Combining private 5G and edge computing: The revenue opportunity

Edge Insights, Private Networks

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As edge and 5G investments accelerate, operators search for the business case for these new technologies. In this report, we highlight the enterprise opportunity for operators in combining private 5G and edge, to deliver innovative and holistic solutions to enterprise customers.

Executive summary

  • Operators are looking for new services they can deliver to their enterprise customers. If it can be done beyond the borders of their country of operation, then even better.
  • A solution that combines private 5G connectivity with edge computing is one example of a new service that fits this criterion.
  • By offering these technologies as part of a bundled solution for the enterprise, operators can ensure operational simplicity while delivering a quality of performance that cannot be achieved with existing technologies. This can both optimise existing digital use cases and unlock new ones.
  • While private 5G and edge computing can be used to deliver a multitude of use cases, we focus on five use cases within three verticals – healthcare, ACE (architecture, construction and engineering) and retail. These use cases are good candidates as early anchor applications that will drive the adoption of private 5G and edge computing solutions.
  • A private 5G and edge computing offering also provides an opportunity for operators to work with partners to provide more than just the connectivity. In taking on roles like systems integration and reselling applications, operators can become more strategic partners for enterprises and derive more revenues.
  • We explore three potential business models and their associated benefits in the paper below. We also explore an early example of this solution in practice, developed by South Korea Telecom in conjunction with their partners Dell Technologies and VMware.

Table of Contents

Identifying the opportunity: proven demand for private 5G and edge computing……………………………….5
Demand for edge computing and 5G private networks: addressing industry pain points ……………….6
MEC in a box: driving simplicity and performance ………………………………………………………………………………8
TCO comparison: MEC in a box to reduce costs for enterprises ……………………………………………………10
Access technology: why use private 5G?………………………………………………………………………………………..11
Taking the solution to market: a new revenue opportunity for operators ………………………………………….13
Next steps for operators to capitalise on this opportunity……………………………………………………………..15
Appendix …………………………………………………………………………………………………………………………………………….17
Methodology: prioritising use cases……………………………………………………………………………………………….17
Methodology: cost of ownership model …………………………………………………………………………………………17
Methodology: revenue model………………………………………………………………………………………………………….18