5G is a game of two halves, they say – because the industry is between rollout of 5G NSA and 5G SA architectures, and because there is everything to play for. The following is the introduction to a new Market Pulse report from RCR Wireless about the state of 5G, globally. Click here, or on the below image, to download the full report.
As we all know, 5G has a money-making problem. As the telecoms industry breaks for half-time oranges, between an inward-looking 5G NSA first-period and an outward-looking 5G SA second-period in the global two-phase game of 5G network building, there is lots to consider about how to to speculate and accumulate with its richly-hyped and richly-featured new network technology. This report considers all of this – about where the telecoms industry is today with global 5G rollouts, and where it is going to monetize them.
A quick look at some of the stats and chats within this report says nothing is easy: only just over half of all public networks (53 percent; about 350 out of 650) have even half-strength 5G NSA technology; only 10 percent (60) have full-strength 5G SA; barely half a percent have max-strength 5G Advanced (5G-A) technologies– and those are only localised deployments. So it is not even half time, anyway, and even the most progressive operators are struggling to make more than $3 per month per user from their expensive 5G investments. So it looks, on one hand, like a moribund state.
But, as we all know, 5G is a developing technology; most carriers are stuck with release-15 level 5G – when the real smarts come with release 16, and particularly 5G-A era releases 17 and 18. And there are hopeful outliers, already. FWA is a revelation, we hear – a service that makes a difference for users, and one that drives separate bundled revenues for carriers. FWA is already in almost half of 5G networks, and a quarter of all networks. But what else? Private 5G is a thing, for sure. As Nokia said in an aside at MWC in March, ‘how else do you make money from 5G – apart from with FWA and private networks?’.
Well, this report plots the ways; it assesses the industry’s gambles on new applications like AR-lite tethered smart spectacles, hyper connected smart cars, and the satellite and drone economy, as well as new features like RedCap, slicing, and other differentiated network services. It also considers new sectors in the developing enterprise space. But they are all gambles, in the end – which need to be carefully selected and stacked.
Top takeaways
1 | Monetizing 5G remains a challenge – but FWA stands out
Operators continue to struggle to generate new revenue from 5G, with FWA the most successful and lucrative 5G service so far.
2 | Enterprise represents the biggest opportunity for 5G growth
New monetization potential lies in solutions such as private networks, slicing, V2X, drones, and industrial IoT – more than traditional consumer services.
3 | Telcos must transform themselves to succeed with 5G
Telcos need to undergo their own transformations, from generalised to tailored services – requiring new skills, partnerships, and full 5G SA systems.
Click here to download the report.
