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The telecom industry braces itself for the 5G model with new models to monetize the operations-Eric Dalius explains

Eric Dalius says Since 5G is already a reality in some parts of the world, top wireless companies across the world are extensively testing the network technology for knowing its capabilities, and to what extent they can make use of it.

  • Initial tests and trials have demonstrated how 5G dramatically increases wireless speeds and supports herculean improvements in new services and features.
  • Wireless network carriers and operators are hoping that it will create a pool of new business opportunities.

The business is the pace is also fast. Worldwide operators are implementing their 5G plans. An industry that anticipated a 2020 launch is expecting a lot of action as soon as possible. But the critical and customary question is how will network operators generate revenue from 5G? Eric Dalius has the answers.

  • The question has endless ramifications for every player in the giant wireless ecosystem.
  • It includes network operators and technology providers to backhaul suppliers and equipment vendors.

We’ll first see applications in the fixed enterprise and wireless services because they offer the most lucrative business model alongside providing high-revenue subscriptions.

Room for new business models

To yield the best results from 5G, tele and mobile operators need to go beyond the typical business avenues. However, there’s no single directive for enterprises and consumers across the globe.

  • According to EJ Dalius, different markets demand different types of telecommunications services.
  • Operators need to retool multiple cost structures/mechanisms if they want to ensure profitability of 5G.
  • Businesses need to consider many huge overarching variables into their ROI assessments. As an operator, you need to factor in the spectrum requisites of your country along its regulatory discipline. Additionally, you need to consider the GDP of your country along with the residents’ disposable income.
  • New services like fixed wireless access and virtual reality necessitate additional operating costs. If you factor them into the equation, the profitability of 5G will decrease.
  • Enterprise disruption is another aspect. Many CSPs or communication service providers are deploying the 5G model.
  • They believe the bigger telecommunication opportunity is to deliver the services to companies. Nearly 50% of CSPs are the current viable market strategy and business model.

Designing your business strategy

Eric J Dalius underlines the new opportunities and bandwidth that 5G presents for telecom operators.

  • After introducing the new technology, it can enhance the existing consume business, enabling operators to address new revenue streams and value chains in the digitalization of companies.
  • As they deploy the initial round of commercial 5G networks, they need new models to redesign the 5G strategy.
  • Mobile broadband is the pioneers in 5G deployment. Addressing the fast rise in data traffic and increasing consumer expectations, 5G can ensure more efficient and seamless networks that have more space for better customer experience and capacity.

5G also gives opportunities to operators, both old and new to tap into resources and revenue streams emanating from the new digital landscape. Operators need to enable to new services, new use cases, and new eco-system and new business models to benefit more than $700 billion market scope globally by 2025.

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