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Is 5G making^money yet?
Or, are operators, enterprises
and the ecosystem really
ready to monetize 5G?
By Sean Kinney
Introduction close to recouping the cost of network as the clock continues to tick?
5G monetization…one of those deployments. Well, why not? That’s a
things that’s simultaneously a pointed simple question with a not-so-simple How do operators think 5G
necessity for operators and a bit nebu- answer. Part of it has to do with tech- monetization will happen?
lous in terms of the when and how it nology, certainly, but the bigger issue Verizon detailed five vectors of service
will happen. Another wrinkle appears is perhaps around readiness: It’s hard revenue growth in March 2022
when you compare the bill of goods for an operator to sell advanced 5G In March last year, Verizon execu-
sold when the marketing machines services into an enterprise if that en- tives convened for an investor pre-
switched into gear circa 2018 with the terprise isn’t organizationally ready to sentation that took stock of the assets
commercial reality of 2023. That to actually use it. At the same time, if an the company had assembled, particu-
say, using a cellular network to deliver operator can’t demonstrate immediate larly its nationwide C-Band spectrum
home internet is a far cry from robot- business value, what’s the appetite for portfolio, and looked ahead to how
ic surgery; customers switching to 5G a business to invest in a loosely defined these assets would be positioned to
because they upgraded a device isn’t future state? It’s not so much a chicken drive revenue growth. CEO Hans Vest-
exactly the same as seeking out a high- and egg problem as it is a problem of ber laid out how Verizon’s network-
priced, high-powered performance tier having chickens but not having a use as-a-service strategy would support
optimized for mobile gaming. for eggs or, conversely, needing a spe- growth across 5G-backed mobility, na-
While fixed wireless access and cy- cific type of egg but not having access tionwide broadband (both wired and
clical device and plan upgrades are to the right type of chicken. That’s a fixed wireless access), enterprise-fac-
indeed creating revenue attributable messy metaphor but 5G monetization, ing solutions like private networks
to 5G, and that whole 5G for enter- like managing a chicken coop, is a and mobile edge computing (MEC)
prise digital transformation theme is messy business. Time will surely tell, infrastructure, the “value market,”
showing signs of life, no one is getting but who’s most prepared to grit it out and “network monetization.”
the broad “future innovations” band 5G device landscape, Ericsson tallied Juniper Research projects
which includes Extended Reality, dig- announced products and found that 5G revenue will hit $625
ital twins and “industrial grade private 61% were phones, 30% were CPEs, 6% billion by 2027
networks.” were PCs or tables, and just 3% were eSIM and device diversification driving
As operators around the world are “application-specific devices.” revenue growth: Analysis
learning, the more durable 5G mone- That said, the report authors wrote, Mobile operators are forecast to gen-
tization strategies involving advanced “There are already clear signs of a erate $625 billion from 5G services
enterprise-facing solutions aren’t yet coming uptake of 5G services in sev- globally by 2027, up from $310 billion
making a meaningful impact on bal- eral industries…Industrial ruggedized in 2023, according to recent analysis
ance sheets. Ericsson called out “grow- 5G handsets have been launched… by Juniper Research.
ing 5G opportunities in enterprise and Mobile devices such as autonomous The report, published in February,
public sector applications across the mobile robots (AMRs), drones and XR predicts that this growth of more than
world,” but also cautioned that, “It is devices are already being connected by 100% over the next four years will be
as yet early days for 5G…” modules to a gateway. This is expected chiefly driven by the migration of mo-
As it relates to private 5G networks to accelerate in the coming years. As bile subscriptions to 5G networks, and
as an enabler of enterprise digital innovation in 5G…picks up the pace, the increasing inclusion of eSIMs in de-
transformation, one problem identified not only on the consumer side but also vices such as laptops and Wi-Fi hotspots.
in these pages and elsewhere is a lack for enterprises, new application-specif- Juniper Research also forecasts that
of vertically-focused devices with the ic devices will increase in number, pos- 80% of global operator-billed service
necessary capabilities. Examining the sibly also in areas not yet considered.” revenue will be attributable to 5G
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