From Pipes to Profits: Agile Service Creation for 5G and IoT Monetization
The telecommunications landscape is at a pivotal moment. As 5G networks mature and IoT deployments accelerate, communications service providers (CSPs) have an unprecedented opportunity. It is time to move beyond traditional connectivity and unlock substantial new revenue streams through innovative, agile service creation.
The New Monetization Imperative
Simply providing connectivity is no longer enough. In today’s digital economy, the traditional telecom business model is rapidly becoming obsolete. CSPs must reimagine their role in the value chain to ensure business viability and seize this multi-trillion dollar opportunity presented by 5G through 2035. This opportunity is driven by increasing demand for faster internet speeds, improved connectivity and the development of new applications and use cases, such as virtual reality, augmented reality, autonomous vehicles and smart cities.
For CSPs, capturing this value requires more than just providing network infrastructure. The real potential lies in transforming CSPs from connectivity enablers into solution orchestrators that deliver tailored services across diverse industry verticals, such as logistics, healthcare, manufacturing and utilities.
Agile Service Creation: The Competitive Advantage
Agile methodologies are revolutionizing service delivery for CSPs. Companies embracing these principles are seeing project delivery speeds increase up to four times faster,[1] alongside substantial cost reductions. Embracing agile business practices is now a competitive requirement in the telecom industry.
The key to successful agile service creation lies in streamlined product lifecycle management and robust catalog capabilities. Forward-thinking CSPs are leveraging centralized product catalogs as their single source of truth for all product and service information. This empowers them to configure and launch new products in hours, not months, dramatically accelerating time-to-market.
[1] For examples see, BCG, Scaling Up Agile at Telcos or TM Forum, Case Study: Agility and Standards Deliver Faster Return on Investment.
Embracing the B2B2X Revolution
One of the most promising approaches for monetizing 5G and IoT investments is the B2B2X business model. This model is not just about expanding reach. It is about creating entirely new value propositions and revenue streams by embedding CSP services directly into other companies’ offerings to serve any number of end customers. It enables CSPs to extend their value chain and tap into new revenue streams by collaborating with enterprises across different industry sectors.
For example, a CSP could partner with a smart city platform provider to offer optimized connectivity for traffic management systems. It could also collaborate with a healthcare provider to enable remote patient monitoring solutions. Other use cases involve working with logistics companies to provide real-time asset tracking and management for supply chains. These are just some of the many possibilities for creating new revenue streams and expanding customer bases.
Network-as-a-Service (NaaS) and API-Driven Revenue Models
NaaS-based offerings are poised to unlock substantial new revenues for CSPs over the next five to ten years. Using standardized network APIs, CSPs can tap into entirely new market segments and create subscription-based services that expose network capabilities such as quality of service, e-commerce platform features, identity and access management (IAM), location intelligence and edge computing.
Agile service creation directly supports NaaS and API-driven models by enabling rapid development and deployment of new API-based services. With agile, CSPs can quickly iterate on offerings, respond to market demands and seamlessly integrate new network capabilities into their service catalog, accelerating time to market and revenue generation.
IoT: The Revenue Growth Engine
IoT is expected to account an increasing percentage of CSPs’ mobile services revenue by 2030. Leading operators have already developed comprehensive IoT platforms that provide connectivity, device management and data analytics services. These platforms enable businesses to deploy and scale IoT solutions more easily while creating new revenue opportunities through value-added services.
Agile service creation is crucial for monetizing IoT. It allows CSPs to quickly design, test and launch a diverse range of IoT services and applications. This agility is vital in a rapidly evolving IoT market. It ensures CSPs can quickly adapt to diverse, industry-specific needs and capitalize on emerging use cases with unparalleled speed and efficiency.
Network Slicing and Edge Computing Opportunities
5G network slicing enables CSPs to create virtual network segments tailored to specific customer needs — from dedicated streaming for live sports events to secure connections for public safety, logistics, telemedicine and smart manufacturing.
Edge computing complements 5G by enabling ultra-low-latency applications and localized data processing. Companies are invested in private 5G licenses to improve manufacturing operations, connecting vehicles, robots and tools in their smart factories.
Agile service creation empowers CSPs to swiftly define, provision and manage network slices and edge computing resources as distinct, fully monetizable services. This means rapid customization and deployment of specialized network solutions for diverse enterprises, transforming dynamic network capabilities into revenue-generating products with minimal lead time.
The Path Forward: CSPs Must Act Now
The convergence of 5G, IoT and agile service creation technologies presents a time-sensitive opportunity for telecom providers. Those who act decisively, implementing streamlined product lifecycle management, developing robust catalog capabilities and forging B2B2X partnerships, are the ones poised to capture significant new revenue streams.
The telecom industry stands at a crossroads. CSPs that continue with traditional connectivity-focused business models risk becoming antiquated, while those who transform into agile solution orchestrators will thrive in the digital economy. The technology foundations are in place. CSPs must develop viable business models on top of them to capitalize on this substantial market opportunity.
The critical differentiator for CSPs will be their speed and proficiency in deploying agile service creation capabilities. This is how they will fully capitalize on the burgeoning opportunities within the 5G and IoT landscape, transforming challenges into sustainable growth.