Introduction

Operators today provide connectivity to millions of people who are embracing a more digital lifestyle. They are also facilitating this shift for enterprises as they undergo digital transformation. To make their 5G investments profitable, CSPs need a monetization strategy that takes a multipronged approach. In addition to direct monetization, they must include partnerships, digital ecosystems, as well as unique and innovative business models. 5G monetization demands that communications service providers (CSPs) reshape and evolve their revenue management systems to ensure they can support complex B2B, B2C, and B2B2X services. So, what are the key enablers for this change?

5G use cases ready to be monetized 

5G means CSPs will be able to offer a host of new services that require advanced monetization platforms, new business models, and new ways of thinking from traditional voice and data subscriptions. These include services enabled by 5G capabilities such as:

• Enhanced Mobile Broadband (eMBB): enables CSPs to handle ever-increasing data rates, user density, and traffic capacity.
• Massive Machine-Type Communications (mMTC): enables the IoT ecosystem, where a large number of devices are connected to the network with varying policies.
• Ultra-Reliable and Low Latency Communications (URLLC): caters to latency demands, especially for mission-critical and safety-critical applications.
• Network Slicing: enables operators to use shared physical infrastructure to create multiple autonomous networks, each one catering to different QoS requirements for bandwidth, storage, processing power, and more.

The key enablers for 5G monetization

To cater to the needs of their individual and enterprise customers, and to capitalize on the possibilities of 5G, CSPs need to focus on these four key enablers:

Platform-based business model

As the 5G ecosystem expands the services and applications that can be consumed through the network, CSPs need to evolve their business models to serve as platforms that connect consumers with producers. A platform-based business model enables operators to build a wide range of industry-specific business models based on consumption (APIs, insights, and so on), use of shared infrastructure, customer journeys, and more. Operators can also set up digital ecosystems using the platform business model. These ecosystems or digital marketplaces connect businesses with consumers.

5G operators can leverage their existing infrastructure to forge diverse partnerships and offer a platform to producers, manufacturers, retailers of products and services. Network slicing enables CSPs to support and monetize these services. These partnerships can span across industry verticals such as connected cars, smart cities, industrial IoT, and more.

CSPs today are associated with multiple diverse service chains and can leverage their customer data and analytics to create highly profitable platforms that are mutually beneficial for customers and the providers of the service. They can be used to introduce more advanced offerings. For instance, Telefónica UK provides an insurance offering called O2 Drive, leveraging customer data insights to create contextual offers at better rates. The app uses GPS tracking to monitor customer journeys, giving each customer a score to tell them how safely they drive and providing tips to improve.

Robust partnership ecosystem

One of 5G’s core transformative abilities is in enabling service providers to forge diverse partnerships, thus enabling B2B2X ecosystems. 5G and IoT open business opportunities at multiple levels, with business models such as shared infrastructure, revenue-sharing, connecting multiple devices on a single network, and more. Operators can monetize partnerships based on SLAs and QoS, volumes, product/service type, inventories, infrastructure use, API and service consumption, and so on. Partners can, in turn, implement subscription- and transaction-based models, charging consumers based on their usage in terms of time, volume, output, and more.

CSPs can facilitate and monetize diverse and advanced telco as well as non-telco applications, building a partner ecosystem that spans across industries. Use cases such as road safety with self-driving vehicles and smart traffic management hold immense ROI potential. Logistics companies can be provided platforms to maximize business efficiency through real-time fleet tracking, route and fuel optimization, and more. Smart grids and utility providers can use data from IoT and connected devices to manage distribution. Healthcare professionals can benefit from platforms that enable telemedicine and remote surgeries. Agriculture can employ connected devices such as drones, sensors, and cameras to monitor soil and crop quality. Manufacturing units and factories can connect all devices on the floor from larger machines right down to a screwdriver to optimize efficiency. For retail applications, operators can help enable smart home portals and apps, digital ecosystem platforms, and much more.

Customer-focused innovation

Customer experience (CX) is a major driver for success today, compelling operators to shift their focus to customer service and service monetization in all aspects of their business, from designing products to the partnerships they build.

Ensuring good CX includes innovative business offerings, digitized experience, high network performance, service availability, and reliability. It also means billing, charging, settlement, customer support processes need to be CX-driven. Operators must look at automating CX by integrating artificial intelligence (AI) in their back-office processes such as order management as well as by implementing chatbots and automation in their payment and self-care apps.

So, how do operators monetize CX? A major part of it is ensuring simple and easy-to-implement pricing structures. Offering asset-light business models is especially beneficial to enterprises, where CSPs can provide the underlying IT and charging infrastructure to businesses, granting them full control of the services they offer to their consumers without having to invest in their own infrastructure.

Monetization models can be based on a host of different parameters depending on the applications, such as UE/MAC address for IoT and I-IoT applications, infrastructure use, inventories, geographical locations, time of day, demand, and more.

SBA core driven networks

SBA architecture with 5G core and cloud infrastructure are key enablers to the network, helping launch advanced services like URLLC, network slicing, and more. Network slicing is set to revolutionize how networks are used and monetized. And while sharing network resources means more efficient use of the infrastructure, it demands advanced charging systems to cater to the diverse use cases it supports. One slice may demand low-latency QoS, while another demands ultrafast speed, and a third demands high bandwidth. Monetizing these network slices demands dynamic near-real-time charging and policy control.

In addition to QoS, 5G monetization platforms enable charging for network use, based on the number of connections, data frequency, real-time versus non-real-time operations, location precision, and more.

Solutions that maximize 5G monetization capabilities 

In consumer as well as enterprise applications, 5G supports endless possibilities of business models and charging use cases. They will be required to support online as well as offline charging, scaling to handle the demands of IoT billing so they can charge small amounts at a massive scale. They will also need to support a range of revenue-sharing arrangements with n-level hierarchies. CSPs will need to ensure they are constantly innovating to support charging with evolving services like on-demand network slices.

As CSPs make the transition to 5G, successful monetization relies largely on the flexibility of an operator’s billing, charging, and policy infrastructure systems to support multiple pricing models. They also need to implement a next-gen partner management solution to handle diverse partnerships. Implementing a future-proof digital BSS/OSS infrastructure helps begin their journey of digital transformation, enabling them to get the most out of their 5G monetization infrastructure.

Introduction

Partnerships are the future of 5G, and they will shape the future of the CSP. Success will rely on the systems and infrastructure that enable CSPs to create new and innovative business opportunities, helping build a vast and diverse partner ecosystem. Increasing their 5G revenue will mean that telecom operators will need to look beyond offering network coverage and support more advanced uses and outcomes with the connectivity they provide.

The use of technology is increasing in sectors such as agriculture, logistics, energy, manufacturing, automotive, and transportation, helping drive business decisions, improve processes, optimize resource use, and secure new revenue streams. Many have also begun using RFID tags, sensors, cameras, drones, and other real-time surveillance and data-gathering devices. As more and more industries begin to digitize their businesses and use cloud-based infrastructure, they need robust and reliable network connectivity to ensure they can efficiently monitor and operate their assets, support process automation, and handle large volumes of data unlike ever before. And that’s where 5G comes in.

Through private or enterprise 5G, CSPs can enable businesses to run their own secure and reliable networks. Network slicing also reduces the need for businesses to invest in dedicated infrastructure. CSPs can optimize and monetize their network by dividing it into dedicated “slices” for different enterprise customers, allocating resources depending on the use case.

Top 8 industries that benefit from 5G partnerships

Partnerships provide infinite possibilities for CSPs, though some industries are more likely to be early adopters of the technology. Some of these industries and their use cases include:

Transportation

5G will revolutionize transport: a recent World Bank report states that 5G holds the potential to accelerate several evolving technologies such as sharing economy and digital platforms, electric and autonomous vehicles, and advanced business models like Mobility as a Service (MaaS). The report also says that mobility-driven demand for connectivity will likely be an important revenue stream for expanded 5G coverage, and the revenue from connected vehicles in major road corridors could potentially yield ROI within just 3-4 years.

Autonomous vehicles will improve road safety and be especially viable on closed campuses in the near future. Smart traffic control with real-time management through connected traffic lights will alleviate traffic congestion. Extending route-mapping technology to transport fleets will improve efficiency and provide real-time updates to commuters on transit times and/or delays. Connecting public places like stadiums with public transport systems will enable them to anticipate higher demand during events.

Energy and utilities

The energy industry currently faces the shift to renewable power, uncertainty over fuel prices, outdated infrastructure, declining revenues, and regulation and policy restrictions. Next-gen technology can help tackle these challenges, helping build a digitalized smart grid using AI, machine learning, and data analytics, and connected with 5G. Intelligence gathered from IoT devices and other technologies gives utility providers more control over distribution, battery energy storage, and renewable energy generation. This enables building smart factories, improved agility, improved CX, lower operating costs, decentralized business models, and high ROI.

Healthcare

Private 5G is set to revolutionize healthcare, helping ensure more efficient patient care, implement monitoring to enable preventative practices, and reduce escalating treatment costs. It will also mean improved healthcare practices, safer storage of patient data, and broadening access even to those in remote or distant areas.

The high speeds, reliable connectivity, low latency, and real-time data streaming that private 5G networks provide enable limitless IoT applications, also known as the Internet of Medical Things (IoMT). Teleconsultation is already being adopted by many hospitals and clinics – a trend escalated by the pandemic to enable patients to access quality medical care from the safety of their homes. As IoT-enabled automation and private 5G networks become more pervasive, healthcare professionals will be able to leverage these technologies to provide e-health applications and personalized treatment options.

Financial services

Today, the success of financial services such as banks, finance, and insurance (BFSI) companies is hinged, among others, on two important factors: security and customer experience. Private 5G helps fulfill these two requirements by providing ultra-high reliability, higher data capacity, and low latency. The adoption of private 5G and more widespread use of IoT systems and devices will help boost security and CX while driving ROI. It supports disruption from fintech firms, enables a host of advanced mobile transactions, and facilitates service providers to create custom financial solutions to meet an array of business requirements.

Entertainment and media

5G technology will change the face of entertainment and media. According to this report, the global media industry is expected to gain $765bn in cumulative revenues from the new applications and services that 5G enables. Smartphones and consumer devices increasingly support the richer and more advanced audio, video, and multimedia experiences that are facilitated by 5G’s low latency and high bandwidth. The next step is new media experiences for residential and enterprise applications. This will mean collaborative and shared live entertainment, AR/VR, interactive and cloud gaming, immersive events such as sports, personalized content, immersive advertising, and much more.

Manufacturing

Manufacturing units that run business-critical activities require infrastructure and applications that demand high reliability, low latency, and uninterrupted connectivity without a wired network. Enterprise or private 5G enables the application of robotics, AI, automation, Industrial IoT, and augmented reality to improve efficiency, lower costs, transform production processes, and facilitate new business models for manufacturing companies. It can help minimize downtime and delays in production, enable streamlined supply chain management, facilitate improved quality checks, boost staff safety, and empower more informed decision-making in real-time using BI analytics.

Education

The pandemic has already accelerated a massive digital revolution in learning, moving teaching to virtual classrooms. And while e-learning is off to a good start, 5G will help bridge the divide caused by the limitations inherent to legacy networks such as lagging speeds and the lack of more immersive experiences. Improved connectivity, ultrafast speeds, and the integration of IoT and robotics will enable educators to create enriched educational experiences that not only match classroom experiences but also surpass them.

Agriculture

5G is expected to revolutionize the agricultural sector, enabling centralized and real-time control over agricultural practices. Many have been turning to newer technologies in recent years to monitor and improve farming practices. Drones, sensors, and cameras are already in use to monitor soil hydration, rainfall, soil nutrients, weeds, temperature, and so on. Connecting these devices to a 5G network and leveraging next-gen features will enable more precision and efficiency in the systems. Smart farming applications enable farmers to segment their fields and treat different sections based on their unique needs using machine-to-machine (M2M) communications and AI. Farmers can use geolocation services to track livestock in real-time, monitor food intake, keep a check on animal health, and more.

How Alepo can help

Cross-industry partnerships will be the most lucrative path to success for 5G service providers, and to attract more partners, they will need to enable innovative 5G use cases. This means providing a robust platform that supports easy onboarding of partners and customers, omnichannel support, and in-built monetization systems. As early movers in enabling 5G, we’ve already begun facilitating operators to stay ahead of the global trend of small and medium businesses turning to operators for their private 5G networks. Our end-to-end solutions enable operators to forge cross-industry partnerships, meet regulatory needs, and develop fail-proof cybersecurity strategies. Learn more about our 5GC solutions.