Emma Okonji
A comprehensive guide for operators on how to maximise revenue opportunities in today’s era of Internet of Things (IoT) and 5G advanced technology, has been released by Ericsson.
The guide, which is real-time automation, is the largest of the nine use-case clusters identified in Ericsson’s 5G industry digitalisation report followed by enhanced video services.
According to the guide, 73 per cent of respondents in the 5G industry impact report said they target first-mover advantages as their most strategic objective
The industries’ focus on 5G has shifted from viewing it as a disruptive technology to now embracing it as a central part of their strategy. In the latest 5G-IoT report, Ericsson laid out a roadmap for operators to unlock the revenue potential of 5G-enabled industry digitalisation.
In ‘The guide to capturing the 5G industry digitalisation business potential’ – a sequel to the ‘5G Business Potential’ report – Ericsson delved deeper into how operators can potentially grow revenues up to 36 percent by addressing 10 key sectors.
The previous 5G Business Potential report found that operators can add a revenue of $204 billion to $619 billion, which is about 12 to 36 per cent to their forecast service revenues of $1.7 trillion in 2026. They can do this by targeting the digital transformation of other industries, such as automotive and manufacturing, using 5G-IoT technology.
In the report, Ericsson examined more than 400 industry digitalisation use cases across 10 industries such as energy and utilities; manufacturing; public safety; healthcare; public transport; media and entertainment; automotive; financial services; retail and agriculture. Of the 400 use cases, over 200 are where 5G is expected to play a vital role. These were grouped into clusters to boost revenue opportunities and overcome deployment challenges.
Through extensive operator engagements and a carefully chosen analytical framework, Ericsson created a comprehensive guide for operators to address a range of challenges. The report also highlights how use cases can be evolved to reach the full 5G-enabled industry digitalization business potential. The report also looked at various operator initiatives and shared some of the lessons learned so far.
According to Ericsson, digitalisation revenues for ICT players between 2016 and 2026 are set to grow by 13.6 per cent annually, while current operator service revenue growth is forecast at 1.5 per cent. As 5G becomes increasingly vital to industries, there is a rise in the opportunity for new 5G-enabled revenues for operators. Of the total 5G-enabled value in 2026, up to 47 per cent is addressable by operators. Through the evolution of use cases and clusters, operators can already begin to maximise the possibilities of 5G-IoT and industry digitalisation to capture their full business potential.
Head of 5G Commercialisation at Ericsson, Thomas Noren, said: “Our case studies have shown that operators employ strategic and operational activities to address challenges facing the success of their offerings. Even though they are not yet 5G offerings, these activities – such as go-to-market channels and trial and experimentation – will be equally important, if not more, when evolved towards 5G.â€
