The 4 foundations of 5G monetisation

5G monetisation

5G commercialisation 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, specifically those built on top of network connectivity (5G), that can be commercialised (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 and 5G commercialisation (IT/BSS)
  • The organisation and culture to sustain continuous innovation and coordinated efforts (Organisation)

As recent STL reports on 5G commercialisation and monetisation have shown, early 5G commercial deployments have relied on propositions that focus on “legacy” telco services. 5G smartphone and data plans and fixed wireless access propositions have been a primary focus for 5G commercialisation 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 commercial deployments 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 5G commercialisation: