We discuss the following topics in this blog:
- CSPs changing business strategies for 5G.
- Key Challenges to 5G Implementation.
- 4 Key Enablers for 5G Monetization
- Key 5G Monetization Business Models
In addition to these topics, we shall also be answering the following FAQs:
- What is WiFi?
- What is an Optical Fibre Cable?
Digital transformations are occurring globally, and it is time for a well-planned approach for communication service providers (CSPs) to reposition their business and technology strategies to meet the rapidly changing market demands. The coming up of the 5G era is changing the digital landscape, as 5G offers an evolving opportunity- virtualization, slicing, and edge computing. With such enabling technologies, CSPs can jumpstart to 5G. Industry estimates indicate over 1 billion 5G connections by 2025.
5G infuses a new way of doing business; it enables more incredible collaborations, partnerships and offers an enhanced customer experience (CX). At present, over 50 CSPs globally are using 5G. Monetization is a crucial factor in the journey of CSPs. Investments in 5G need effective monetization strategies and support complex business models of B2B, B2C, and B2B2X.
Research company Juniper Research in its report titled ‘5G Monetization: Business Models, Strategic Recommendations & Market Forecasts 2021-2026, points that global revenue from 5G services will reach USD 73 billion by the end of 2021; rising from USD 20 billion last year, indicating growth of 250%., and expected to swell to over USD 600 billion by 2026. Further, the same report estimates that 5G will represent 8.5% of operator revenues by the end of this year.
Is 5G Ushering in a New Era for CSPs?
The disruption of 5G is making its way all over, and CSPs are already beginning to feel the heat of it. Traditional or legacy revenues streams will be offset with the fast-changing consumer demands. Over-the-top (OTT) players; CSPs are under considerable competitive and financial pressure. CSPs are being forced to look at new business models and seek new sources of revenue.
The urgency and need for heading towards 5G are required, as 5G offers gigabit data rates, low latency, reliability, and availability. It also opens up enormous opportunities for digital telecom companies and ecosystem partners to collaborate. The centric theme in 5G is it provides an excellent experience for customers with no limitation whatsoever.
5G will cause and bring in new experiences and is becoming a reality with Augmented Reality (AR) / Virtual Reality (VR) technologies Enterprises are exploring new services like remote maintenance guidance, drones for varied services, and new business models that support B2B and B2B2X.
What are the Key Challenges to 5G Implementation?
Migrating to 5G is not going to be easy; it has a few challenges to be met before the jump is made; however, these challenges are not scary, considering what 5G has to offer broadly:
- 5G services are more complex than 4G services, as more components get added to each service, increasing the volume of transactions to be handled by the revenue management systems than what was being held earlier
- Many CSPs believe that 5G service provider requirements for cost per charging transaction will be substantially lower due to the low margins on each service.
- Many service providers have to extend beyond their typical connectivity provider role and offer many other services their partners offer.
4 Key Enablers for 5G Monetization
Key 5G Monetization Business Models
Under 5G monetization, three broad business models have emerged – Business to customer (B2C), Business to Business (B2B), Business to Business to Any (B2B2X). The illustrated graphic explains the business models and the business benefits and is supported by the monetization model.
Major 5G Use Cases
Use cases that offer varied monetization opportunities and bring in new experiences:
Watch this webinar on how policy control and charging functions can be used as levers to monetize 5G-enabled use cases.
Everything as a Service (XaaS) market and Network as a Service (NaaS) opportunity apart from the traditional revenues translates into $400 B. 5G presents a wide range of opportunities and effective business models along with service offerings must be in place to enhance customer experience. The success of monetization and tech adoption depends on how well the CSPs can provide the best technology and how well they partner in the ecosystem and provide the best CX.
STL understands that 5G monetization is critical and has drawn upon pillars for 5G monetization that will rest on fostering partnerships, enabling network platforms and with customer focus. STL superset products such as dEP, PCF, Network Slicing and CHF provide new levers of 5G Monetization to capitalize Smart Everything, IoT, IIoT, and Enterprise automation. STL PCF, CHF, PCRF and the Pricing Engine enable diverse pricing, billing and charging models supported by Enterprise Marketplace to launch and monetise 5G services.
Along with our sophisticated dEnterprise, 5G Monetization is made easy by overcoming the biggest deterrent in 5G monetization, which is the lack of analytics driven, outcome-based partner and enterprise customer journeys for all personas. It is an out-of-the-box business support solution for various enterprise class services including Metro E, SD-WAN, IT Services and IPVPN. The different charging models can be configured based on parameters such as SLA, Usage, QoS–based, Bandwidth-based and more.
Reach out to us to know more about our end-to-end 5G everything stack services.
What is WiFi?
Put simply, WiFi is a technology that uses radio waves to create a wireless network through which devices like mobile phones, computers, printers, etc., connect to the internet. A wireless router is needed to establish a WiFi hotspot that people in its vicinity may use to access internet services. You’re sure to have encountered such a WiFi hotspot in houses, offices, restaurants, etc.
To get a little more technical, WiFi works by enabling a Wireless Local Area Network or WLAN that allows devices connected to it to exchange signals with the internet via a router. The frequencies of these signals are either 2.4 GHz or 5 GHz bandwidths. These frequencies are much higher than those transmitted to or by radios, mobile phones, and televisions since WiFi signals need to carry significantly higher amounts of data. The networking standards are variants of 802.11, of which there are several (802.11a, 802.11b, 801.11g, etc.).
What is an Optical Fibre Cable?
An optical fibre cable is a cable type that has a few to hundreds of optical fibres bundled together within a protective plastic coating. They help carry digital data in the form of light pulses across large distances at faster speeds. For this, they need to be installed or deployed either underground or aerially. Standalone fibres cannot be buried or hanged so fibres are bunched together as cables for the transmission of data.
This is done to protect the fibre from stress, moisture, temperature changes and other externalities. There are three main components of a optical fibre cable, core (It carries the light and is made of pure silicon dioxide (SiO2) with dopants such as germania, phosphorous pentoxide, or alumina to raise the refractive index; Typical glass cores range from as small as 3.7um up to 200um), Cladding (Cladding surrounds the core and has a lower refractive index than the core, it is also made from the same material as the core; 1% refractive index difference is maintained between the core and cladding; Two commonly used diameters are 125µm and 140µm) and Coating (Protective layer that absorbs shocks, physical damage and moisture; The outside diameter of the coating is typically either 250µm or 500µm; Commonly used material for coatings are acrylate,Silicone, carbon, and polyimide).
An optical fibre cable is made up of the following components: Optical fibres – ranging from one to many. Buffer tubes (with different settings), for protection and cushioning of the fibre. Water protection in the tubes – wet or dry. A central strength member (CSM) is the backbone of all cables. Armoured tapes for stranding to bunch the buffer tubes and strength members together. Sheathing or final covering to provide further protection.
The five main reasons that make this technology innovation disruptive are fast communication speed, infinite bandwidth & capacity, low interference, high tensile strength and secure communication. The major usescases of optical fibre cables include intenet connectivity, computer networking, surgery & dentistry, automotive industry, telephony, lighting & decorations, mechanical inspections, cable television, military applications and space.