5G

Forecast for operator service revenues slim compared to 5G-enabled opportunities
Wojciech Bajda, Head of Industry and Society Unit for Region Middle East
Wojciech Bajda, Head of Industry and Society Unit for Region Middle East

Share

Operators can benefit from an additional  34 per cent revenue from 5G-enabled industry digitalisation market opportunities by 2026, according to findings of Ericsson's latest report. The report is titled “The 5G business potential - Industry digitalisation and the untapped opportunities for operators and it analyses the 5G business opportunity that comes from industrial digitalisation, focusing on eight key global industries. In a media roundtable on 1st May at The Address Marina, Ericsson MENA discussed findings of the report.

The report highlights that the  current average forecast for operator service revenues is expected to increase by 1.5 percent annually from 2016 to 2026 globally. While this offers a steady revenue stream, it is slim when compared to 5G-enabled revenue growth opportunities in industry digitalisation. While operators may still profit from focusing on one of the steps in the value chain, they could achieve much larger growth if they embrace every step. For telecom operators who address industry digitalisation, Ericsson foresees revenue potential of $3.1 billion by 2026 in UAE.

The report shows that manufacturing and energy/utilities sectors represent the biggest opportunity for revenues created or enhanced by 5G. To leverage the power of 5G technologies, operators need to rethink their role and what value to deliver, and what business models to use. Using 5G to solve  the key challenges in digitalisation for industries (such  as manufacturing and automotive for example), operators  can become more than network developers, addressing additional revenue streams by becoming service enablers  or even service creators. 

In 2026, there will be a $582 billion revenue opportunity for telecom operators addressing industry digitalisation with 5G technology; however, of this $582billion, operators' addressable market  as network developer just makes up $193billion, and by becoming service enablers, they can reap $315 billion more. To reap $74 billion more, operators need to create new service models. 

Editor's Choice

Deception technologies, AI and Robo Hunters to  displace legacy cybersecurity solutions
IoT is rapidly expanding the attack surface of the digital enterprise and exposing it to enhanced risk levels not seen before. Deception technologies, artificial intelligence, Robo-hunters, are solutions for tomorrow's enterprise, Mechelle Buys Du Plessis, MD – UAE, Dimension Data.
The robots are coming: Impact of AI on executive search
As the technology industry’s elite struggle to agree on the potential impact of AI and a raft of people queuing up to advise on the potential disruption it will cause, this article by John Curtis-Oliver, Partner at Boyden studies the potential impact on the executive hiring and the executive search industry.
#MWC2018: Spotlight shines on 5G, IoT and AR
Hard to predict what will ‘turn around the fate’ of telecom operators, but there is potential for those who can play the role of enabling platform for new digital services and players, as well as for new features and capabilities across traditional industries, says Luis Cirne, partner, communications, media and technology (CMT) practice at Oliver Wyman

Most popular

Don't Miss a Story

You may also like

LinkedIn reveals the biggest reasons behind job switches in the region
As employers and offers get more competitive, top talent is more eager to jump on new opportunities.
MCIT Saudi Arabia signs MoU with Huawei to boost ICT skills development
From 2018 to 2020, 1,500 Saudis will undergo training from Huawei in skills related to ICT across the board. Joint developments to Huawei’s existing CSIC facility will focus on the development and utilisation of AI and IoT technologies in enabling the Kingdom’s entrepreneurs.
STC collaborates with ConsenSys to leverage blockchain for the Kingdom
The Saudi incumbent is working on developing innovative solutions for the government sector using blockchain technologies and aims to lead in offering blockchain application in Saudi market.
TRA UAE develops the roadmap of its 2018 business and initiatives
H.E. Al Mansoori delivered a general speech addressing six topics including international developments, TRA’s role in coming phases, in addition to issues such as the 5G, Artificial Intelligence, Internet of Things, and others.