5G+ Build and monetize what’s coming next | Rakuten Symphony

Geoff delves into why 5G revenues have failed to meet expectations, what customers and businesses anticipate from network operators and the potential for operators to capitalize on new monetization opportunities.

5G revenues are falling short of expectations, so what was not anticipated?

The industry approach to 5G has been in the wrong direction. It is very technology-centric. The industry, in general, not only for 5G but for the whole business going forward, should anchor itself on what customers are doing, what they need, and how they are connected. The reality is that customers are sometimes connected to 5G networks, but quite often, they are connected to other networks, and sometimes they are connected to networks that are 5G but operated by other network service providers. Hence, as network service providers, we need to anchor ourselves in the reality of what we can actually control with those customers and when. Operators are also in a great position as an industry because the demand for what they deliver increases continuously. Each network operator has a large customer base, counting to the millions, so anchoring in improving the customer experience where they are actually connected to their own network is where operators need to stop.

What reality do operators need to accept about consumers’ and enterprises’ mindsets about 5G?

For consumers, the operators need to accept the reality as an industry that consumers today receive a great experience from what the 4G network delivers. Consumers want a better experience, but they do not want to pay more. A better experience is either a more responsive experience or a richer experience. With 5G, operators can start delivering more augmented experiences with a higher response rate, but with an understanding that consumers will not pay more for this enhanced experience. Operators can improve efficiency, improve the experience, and also lower churn. However, this will not generate revenue for the operators.

These awards recognize innovators in private network deployments across connected industries leveraging 5G, LTE, or CBRS. Showcase your achievements in select categories and be recognized by the industry. Explore the 25 award categories here.

Key Dates to Remember:

  • Entries Open:ย Submit Now!
  • Entries Close: October 30, 2024
  • Winners Announced: November 15, 2024
  • Private Network Magazine: November 30, 2024

Find more details and FAQsย on what’s required to submit your nomination, including submission guidelines, and judging criteria.

For enterprises, operators must embrace the fact that enterprises want business outcomes. Enterprises do not want to buy one 5G network, they want to integrate many networks. Operators must embrace the fact that they are an ingredient at the network level with an enterprise and a part of the overall solution. Operators can choose to move higher in the value chain, but then they have to start delivering things beyond the network.

Operators must turn their gaze to new opportunities.ย Where should they be looking?

At the moment, we have been living at the most exciting time in our industry for the last 15 years. The last time we were in this inflection point was around 2005 to 2007, that was when we first defined something called Web 2.0. Web 2.0 made the difference when the software community started putting together easy-to-use tooling to create interactive two-way applications. We saw the growth and explosion of Web 2.0, and it works fine. However, we need to improve the efficiency and interactiveness of those experiences. People, in general, understand what they pay, and they won’t pay more.

What is now happening is the revolution of Artificial Intelligence (AI) and the democratization of those engines to complement our lives as consumers and enterprises. In the background, the software community is progressing with open-source solutions and tools to create the next flow of experiences that will go into every aspect of our lives. All the experiences are as good as the data received, the data’s timeliness, and the data’s quality. The network operators are responsible for providing the data to the AI engines to ensure that the responses and actions can be prompt and useful. Operators must focus on AI and real-time action-oriented experiences that todayโ€™s infrastructure does not support. We, as operators, should fill the gap and participate in the growing developer and application community.

What roles exist for operators that recognize new opportunities in the high-performance computing and AI-driven world?

Connectivity Business

Operators have an existing business, which is a connectivity business. As operators, we have built a 5G network that is very high-capacity and very far-reaching. Operators can go to market with products of that network that are connectivity centric, where people accept that it only works on that one network. Examples that are already tractioning with success are Fixed Wireless Access (FWA) and private 5G. That is the core network operator business, i.e., the connectivity business.

Cloud-native and Edge Cloud Providers

The next level of business requires operators to transform into being true cloud-native and edge cloud providers. This is where the operator offers a high-performance computing platform for its own workloads at the edge and for third-party workloads. Operators will have the proximity to cope with the large amounts of data transfer and the low latencies required for supporting experiences such as extended reality for consumers and the ultra-low latency responses required for autonomous vehicles. The core workload that pays for all that infrastructure in a cloud-native truly 5G network is the actual radio workload, which also requires high-performance computing and low latency.

AI models in operation and full solution stack

The next opportunity for operators is to provide AI models in operation and the full solution stack. The explosion that’s happening at the moment is the ability to empower the universal sensor, which is the video camera, and the ability to identify objects, enable privacy and transform those objects, those video streams into the intelligence of seeing, which is transforming every single industry. As an operator industry and the telecom industry, we have the chance to enable that over wide area use cases, and there is no reason we cannot do that. However, we cannot do that just by being a connectivity business.

How do you recommend operators need to approach monetization strategies going forward?

Network operators need to clearly define and embrace the realities of the customers they’re delivering to. They must move away from this concept of 5G being the universal answer for everything, including world peace. Operators must embrace that 5G is highly valuable as a connectivity business. They must also embrace the value of high volume and low latency data and power the AI models. Moving into those two bigger and exploding value chains will enable operators to monetize connectivity in a new way.

Read the complete article in the 5G Magazine

Related Magazine Content

Magazine
Explore the evolving world of 5G: The roles of SaaS, APIs, AI, and Cloud Platforms in shaping the future of private network management.
Magazine
Explore the evolving world of 5G: The roles of SaaS, APIs, AI, and Cloud Platforms in shaping the future of private network management.
Magazine
Explore the pivotal role of DSPs in 5G network security, addressing the challenges and strategies for a secure digital future in this comprehensive guide.
Magazine
Explore the pivotal role of DSPs in 5G network security, addressing the challenges and strategies for a secure digital future in this comprehensive guide.
Magazine
Explore Nokia’s leadership in private 5G/LTE networks, showcasing a global reach with over 500 enterprise customers and 1500+ mission-critical networks across industries like healthcare, manufacturing, and more.
Magazine
Explore Nokia’s leadership in private 5G/LTE networks, showcasing a global reach with over 500 enterprise customers and 1500+ mission-critical networks across industries like healthcare, manufacturing, and more.
Magazine
Explore how Cox’s MOCN Neutral Host revolutionizes indoor cellular connectivity in education and healthcare, offering robust, cost-effective solutions.
Magazine
Explore how Cox’s MOCN Neutral Host revolutionizes indoor cellular connectivity in education and healthcare, offering robust, cost-effective solutions.
Magazine
Explore how John Deere is systematically adopting private 5G networks, addressing challenges arising from rapid growth of industrial IoT and network limitations.
Magazine
Explore how John Deere is systematically adopting private 5G networks, addressing challenges arising from rapid growth of industrial IoT and network limitations.
Magazine
Organizations globally are tapping into the vast potential of the Operational IoT market, from transforming weather monitoring in remote mines to ensuring safe drinking water in African communities. The real game-changer is the integration of reliable, cost-effective satellite connections, predicted to rise to tens of millions by 2030. These connections make it possible to transmit data periodically rather than in real-time, reducing costs and meeting the specific needs of industries like agriculture, shipping, and environmental monitoring. The challenge for Systems Integrators (SIs) is to ensure their Satellite IoT deployments are not only technologically viable but also commercially successful. Ensuring robust satellite coverage, cost-effective deployment, and prolonged battery life are essential to this business case. Forward-thinking SIs have already started their journeys, optimizing Satellite IoT solutions, proving its business worth, and preparing for large-scale deployments.
Magazine
Organizations globally are tapping into the vast potential of the Operational IoT market, from transforming weather monitoring in remote mines to ensuring safe drinking water in African communities. The real game-changer is the integration of reliable, cost-effective satellite connections, predicted to rise to tens of millions by 2030. These connections make it possible to transmit data periodically rather than in real-time, reducing costs and meeting the specific needs of industries like agriculture, shipping, and environmental monitoring. The challenge for Systems Integrators (SIs) is to ensure their Satellite IoT deployments are not only technologically viable but also commercially successful. Ensuring robust satellite coverage, cost-effective deployment, and prolonged battery life are essential to this business case. Forward-thinking SIs have already started their journeys, optimizing Satellite IoT solutions, proving its business worth, and preparing for large-scale deployments.
Magazine
The emergence of 5G New Radio NTN is set to revolutionize the satellite communication market by bridging the gap between terrestrial and non-terrestrial networks. Offering improved speeds, lower latency, and enhanced reliability, 5G NR unlocks new transformative use cases from smart cities to augmented reality. With 5G NR’s potential to beam signals from space, satellite communication will gain a competitive edge, providing powerful, seamless connectivity globally. Additionally, the unification of 5G standardization for both types of technologies promises heightened interoperability, allowing users to switch between networks effortlessly. This synergy presents a lucrative opportunity for businesses in both sectors, even as technical challenges persist.
Magazine
The emergence of 5G New Radio NTN is set to revolutionize the satellite communication market by bridging the gap between terrestrial and non-terrestrial networks. Offering improved speeds, lower latency, and enhanced reliability, 5G NR unlocks new transformative use cases from smart cities to augmented reality. With 5G NR’s potential to beam signals from space, satellite communication will gain a competitive edge, providing powerful, seamless connectivity globally. Additionally, the unification of 5G standardization for both types of technologies promises heightened interoperability, allowing users to switch between networks effortlessly. This synergy presents a lucrative opportunity for businesses in both sectors, even as technical challenges persist.