Nearly two-thirds of businesses will seek help from a mobile operator when adopting 5G services, offering operators a lucrative new revenue stream that increases the rate of investment in next-generation infrastructure. While 5G networks will allow operators to deliver enhanced communications to consumers and reduce operating costs, the real value would be found in business services. Unlike previous generations of mobile connectivity, the ultra-fast speeds, higher capacity and ultra-low latency of 5G mean that mission-critical applications can run on cellular technology for the first time. At a time when traditional revenue sources such as voice are declining, it is essential that operators manage to capture part of this emerging market.
Enterprise 5G
Nokia research suggests that 61% of organizations in the UK and US will work with an operator to set the direction of their strategy. Awareness of 5G is high, with two-thirds of companies familiar with the 5G concept and one-third having already adopted next-generation services. Like other studies of this nature, manufacturing, utilities and transportation are the most enthusiastic industries, and the public sector is also excited about the potential of 5G applications. Smart video, AR and VR training, and remote controlled machines are considered important 5G applications. "We conducted this survey to demystify the 5G hype and get to the heart of what will drive enterprises to adopt 5G for their WAN and LAN applications," said Josh Aroner, Nokia Service Provider. "It also reveals how communications service providers can increase their revenue by providing the services that businesses are willing to pay for. "We anticipate that the requirements stemming from the COVID-19 pandemic will accelerate longer-term 5G plans by focusing on the digitization, automation and analytics, which lend themselves perfectly to physical distance, remote monitoring and work. Now that we have a better understanding of what is happening on the network, there is a clear call to action for CSPs to invest in vertical expertise and lead their customers with more 5G training. The results contrast with a separate study by Omida that found that mobile operators were the primary partner in only a fifth of all commercial 5G contracts signed to date. Analysts have urged operators to work with industrial partners to ensure they are on top of the planning stages of major projects.