Globally, digital transformations are occurring, and it is time for communication service providers (CSPs) to reposition their business and technology strategies to meet the quickly changing market demands with a well-planned approach. The arrival of the 5G era is altering the digital world, as 5G provides new opportunities such as virtualization, slicing, and edge computing. CSPs can get a head start on 5G with such enabling technologies.
5G ushers in a new era of business, allowing for even more extraordinary collaborations and partnerships, as well as an improved consumer experience (CX). Over 50 CSPs are now using 5G globally. In the path of CSPs, monetization is critical. 5G investments require strong monetization methods and the ability to support complicated B2B, B2C, and B2B2X business models.
What is 5G monetization?
The strategies, business models, and methods that CSPs must implement to make income from their infrastructure investments are referred to as 5G monetization. Consumer business will not be enough for CSPs to recoup their capital investments.
CSPs will be able to provide a variety of new services as a result of 5G, which will necessitate improved monetization tools, new business models, and a shift in mindset from standard voice and data subscriptions. These services include those made possible by 5G capabilities, such as
- CSPs can handle ever-increasing data speeds, user density, and traffic capacity with Enhanced Mobile Broadband (eMBB).
- Massive Machine-Type Communications (mMTC): supports the IoT ecosystem, in which a huge number of devices with various policies are connected to the network.
- URLLC (Ultra-Reliable and Low Latency Communications) meets latency requirements, particularly for mission-critical and safety-critical applications.
- Network Slicing allows operators to establish numerous autonomous networks using shared physical infrastructure, each catering to distinct QoS requirements for bandwidth, storage, computing power, and other factors.
Top 7 Strategies & Models for CSPs in 2022
CSPs must focus on these seven critical enablers to meet the needs of their individual and enterprise customers, as well as to profit on the possibilities of 5G:
Business model based on a platform
CSPs must modify their business models to serve as platforms that connect consumers with producers as the 5G ecosystem extends the services and apps that can be consumed over the network. Operators can create a variety of industry-specific business models based on consumption (APIs, analytics, and so on), shared infrastructure, customer journeys, and more with a platform-based business model. The platform business model can also be used to create digital ecosystems. These ecosystems, often known as digital markets, bring together businesses and consumers.
5G operators may use their existing infrastructure to build various alliances and provide a platform for product and service creators, manufacturers, and merchants. CSPs may support and commercialise these services thanks to network slicing.
Core Network driven by SBA
SBA architecture along with 5G core and cloud infrastructure are major network enablers, allowing advanced services such as URLLC, network slicing, and more to be launched. The way networks are used and monetized is about to change because of network slicing. While sharing network resources allows for more efficient use of infrastructure, it necessitates the development of innovative billing systems to accommodate the various use cases it enables. One slice may require low-latency QoS, while another requires ultrafast speed, and a third requires a large amount of bandwidth. In order to monetize these network slices, dynamic near-real-time billing and policy control are required.
Innovation that is centered on the customer
Customer experience (CX) is a primary driver of success today, driving operators to focus on customer service and service monetization in all elements of their organization, from product design to collaborations.
Innovative business offers, digitized experiences, strong network performance, service availability, and reliability are all part of ensuring good CX. It also means that billing, charging, settlement, and customer support operations must be centered on the customer experience. Operators should consider automating CX by incorporating artificial intelligence (AI) into back-office procedures like order management, as well as using chatbots and automation in payment and self-care apps.
With Network-as-a-Service, you can enter the B2B market (NaaS)
The business-to-business (B2B) market has the most potential for 5G monetization. CSPs are leveraging Software-Defined Networking (SDN) and 5G networks to provide new subscription services to their corporate clients with unprecedented flexibility and precision.
To maximize the network, invest in a Robust partner ecosystem
5G monetization techniques necessitate some creative thinking. CSPs must collaborate with partners to provide value-added services as they explore new industry use cases for their 5G networks.
Value-added services blur the distinctions between what a CSP can do on its own – within the network – and what a partner can do to optimize the network.
5G and IoT give up a slew of new business prospects, including shared infrastructure, revenue-sharing, and linking many devices to a single network, among others. Partnerships can be monetized depending on SLAs and QoS, volumes, product/service type, stocks, infrastructure usage, API and service utilization, and so on. Subscription and transaction-based models can then be implemented by partners, charging customers based on their usage in terms of time, volume, production, and other factors.
Provide dedicated network slices.
With a dedicated slice of the 5G network, a business user can enjoy fixed wireless access with increased end-to-end security. Slices are private network slices suited for drone surveillance, gaming, and virtual reality applications (VR). Consider 5G slicing as a way to acquire your own slice of the pie.
CSPs can use network slicing to test new pricing structures for apps, enterprise collaborations, and even NaaS. There will be a limited number of slices at first, but as standards improve, the number will increase. Each network slice can be built around carefully controlled criteria such as network priority and service quality.
Communications service providers (CSPs) must innovate, monetize, and scale quickly to harness the promise of 5G to differentiate consumer experience while also enabling new revenue-generating opportunities. To stimulate innovation, attract partners, and maximise 5G B2B and B2B2X income streams across every market sector, CSPs must form digital ecosystems with other providers of technology, devices, and services.
Binary Blogger has spent 20 years in the Information Security space currently providing security solutions and evangelism to clients. From early web application programming, system administration, senior management to enterprise consulting I provide practical security analysis and solutions to help companies and individuals figure out HOW to be secure every day.