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How to Monetize 5G? | BT

How to monetize 5G? That is a question that entire telecoms sector is asking, and there isn’t a quick answer - 5G isn’t a one-size-fits-all technology.

This article appears in the 5G Magazine published in February 2023

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How to Monetize 5G? | BT

That is a question that the entire telecoms sector is asking, and, in truth, there isn’t a quick answer 5G isn’t a one-size-fits-all technology. So, it’s important to take a customer-first approach, understand the problem and then provide the solution and unlock the business benefits.

Private Networks (PNs)

Of course, there is the obvious consumer play. Fixed wireless access is a great volume option for small site primary or backup connectivity. But the area I’d like to focus on is 5G Private Networks (PNs). Because I am in no doubt that as an underlying technology, 5G PNs will be a key enabler for businesses across the globe over the next five to ten years – switching on the benefits of digital tech across different sectors. I speak to business customers regularly, and I am yet to find any industry that will just buy a 5G PN just because it’s 5G. I hear everything from “my Wi-Fi is fine for my business right now,” to “yes, I’d love a private network, but I cannot afford one.”

So, rather than being about commercializing 5G, are we actually talking about commercializing the benefits that 5G enables?

I believe it’s the latter.

New Business Models

And this is where new business models become significant, such as creating a marketplace for IoT devices or hosting virtual and augmented reality applications. Equally, identifying where customers can unlock value:

Reducing their reliance on public cellular networks
Lowering the cost of connecting devices and machines to the internet
Increasing the efficiency of operations

At BT, we work very closely with customers who are embarking on a digital transformation to understand how they can transform as a business. What benefits are they looking to achieve, and what pain points or blockers stop them from achieving their business aims? It requires deep trust, solid relationships at all levels, and a consultative engagement lasting for months. In essence, we see ourselves as partners for our customers: building the business case for digitizing their operations, helping them transform, and unlocking business value as a result.

Faced with growth opportunities in renewables but also challenges such as regulatory and government enforcements, sustainability targets, lack of workers with the right skills, and ongoing cyber threats, they are turning to technology as a key enabler to address their business goals.

One industry that we see accelerating their digital plans is the Energy sector, including Oil & Gas.

Areas such as IoT, AI, automation, and big data are all underpinned by the low latency, high throughputs, speed, and security, that 5G PN’s can provide.

In fact, with some customers, we’re seeing up to 75% of their annual IT budget aimed at these new technologies.

Key themes from the oil and gas industry

Remote operations and communication

Operations often take place in remote locations with limited or unreliable communication infrastructure. This makes it difficult to monitor and control operations effectively and to transfer data and communicate with personnel on-site. 5G PN’s can provide reliable, high-speed connectivity to overcome these challenges.

Safety and Security

There can be several safety and security risks, including the potential for leaks, spills, and other hazards. 5G PN’s can support the use of connected devices and sensors to detect and prevent such hazards.

Efficiency and Productivity

Operations can be complex and resource-intensive, with many different processes and equipment to manage and maintain. 5G PN’s can support automation and real-time data analysis to improve efficiency and productivity and reduce the need for manual labor.

Training and Maintenance

Training personnel and maintaining equipment and facilities can be costly and time-consuming. 5G PN’s can support virtual and augmented reality for training and maintenance, making things more efficient and cost-effective.

Data-intensive applications

Operations generate a lot of data, which needs to be analyzed and used to make decisions. 5G PN’s can support the transfer of large amounts of data to data centers for analysis in real-time, allowing for faster decision-making and improved safety and efficiency.

Conclusion

It’s important to think big but start small. What is the art of the possible? And where do we begin? A simple methodology is to map out use cases and potential benefits against three macro transformation drivers: productivity, efficiency, and safety. We normally reach a core prioritized list of use cases that will deliver enough value to our customers, which more than offsets the cost of investment.

When it comes to advancing further adoption of 5G PN’s, it’s important to focus on outcomes rather than just 5G. It’s about using a test-and-learn approach, working in partnership, and being agile in an environment that is constantly evolving.