How CSPs can benefit from 5G

The majority of enterprises believe that 5G networks will have a big impact, and CSPs should capitalize on that belief to make 5G work for them.

Monetizing 5G

CSPs have an opportunity to satisfy enterprise demand and effectively monetize their 5G services through the provision of tailored, customer-specific solutions that are co-created and jointly delivered by service providers, their suppliers, and ecosystem partners.

However, the main barrier to enterprise 5G adoption is a lack of understanding when it comes to complex services. According to a specialist network vendor, interviewed the Omdia research, “CSPs must own the view that enterprises and partners have of them. They should address their knowledge gap.” CSPs should seek to monetize the 5G offerings in the following ways:

• Highlight differentiators – CSPs must highlight what differentiators they can bring to the enterprise in the context of their 5G offerings. 5G network design is only one component of enterprise digitization. CSPs need to offer additional value to become preferred partners, such as security, commercial innovation and technical architecture.
• Leverage partnerships – To take full advantage of the opportunity 5G presents, instead of just adopting a monolithic approach focused only on their own services and capabilities, CSPs should prepare to address enterprise demand in conjunction with an ecosystem of partners. CSPs need to learn that, while their core product (5G connectivity) might be essential for the delivery of outcomes, businesses are seeking a complete set of services, applications, and IT systems in order to fully realize the benefits of 5G. Many of these requirements can be addressed by alternative providers, systems integrators, and application developers.

Hidden business 5G opportunities for CSPs

The following trends were also highlighted in the Omdia research, outlining some little-known 5G business opportunities for CSPs in the enterprise space.

The CSP-led model

While CSP activities have grown in the market, their efforts are sometimes outpaced by smaller players such as private networks specialists, which were already active in the market. There is now an opportunity to leverage this market, by partnering with other players in the market through partner ecosystem management.

Enterprise DIY

Enterprise DIY recently represented 20% of all deals, and while there will always be a number of enterprises that are willing to take full ownership and responsibility for their 5G solution, it is clear that this is not their first priority as most enterprises don’t have the resources or the knowledge to do everything in house and will therefore look for help. This presents a great opportunity for CSPs to step in and fill the knowledge gap.

CSPs as secondary suppliers

This model certainly represents a significant opportunity for CSPs, because being involved even as a secondary player means they are still part of the project, and they can drive upsell of enterprise services such as security or integration.

Alternative service providers

This is the fastest-growing 5G provider model. These providers are often local or specialist players whose main business is delivering private networks to local enterprises and whose strength resides in quickly adapting and shifting resources to target new opportunities. They were fast to identify and react to spectrum developments and opportunities. Overall, its strategy adapts to what the customer wants – it has a deeper vertical understanding and it does not need to balance diverse company priorities like the larger players do. Once again, CSPs can benefit by leveraging partnerships with alternative service providers.

Conclusion:

5G presents significant opportunities for both enterprises and CSPs. The potential for 5G to improve productivity, customer experiences, and facilitate product enhancements is substantial. CSPs can offer not only a private network or network slice for B2B2X monetization opportunities, but also the means to help enterprises expand their service offerings. Leveraging partnerships, highlighting differentiators, and addressing knowledge gaps will be important for CSPs to fully benefit from 5G and grow revenue in the enterprise space.