to generate immense revenues and resurrect the Abilities: Standard services like texting or SMS
standing of the service providers. have certain limitations in comparison to feature-rich
Here, we will explore the current challenges and how messaging apps like WhatsApp. Combined with the
creating new and improved revenue models help low cost, this is a major advantage that OTT platforms
redefine service providers’ business models. have over the telecom service providers.
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eBook: Rethinking Revenue Opportunities for 5G
5G Revenue Opportunities...cont’d
9
eBook: Rethinking Revenue Opportunities for 5G
5G Revenue Opportunities...cont’d
Piyush Jain
Global Services Architect
Ciena
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eBook: Rethinking Revenue Opportunities for 5G
D
espite all the distraction presented by COVID-19, millisecond latency. These powerful capabilities have
the second half of 2020 was significant in terms countless possibilities when it comes to monetizable
of accelerating 5G’s commercial potential. In the use cases for telecom service providers. These
US, T-Mobile, AT&T and Verizon were ramping up 5G. range from mobile cloud gaming, to remote surgery
In the UK, Vodafone switched on a small part of its in hospitals, to autonomous cars, to supporting
standalone 5G network and in Japan, Rakuten made its fully automated robotic production lines in smart
own unique advancements in building a greenfield 5G manufacturing environments.
network.
Some of these use cases are mission critical –
However, it remains early days for commercially instances like remote surgery in hospitals where
available standalone 5G network services – it is guaranteed low latency is literally a matter of life or
expected these will start to arrive towards the end of death. Required levels of throughput must therefore be
2021. This is great news for global telecom service guaranteed to be viable and healthcare organizations
providers, because the revenue potential from will pay a premium for such assurances. The same
enterprise-grade standalone 5G services far exceeds is true for automotive companies or local authorities
those of non-standalone. Furthermore, unlike so-called looking to safeguard roads with the launch of
OTT services in the past, telecom service providers can autonomous vehicles. Even mobile cloud gaming will
provide network-embedded services into standalone carry a premium in a consumer setting. A recent study
5G offers and can’t be disintermediated and relegated by Ribbon Communications proved that hardcore
to only providing connectivity. gamers would pay more for 5G if it could guarantee a
better playing experience – the majority (60%) would
Embedded value pay at least 50% more than they’re paying today. That
is a significant increase for telecom service providers
Embedded network services are services that rely on to contemplate.
the technological capabilities within the network to
offer guaranteed quality of service, strong levels of
reliable bandwidth and optimal levels of security. These With great potential comes greater
services require the extra low latency capabilities of
5G created and guaranteed by network slicing, which
complexity
These use cases can mean the introduction of tiered
requires standalone 5G infrastructure and a dedicated
pricing for 5G embedded network services. Some
network transport layer. In a true standalone network
service providers in the UK, Switzerland and Finland
environment, 5G can achieve download speeds
already sell 5G based on speed tiers. The thinking
of between 10 Gbit/s and 50 Gbit/s and provide
here is that people may not know how much data
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eBook: Rethinking Revenue Opportunities for 5G
Standalone 5G...cont’d
they’re using, but they will notice different speeds. Integrating 5G policy and charging functions in a 5G
In an enterprise setting, this means telecom service value plan into the service catalogue in BSS, and also
providers charging more for premium quality of the 5G networks, will ensure that service providers
experience (QoE) courtesy of bespoke SLAs. Tiered can quickly develop and monetize new 5G services
pricing for embedded network services brings where the quality of the customer experience is a
additional complexity to telecom service providers central part of the overall offer. Standalone 5G will
to not only launch new services, but also charge herald an unprecedented range of use case and
appropriately for them. We may also see service services. Many of these new services will be network
providers launch specific offers, e.g. a working from embedded services where the service provider cannot
home offer with guaranteed quality of service, or a 5G be pushed aside to be a dumb pipe provider, but will
gaming offer with, say, Nintendo or Microsoft, backed instead take center stage in the creation, development,
by consumer speed guarantees and wholesales monetization and management of 5G services.
(gaming partner) SLKs. While having plenty of
addressable use cases to monetize is good in terms
of potential ROI, it creates challenges in terms of
supporting and launching them all concurrently.
Martin Morgan
The 5G service reality facing telecom service providers VP Marketing
is that there will be more devices and services to Openet
support, with new chargeable elements to parts of
these services, more network functions to manage, Martin Morgan is the VP of Marketing at Openet.
new business models to contemplate and multiple With 30 years’ experience in mobile communications
partners to manage as transparently as possible. This software, Martin has worked in mobile since the early
requires connecting thousands of offers with countless days of the industry. He’s ran the marketing teams
network functions to offer services on demand. It also for several BSS companies and served on trade
needs dynamic capacity allocation on a network slice- association and company boards.
by-slice basis. Doing all this seamlessly to effectively
monetize each service requires the creation of a value
plan – a bridge between the 5G network and the IT
and business functions in a service provider.
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eBook: Rethinking Revenue Opportunities for 5G
T
he emergence of network embedded services, defining their strategic positions from which use cases
network slicing capabilities and the ability to spin will follow. Primarily, the enterprise market has received
up individual sub-networks with their own Quality the most attention with many in the industry arguing it
of Service (QoS) and tailored service experiences will will represent the greatest portion of 5G value.
see 5G become a key strategic business enabler. It
will also provide telecoms industry with the overhaul it Already we’re seeing 5G excitement building in
desperately needs. advanced manufacturing settings. This year, industrial
and manufacturing giants like Ford UK, Lufthansa and
With 5G, service providers have the opportunity to Toyota have all announced plans to work with partners
rethink and reshape their business models to succeed on the development of their own private 5G networks.
in an ecosystem driven by the demand for rich data Enterprise players are bullish about accelerating their
services. The future for service providers could include adoption of these technologies as the promise of 5G
delivering high ARPU services to millions of consumers, looks set to deliver improvements this sector has been
and just as profitably serving low ARPU services to crying out for.
trillions of devices. 5G enables the economics of this
strange new market place. Service providers must embrace proudly and loudly
the value they can offer here. There will be a gap in the
The telecoms industry now finds itself at a crucial knowledge that service providers can help bridge to
inflexion point. In the next 12 to 18 months, 5G will support enterprise leaders in achieving their ambitions
mature quickly and service providers will be keen to for 5G. Service providers can focus in on manufacturing
cash in on 5G infrastructure investments and years settings, for example, to provide end-to-end offerings
of planning. But a change in mindset will be critical. as the principle provider. This may take the shape of
Service providers will need to go beyond connectivity supplying services such as high-definition cameras to
and adapt to play a central role in delivering the value a car manufacturer that requires 5G and ultra-reliable
of the 5G network. What 5G will be is a platform for low latency communications (URLLC) on a production
telco reinvention. line. High-definition images can be processed in real
time with near-zero latency to automatically inspect the
New Use Cases, New Markets and New quality of products.
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eBook: Rethinking Revenue Opportunities for 5G
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eBook: Rethinking Revenue Opportunities for 5G
W
e are on the verge of a digital content revolution. rather than downloaded beforehand. Additionally,
The mass adoption of immersive technologies the advancement edge-computing, a distributed
stands to mirror or even overshadow earlier computing framework decentralizing data processing,
innovation eras in technology and communications. means consumers will have smaller and thinner
The rise of 5G, edge computing, and Virtual Reality (VR) devices.
will enable the next stage of the experience evolution.
Streaming immersive experiences require a lot of data
VR is a computer-generated, simulated experience to be processed. With low latency, incredible speed,
that places users in immersive 3D environments. With and massive capacity, 5G and edge-computing will be
current 4G technologies, people face lagging when game changing for VR. The higher throughput of 5G
streaming content from their smartphone. But with the will enable users to stream instant VR content from the
new-network capacity for 5G, creatives and consumers cloud. Not only will content load faster, but developers
can swap the linear video or song for an entire will not be as tied down by current game-engine to
interactive virtual world. Current multi-user networked headset optimization limitations. 5G will enable the
VR experiences, or social VR, are limited to low-poly, or next level of interconnected, immersive experiences.
low graphic, designs. Developers and designers will soon have an entirely
new canvas to create their dream experiences.
Attempting to stream multi-user high-quality VR
experiences on current 4G capabilities is nearly Strapped in our VR headsets (or thinner smart glasses
impossible. I sometimes struggle to get a 1080p wearables), information, objects, and people will be all
HD video to load on my phone and I cannot fathom around us. Instead of passively staring at the screen
streaming a full VR experience with current 4G or waiting for environments to load, VR users will be
limitations. Even Augmented Reality (AR), which engaged in the next era of content consumption:
overlays digital elements into a physical world, is data “storyliving” rather than storytelling.
intensive. As Forbes reports, “one minute of AR will
consume 33 times more traffic than one minute of
480p video.”
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eBook: Rethinking Revenue Opportunities for 5G
IoT and Network Sunsets: A 4G/5G Planning Framework Heavy Reading sponsored by Telit
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