Tuesday, March 7, 2023

Why the industry is looking at subscription services to monetize 5G in the WPL


According to insiders and trade experts, the discussions have shifted beyond upload speeds and faster data downloads. At the Mobile World Congress, which ended last week in Barcelona, the 5G sales pitch was everywhere. Instead, the industry is considering how to capitalize on the value of 5G. However, the issue that remained unresolved for a significant number of executives who were gathered at the most significant exhibition for the connectivity industry in the world was how to move beyond the rollout phase and create new business opportunities so that each stakeholder involved could begin making money.

"If you're about to switch phones, you probably will get a 5G smartphone and, with it, a 5G subscription. Therefore, there is a separate automatic update for that. In an interview with indianexpress.com, Patrik Cerwall, Head of Strategic Marketing, Business Area Networks at Ericsson, stated, "But then there is also a need for some users who want higher speed, or perhaps they want to do gaming."

Cerwall sees 5G as a service as a huge opportunity in the future, and operators in Europe, the United States, Japan, and some parts of the Middle East are figuring out new ways to make more money. Telecom providers are also working in the same direction in India to make money from 5G subscriptions, which are where the money is. Cerwall added, "There is a new service innovation that is occurring, but it also depends on how you manage to sell it." He gives the example of how, in their respective nations, some operators provide cloud gaming to customers as a service, creating new opportunities for them to charge customers for advanced packages that guarantee latency and slice networks.

The next generation of mobile internet connections, known as 5G or fifth-generation mobile services, offer significantly faster data download and upload speeds. Reliance Jio and Airtel launched 5G services in India last year. The 5G rollout in major Indian cities will be completed in the coming months, according to both operators' assurances. In the country, Airtel already has over 10 million 5G subscribers.

However, the construction of 5G networks necessitates significant capital expenditures. In return, 5G significantly increases the volume of data that can be captured and processed as well as the speed of the network. This opens up new use cases and revenue opportunities that were unavailable during the 3G-4G era.

Avneesh Prakash, Vice President of Mobility and IoT at Tata Communications, stated, "5G investments will only be recovered if they can be monetized, unless they mean something consumable by the end user." Prakash, who is in charge of Tata Communications' end-to-end mobility platform MOVE, asserts that users could benefit from 5G, and his clients, in particular, are well aware of this.

Beyond smartphones, connected automobiles will be one of 5G's main selling points. Automobile manufacturers must cut costs. They need to do it effectively and find new ways to make money. Prakash elaborated, "The entire model of the automotive industry is shifting from ownership to subscription-based." All OEMs want to participate in the service economy in addition to focusing solely on car sales as a revenue stream.

Prakash said that connected cars are another area that would benefit immediately from usage and revenue. Think about software updates that can be guaranteed over the air or entertainment options like movies, music, or gaming in a car. Cars will become experience nodes that can be paid for.

Exchange specialists and insiders said the discussions have moved past transfer speeds and quicker download information. According to Prakash, 5G is bringing many sectors together and jointly working on solutions to problems that could not be addressed previously due to the lack of the appropriate technology and instruction. Instead, the industry is considering how to capitalize on the value of 5G. He asserts that "this should result in and will result in actually saleable propositions to the end user," particularly in reference to the auto industry.

Until further notice, 5G has been discussed more according to a shopper perspective however the genuine treasure trove could be the endeavor area which might assist with scaling the relevance of 5G in genuine terms and carry money to extend the organizations. " Cerwall concurred, saying, "5G monetization is not just for consumers but also for businesses." 5G can be used in a variety of enterprise applications, including IT support and security features as well as various productivity solutions.

Although Cerwall believes the business will continue for some time, he stated that, at least for the time being, the consumer sector is driving the majority of 5G adoption. When asked if the enterprise market has a better chance of making more money in the long run, he stated, "It depends a lot on price positioning in the market and how the operator actually decides to go to market on it."

The use of 5G as a network backbone for private enterprise upgrades is another possibility. However, growth in the consumer use case may take longer than anticipated. The stoppage in the cell phone market which actually plays a focal part to play in 5G membership overhauls as well as potential traffic climbs not too far off could hose the capability of 5G and its span.

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