Follow the Money ― Early 5G Monetization Opportunities
5G will result in a fundamental change in the service delivery models of carriers. However, this change will come in different phases. The current indication from major carriers across Asia/Pacific sets expectation for delays in full-scale 5G rollouts, and hence, none of the really distinctive 5G capabilities like ultra-low latency, massive connection density, and networks slicing will be available everywhere during the first couple of years of 5G new radio (5G NR). In this Market Perspective we examine the opportunities for communication service providers (CSPs) provided by first wave of 5G, while the industry and telcos gear up for a full-scale rollout."If we follow the 5G money trail, we will see that the communication service providers will not be able to get all their 5G money investments back from consumers. Consumers may be willing to pay a small premium over the existing services, but it will not be enough for carriers to earn a return on their 5G investments. But the good news for the carriers is that the enterprise customers are willing to pay a premium for key 5G characteristics," says Nikhil Batra, senior research manager, Telecoms, IDC Asia/Pacific.
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