Monetising 5G goes beyond the service propositions that contribute to a telco’s bottom line. STL Partners considers the following four factors to be foundational to 5G monetisation:
- Value-adding service propositions, built on top of network connectivity (Services)
- A network architecture that can deliver the features and flexibility demanded by such propositions (Network/OSS)
- IT/BSS to facilitate provisioning of such services and to support a leading customer experience (IT/BSS)
- The organisation and culture to sustain continuous innovation and coordinated efforts (Organisation)
As recent STL reports on monetising and commercialising 5G have shown, early 5G propositions have focused on “legacy” telco services. 5G smartphone and data plans and fixed wireless access propositions have been a primary focus for commercial efforts to date, though some telcos are starting to shift towards “new” propositions, particularly in the enterprise segment, where edge computing and private network solutions are becoming more prevalent.
The true monetisation potential of 5G lies in the telco ability to respond to customer needs and expectations shaped by their interactions with the likes of hyperscalers and other software-centric service providers. Telcos must be able to participate in complex value chains and ecosystems in order to extract the maximum revenue unlocked by 5G.
STL Partners coverage and analysis
We endeavour to shed light on each of the underlying foundations to help telcos transition to this “new” world of monetisation:
- Services: Research on consumer and enterprise 5G propositions shows how telcos are making progress on their commercialisation journey (e.g. Monetising 5G with consumers: What are the options?, SK Telecom’s journey in commercialising 5G) ;
- Network/ OSS: The Telco Cloud and Network Futures research streams support the development of cloud native, accessible and instructible networks that can support innovative and complex 5G services (see our Telco Cloud Manifesto);
- IT/BSS: A new webinar on Driving innovative 5G monetization and user management will expose the processes and capabilities (IT/BSS) required to commercialise 5G (click the link to register);
- Organisation: Our Transformation research stream continues to promote organizational thinking and practices to secure new, innovation-oriented ways of working (e.g. Driving the agility fly wheel: The stepwise journey to agile)