How can telcos maximise returns from their 5G investments?

With the 5G spectrum auction completed, India will join the growing league of 80 countries (as of June 2022) that are providing ultra-high-speed and low-latency 5G services.

5G is not just about faster speeds. It brings several new and exciting use cases that will not only add value to our day-to-day lives but is expected to also make a significant contribution to the nation’s economy. According to the Telecom Regulatory Authority of India (TRAI), 5G is likely to bring about a massive economic impact of $1 trillion by 2035.

Indian telcos are already making plans to upgrade their networks to bring 5G services to their subscribers. For instance, India’s largest service provider, Reliance Jio Infocomm Limited, recently announced that it would invest $25 billion in setting up 5G networks across the country.

For enterprises performing advanced operations and customers using smart devices, the perks of high-speed, low-latency data connectivity is clear. However, the business case for telcos is undefined: Will they recoup their initial investments? Will consumers be willing to pay more for 5G?

5G-empowered digital transformation

While 5G-enabled digital transformation will allow telcos to support a new generation of use cases, modern networks that can constantly adapt to the ever-changing network demands of an ‘always-on’ digital economy are essential.

This is especially so as futuristic technologies like the internet of things (IoT), artificial intelligence (AI), and machine learning (ML) are becoming commonplace and putting further pressure on networks, while remote work and an ever-increasing demand for over-the-top (OTT) content are contributing to a surge of activity at the edge of the network.

Telcos with foresight are also jumping on the limitless opportunities that 5G can offer enterprises keen on digital transformation. It is not uncommon to see telcos encouraging enterprises to tap onto their 5G networks, leveraging services such as real-time network slicing and the ability to run cloud applications on-demand. Enterprise customers would not need to worry about how to adopt 5G or build their own 5G infrastructure – and can use 5G as-a-service in real-time. In a digital-first future, such all-encompassing, open and cloud-ready solutions could soon be the cornerstone of every enterprise’s operations.

Automating 5G networks

However, such transformations cannot be easily accomplished through the traditional method of scaling networks – where customers wait for services to be provisioned or changed. In its place, telcos are looking to adopt adaptable, intelligent, and self-optimising 5G network solutions, which are designed to be open, scalable, and automated.

From intelligent automation that enables end-to-end network slicing, to high-performing transport architecture that is easy to build, scale and service, there are several essential building blocks that would help telcos scale up bandwidth and increase 5G performance.

Several global telcos are realising this and are transforming their networks to address new network demands. For instance, Telefonica is using a software-defined network to support the roll out of 5G services. On the other hand, DISH Networks, is building the first cloud-native, open radio access network (O-RAN)-based virtualised 5G network in the U.S.A.

Building a partner ecosystem for 5G monetisation

5G will offer new use cases in several different industries, like agriculture, education, health, transport and media and entertainment. Instead of creating vertical 5G applications themselves, developing strong cross-industry partnerships is how telcos will win a share of the value generated from new use cases.

There are already several examples of telcos forming partnerships with companies not typically associated with them. For instance, Bosch would be using Airtel’s 5G network solutions at its facility in Bengaluru in India. Partnerships like these are only going to increase as the 5G ecosystem grows.

Outside of India, telecom tower company American Tower and Ciena have embarked on a proof of concept in Europe to advance open standards for private 5G, which will help to further extend 5G’s use cases by configuring networks in a way that can be easily implemented across many industries and environments in the future – from factories to university campuses to hospitals.

Looking ahead

As Indian telcos move towards the launch of commercial 5G services, the demand for high-speed connectivity is not waning. Translating customer needs into network innovations and, in turn, into revenue-generating services would be instrumental in the creation of new 5G experiences.