Telcos ‘missing 15% revenue boost’ from 5G for business

Telcos ‘missing out on 15% revenue boost’ from 5G for business

13 February 2020 | Alan Burkitt-Gray

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Business users will drive the emerging market for 5G, creating an uplift in revenues of as much as 15%, according to new research.

Digital platform specialist BearingPoint//Beyond says that telcos are failing to develop business-to-business (B2B) services that could create new revenues and drive the success of 5G.

Telcos “want to just sell connectivity and standardised ‘connectivity plus infrastructure’ products, while businesses want to buy more sophisticated, complete solutions that better fit their needs and require the integration of multiple technologies from multiple players”, said Angus Ward (pictured), CEO of UK-based BearingPoint//Beyond.

Telcos “must learn the art of ecosystem orchestration if they want to monetise 5G at scale”, he said. “Businesses don’t want to build these solutions themselves.”

The company’s study, based on interviews in late 2019 with 250 technology decision makers from 100 enterprises and 150 small and medium businesses, showed that three-quarters of them believe 5G will be important to their business. They cited speed, reliability and more advanced solutions as key reasons.

BearingPoint//Beyond pointed out that, on average across Europe, Asia and North America, telcos expect a 15% increase in current revenues from B2B 5G services – something that is significant in an industry facing annual revenue growth under 2%.

Ward said that “the vast majority” of businesses would happily work with telcos, but “they’re not waiting around – businesses are already partnering with other companies to solve their business problems. They must move quickly.”

The research was carried out by UK-based Coleman Parkes.