February 16, 2022

5G Networks Offer CSPs New Monetization Opportunities

CSPs already have the infrastructure, expertise and technology to capitalize on 5G.

In 3G and 4G, CSPs built their networks on the promise that the revenues would come. They did, but not for the CSPs. Instead, device makers, social media companies and content providers profited from the services that these networks enabled, and CSPs were left with massive infrastructure bills.

In 5G, CSPs are once again signing checks to build multibillion-dollar networks, but now they are also trying to tap into 5G revenues for themselves. History has shown that CSPs don’t do well when they enter new sectors, but 5G offers them a unique opportunity to build off their existing strengths for greater monetization.

CSP Strengths
CSPs are trusted providers with the proven BSS abilities to apportion revenue and bill accurately and fairly. This expertise is their greatest asset, and it places them at the center of a new digital value chain.

Their position in this new value chain takes advantage of their investments and expertise as a natural next step in their evolution. Their networks are now directly adjacent to IT and the cloud and are integral to the performance of IoT and other emerging business models. Furthermore, the unique ability of CSPs to handle events and services on a massive scale will put their networks and OSS capabilities in enormous demand to support billions of connected 5G devices.

While the previous generation of BSS was all about counting consumption, next-gen BSS/OSS will be about providing flexible billing for unique network services. These new services will support a diverse range of needs, such as short-term network slicing for off-peak backups to data lakes or ultra-low latency multicasts of CEO speeches to employees. Pricing for each will be different, and it will reflect the value that each service has to the customer or end user.

5G Opportunities
This decoupling of service value from network consumption is the critical enabler of effective 5G monetization for CSPs. It’s the reason why revenues from 5G networks are set to represent 77% of global CSP-billed revenues by 2026, according to Juniper Research. 5G services offer 600 billion dollars in opportunity, but seizing that opportunity requires CSPs to maximize their virtualized capabilities and IT strength to diversify, automate and monetize.

Click here to learn more about how Netcracker Digital BSS/OSS expands 5G monetization.

 

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