5G could sound like it’s the answer to every connectivity problem, but it’s past time to correct that misconception or adoption will likely remain slow. 5G is just one of the tools in the telecom toolbox.
To find new sources of revenue, instead of going for utility-style 5G scale, it may be better for telecoms to focus on identifying key points of attraction and customer needs for which telecom providers’ specific capabilities and experience can make a noticeable difference to customer experience. The connectivity solutions and services needed will vary from situation to situation, so what telecoms end up recommending may or may not include 5G—for many use cases, slower speeds and narrower bandwidths, or even wired connections, may prove far more effective.
Equally, for most operators today, according to the GSMA (PDF), the B2C sector accounts for an average of 70% of telecom revenues. And yet B2B is their main driver of growth. This points to a way ahead: start thinking about 5G as table stakes to maintain competitive parity, not as a big bet to improve profitability.
The key for a telecom operator to unlock more of the revenue growth potential of B2B is to shift from seeing itself as a connectivity provider into being a connectivity partner—an equal that organisations can turn to when they need to solve connectivity problems or innovate around issues where connectivity could provide a solution, not just a utility.
To work out the areas in which to target their incremental investments, telecom companies will need to leverage expertise from multiple disciplines and data from multiple sources to develop a robust and realistic planning algorithm. This process should involve stakeholders from product development, marketing and finance, as well as strategy and engineering, to help predict what’s likely to be needed by different customer segments.
Doing so should help telecom operators join the dots between customer demand and network utilisation, competitor presence and product life cycles—all helping to identify the prime opportunities to deliver improved customer experiences. By including a strong focus on cost to serve—including likely ongoing network costs for high-demand applications, and the reputational cost of failing to deliver on the promise—telecom companies will also be able to have more informed discussions of pricing plans. This in turn could help point to ways to improve cost management through an increased focus on delivery via an ecosystem of vendors and partners, including by leveraging 5G O-RAN.
The result? Improved services and pricing means telecoms will start to be seen as more valuable by their customers—leading to closer, more lasting and more valuable relationships.