Analyst firm Frost & Sullivan has released a report on 5G operator strategies in Europe and forecast to 2024.
Earlier, ABI Research said mobile service providers should not wait for 5G to define their revenue opportunities from enterprises mainly utilities.
Most European operators including Vodafone, Telefonica, Deutsche Telekom and British Telecom will need incentives to upgrade to 5G technology from 3G and 4G networks, the report said.
Recently, Deutsche Telekom CEO said the telecom operators in Germany will need to spend less on spectrum than on networks to offer cost effective services to their wireless customers in the country.
Vodafone UK, which competes with BT-owned EE, will be starting 5G trials in selected cities since the telecom operator does not want to rush its investment. The main reason is the lack of availability of 5G smartphones for offering high-speed Internet.
Telecom Italia has started showing the 5G capability for both business and retail customers in the country.
The Frost & Sullivan report said network sharing, network leasing, and software solutions can reduce upfront costs, while partnerships with companies in vertical markets will ensure additional revenue.
Suggestions
Network operators should conduct trials in association with companies from vertical markets to prepare for the 5G launch of alternative services supported by 5G technology.
Telecom operators in Europe should focus on vertical markets such as manufacturing, smart city systems and healthcare.
Mobile service providers should collaborate with suppliers of over-the-top (OTT) services offering sports, music, feature films and/or TV series to retain customers.
Telecom service providers can form relationships with companies that provide tried-and-tested cybersecurity solutions.
“As the number of connected devices is set to rise exponentially over the next decade, there will be an even stronger push to adopt 5G technologies, especially in densely populated urban areas,” said Fiona Vanier, Digital Transformation Senior Industry Analyst at Frost & Sullivan.
The research report said 5G technology could be the ideal tool to enable driverless cars, smart cities, and Industrial IoT (IIoT) with the rise of IoT.
ABI Research in a recent report said mobile service providers’ opportunity in manufacturing is forecast to be only $2.6 billion by 2022.
5G will not be in the factory for few years, and to be successful, a wider alignment between industrial vendors and MSPs is essential.
Partnering with market leaders will be essential – the recent announced partnership between Orange and Siemens is an example of what should be a growing trend.
“The manufacturing market looks for enhancements, not disruption, and for solutions, not technologies. MSPs should tailor their offerings, including 5G, to these enhancements and solutions,” said Pablo Tomasi, senior analyst at ABI Research.
Don’t wait for 5G
ABI Research in another report said that the utility segment is prone to disruption, ripe for digitalization, and forecast to present a US$5.3 billion opportunity by 2022. MSPs must use UnTelco strategies now, rather than wait on the promise of 5G.
Pablo Tomasi, senior analyst at ABI Research, said: “MSPs must use their network expertise to help utilities manage and connect their dispersed networks, they must deliver solutions that support utilities’ digitization efforts in smart workforce and security, and they must partner with utilities to create synergies in growth areas such as the smart city.”
MSPs connectivity can be an entry point but cannot be the end goal. Otherwise, they could miss out on the expansion of related opportunities as happened with the explosion of over-the-top (OTT) services.
Orange delivers off-grid energy solutions across several of its African markets, creating a new customer channel, building an ecosystem, and expanding the use of its mobile money offering.
Turkcell eyes the energy retail market to strengthen its position in the highly potential smart home market.
If MSPs wait for 5G, they will be late to lead the digitization of the markets as other players will already be established.
Baburajan K
