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Oct 08 2019

Pivot to Enterprise and Industry to Break Open the Treasure Chest in 5G era

Imagine a world where advancements in technology are faster than we can keep up with; faster than we could implement this advanced staged technology. This is a world that many Communication Services Providers (CSPs) find themselves in. Today, it is their great challenge; how to survive and thrive in a world where the very foundations of that world – technology – is ever changing, striding forwards, leaving us all behind? The answer lies in the ability to identify where revenue growth will be.

It’s important to first understand the scale of change. Each generational change of telecommunications technology has resulted in incremental growth of data consumption. Our Nokia Bell Lab study estimates that there will be an increase of up to 82 times the current size in wireless data demand by 2025 and an increase of up to 15 times the current rates in global IP traffic[1]. Many of us already know this, so what’s new? Well, operators have not been able to fully monetize growth and have seen their revenues decline because they are not ready for the 5G era – their networks, operations, and business models are not ready for battle. Furthermore, CSPs have been looking in the wrong place for revenue growth, so where to look for this hidden treasure?

Nokia Bell estimates that enterprise/industrial market opportunity will expand from ~$500B today to $2Trillion by 2028 if CSPs become full Digital Service Providers (DSP)[2]. Enterprise and industry are the treasure chests for CSPs. With the emergence of cloud-based digital services and a decline in connectivity service revenues, a move to new digital services that specifically targets enterprises will not only enable CSPs to keep up with technological advancements but enable them to thrive.

However, this transformational shift is not so seamless. CSPs must lower the barriers to entry into the enterprise and industrial worlds. The paradigm of change is based on three pillars i.e. technology, services lifecycle and ROI driven by the business lifecycle. To properly pivot to enterprises and industrial companies, CSPs must become Digital Service Providers.

Moreover, if we look at the pivot to enterprise and industry in the context of 5G it is also plain to see that a ‘one-sized-fits-all’ policy will not work. Not if CSPs want to deliver the extraordinary. The qualitative differentiation arises from network design of 5G use cases with specific performance characteristics that must be addressed from the outset by the design process. Such use cases could include automated factories, connected cars, connected healthcare, camera surveillance and many more as an overlay to eMBB & FWA. The performance demands of these use cases will vary tremendously in terms of the capacity, coverage, throughput and latency required, making the design process highly complex.

The sheer complexity of 5G network planning and design cannot be resolved by conventional techniques. Nokia has created ‘Digital Design’ to dynamically manage huge amounts of input data from the network and its surrounding environment. This involves adding machine learning and data analytics to make it possible to digitally model specific use cases as a basis for a new, more dynamic 5G network design process.  The benefits accrued are the robust network evolution plan, use case based scalable capacity, coverage, QoS performance of the network and most importantly the return on investment and accurate business outcome prediction.

But the story doesn’t end here. If you’d like to hear more about the potential for 5G to open up treasure chests, please join my webinar on 16th October.

Read our white paper: Reinvent Digital Services with Nokia’s digital design

Reference [1] &[2] https://www.bell-labs.com/var/articles/who-will-capture-new-value-5g-future-x-network-era/

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About Matthias Meyer

15+ years of management experience within Telco IT solution arena with strong analytical thinking & engineering background.

Tweet us at @nokianetworks

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