The advent of 5G networks has caused a great debate within the global telecommunications sector. The new generation of wireless networks is viewed as a savior by some, set to transform the industry back into a growth engine; to others, it looks to be another huge capital expenditure with an uncertain use case. For 5G to reach its full potential of becoming a significant revenue source, carriers need to adopt an ‘outside in’ approach to innovation.
25 October 2022 • 2 min read
It is no longer the engineering that presents the biggest barrier to realizing the full potential of 5G technology, but the commercialization of the new wireless system in a mature market beset by pricing pressure.
For 5G to reach its full potential of becoming a significant revenue source, carriers need to adopt an ‘outside in’ approach to innovation, rather than the traditional ‘inside out’. This has not been the industry’s strong point until now, as carriers are pipeline businesses that like to control as much of the value chain as possible. They trade well but partner poorly. An example being telecoms companies failing to collaborate around mobile payments, which has allowed technology companies to step in and snap up revenue streams.
As telcos consider new operating models and capabilities, they will need to rapidly adapt to a world of smart partnering, multi-party revenue shares, joint go-to-market approaches, partner technology enablement and systems integration.
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