The 5G Opportunity for Service Providers

by Dieter Hashimoto June 14, 2021 in Customer Experience, Industry Trends 0

The shift to 5G is well underway, with the technology expected to account for 15 percent of all mobile connections as soon as 2025. But it hasn’t come for free. By the same year, it is estimated that telecom operators will have invested up to $275 billion to build out 5G.

The question is – how do they get a return on that investment? With the initial funding for infrastructure and service rollouts required before a single customer has been signed up, ROI for 5G can seem like a world away. In this post, we’ll take a closer look at 5G monetization and how service providers can make the most of it.

What are the benefits of 5G?

One of the central issues with 5G is that many service providers will have a hard time selling its benefits. 4G networks are far from rudimentary and have provided consumers with exactly what they need for several years. Streaming, browsing, communicating – all with relative success and a low price. Will they really want to upgrade to 5G at a higher cost?

The answer should be yes. 5G has a number of benefits over its predecessor, especially when it comes to business and enterprise users.

Bandwidth

First and foremost, 5G offers gigabit bandwidth – something which 4G could only touch upon at its very best. To put it in context, 4G has a peak speed of 1GB per second, while 5G could reach up to 20 times that. The result? 5G can handle the most data-rich devices and applications without any compromise on performance.

Latency

With 5G, round-trip times (RTTs) are reduced to less than 1ms compared to an average of around 50ms for 4G networks. That allows for virtual communications becoming much closer to a face-to-face experience, as well as enabling enrichment of these interactions through technologies such as AR, VR and holograms.

Slicing

Network slicing refers to the ability to offer multiple virtual networks within a single network infrastructure. This is another major benefit that comes with 5G networks, allowing providers to tailor virtual networks to specific user groups or departments, making it easier to contain issues like cyber-attacks in the process.

Software

Above all else, 5G moves away from hardware-based networking that has long been the status quo. It not only maximizes the advantages of virtualization through newer technologies such as software-defined networking, but also captures the benefits of leveraging different models such as “white box” servers.

Monetization of 5G

A $275 billion investment in 5G is substantial to say the least. It offers clear value to enterprise customers, delivering an enriched work-anywhere experience with a wired-like performance. But how can service providers make a healthy return on their significant upfront cost?

Finding a partner who truly understands the benefits of unlocking 5G is key. Building the right strategic partnerships will ensure that the high investment in rolling out 5G comes with a tangible return – in the form of both financial benefit and customer experience.

Why Aura?

Aura offers a full suite of enterprise-grade solutions that drive the consumption of 5G in the enterprise space. Offered with little to no investment, service providers can grow their business without distraction or unnecessary cost to their core business.

Underpinned by a Global Managed Service, our Global Voice in Microsoft Teams and our Cloud Contact Center solutions enable a work from anywhere strategy and support remote working securely and reliably – all whilst driving that much needed consumption of 5G to deliver return on its costly outlay.

If Aura can help you to monetize on your 5G investment, we’d love to hear from you. Get in touch today to kick off the conversation.