The increased performance of 5G networks is going to come at an increased cost, according to consulting firm, Oliver Wyman.
Considering the decline in voice revenues, and profits going down, operators’ revenues are stable at best. Hence, in order to build 5G networks and capitalise on the potential of this technology, operators would have to resort to new strategies.
Oliver Wyman outlines three courses of action that could help fix the problem. Rafa Asensio, partner and global head of the communications, media and technology practice at Oliver Wyman, says: “If operators get these points right, the rewards could be great.”
Alliances need to be established among rival operators to set up new networks. This would be economical for the operators. Moreover, seeking regulatory approvals would be easier as well as residents wouldn’t be affected much due to construction of too many towers.
Cooperation with OTT providers
Since OTT players stand to benefit from mobile data it makes sense for operators to partner with them to deliver new networks. The success of the internet players is hugely due to the mobile networks, so it is high time they partake in the pain and not just the gain.
Additional revenue streams
Network operators need to figure out additional revenue streams to ensure that 5G yields top-line growth. They need to monetise the extra capabilities beyond connectivity in smarter ways. Unlimited data bundles without additional differentiation will result in operators having to resort to lower prices to retain customers. This is something which has to be avoided to maintain profitability.