It’s less of an iteration on previous technologies and more of a total digital transformation in how we connect to virtual and physical worlds. The number of connected devices will grow exponentially, linking previously static infrastructure – cars, clothes, parking meters – to a smart network that constantly generates and processes vast amounts of data.

In line with this, the 5G services market is expected to grow at an astronomical rate, from just over $41bn in 2020 . Research by MIT indicates that between 2020 and 2035, .

These changes will impact consumers, businesses and industries in ways we are yet to fully understand, but early signs already point to a number of expected benefits.

Supercharged media consumption

Media and entertainment companies stand to benefit greatly. With movie theaters closed and ongoing restrictions on large-scale events, consumers seeking an escape from the pressures of lockdown are flocking to streaming services such as Netflix and Multichoice’s Showmax. The higher speeds – enabling ultra-HD or 4K streaming quality – and lower costs associated with 5G could completely transform consumer habits in terms of home entertainment.

Technologies such as virtual reality (VR) and augmented reality (AR) could finally see the mass adoption they’ve been promising for nearly a decade. With international travel still severely restricted in many countries, consumers could ‘visit’ game reserves and tourist destinations via virtual experiences and enjoy a sense of escapism without the need to hop on a flight, thereby improving the much-depleted tourism market.

A win for remote work

Office workers, newly liberated from the confines of corporate headquarters, could be among the first to experience the power of 5G in their day-to-day work.

Expect to see major advances in the quality of video calling and innovation as collaboration platforms – already experiencing record growth due to the shift to remote work – introduce richer employee experiences made possible by the higher speeds.

The connected everything

With lower latency, increased reliability and increased spectrum available, 5G is expected to turbocharge the rollout of the Internet of Things (IoT). Forbes estimates the number of IoT devices will increase from seven billion in 2018 to 22 billion by 2025.

In which industries will 5G-enabled IoT make an impact? The short answer is: likely all of them.

• Mass digitization of public services could support the building of smart cities where key infrastructure is connected to a central network, enabling predictive maintenance and improved traffic management, for example.
• In healthcare, junior doctors could be trained for surgery via AR or VR delivered via 5G, and telemedicine – which has become even more vital in light of the pandemic – is set to experience what some analysts describe as a tsunami of growth.
• In manufacturing, 5G could achieve cost optimizations by enabling virtual control of machines and telemetry or information exchange between large numbers of connected devices in real-time.

These benefits won’t be realized simply through the deployment of 5G, however. Organisations will need robust digital transformation strategies supported by systems such as enterprise resource planning platforms that can process, store and analyse vast amounts of data from huge numbers of disparate sources.

Integrated business applications that can harness the power of exponential technologies such as artificial intelligence will help organisations find hidden value in their data, and help bring to light new opportunities for commercialization and process improvements through things like predictive maintenance.

The arrival of 5G is likely to transform the way we live, work and play. Organisations that can think big and put in place the technology tools and processes needed to harness the power of advanced connectivity could position themselves for an era of near-limitless innovation and growth.

This article first appeared on

The post 5G is Coming. Here’s What it Could Mean for South Africa appeared first on 51·çÁ÷Africa News Center.

The introduction of telco operator-enabled IoT networks and the upcoming rollout of 5G is also creating a new battleground for connecting a sensor-based world. The potential benefits to telco operators for 5G rollout are immense: total revenue from 5G is expected to reach $1.6-trillion by 2026, while the revenue opportunity for telco operators to use 5G to address industry digitisation is as much as $582-billion.

However, to unlock this, telco operators will need to reimagine their business models: 72% of 5G growth potential requires operating model transformation.

The key to success in the experience economy is building intelligent enterprise capabilities that connects experiences with operations, and operations with data to guide business decisions. An intelligent enterprise collects insights from customers, employees, products and brands at every touchpoint, and uses powerful technologies to sense opportunities, risks and trends before turning this intelligence into action.

In the year ahead, telco operators need to transform their business models by changing focus from products to customer-centric experiences. It’s vital that they start closing the gap between insights and actions by listening and adapting to customer needs while operating on a single intelligent experience platform. Once telco operators can anticipate and deliver on the needs of customers, they can start transforming their generic sell-to and sell-through business models into an ecosystem approach that can build success in markets other than traditional connectivity.

In light of this, telco operators need to look at four key priority areas for 2020 and beyond, namely:

Putting the customer first

Customers that have become accustomed to the digital experience provided by Internet companies are expecting the same of their telco service providers. By 2025, successful telcos will gain and retain customers by providing proactive digital customer experiences across all touch points, delivering tailored solutions and services to consumers and enterprises.

To get there, telcos need to enable automation and high levels of personalisation to improve customer experiences at the right cost, using tools like chatbots and machine learning technologies. By developing a deep understanding of customer behaviour, telcos can transform their businesses by expanding in adjacent industries and markets while adopting new business models.

Fostering operational excellence

Over the past decade, average revenue growth among telco operators has been slowing down as over-the-top (OTT) providers and other disruptors put pressure on traditional revenue streams. Telcos are now faced with huge capital expenditure from the rollout of 5G infrastructure at a time when operational expenses are increasing. In the past, telcos have faced high maintenance costs and low return on investment along the asset lifecycle, mostly due to broken processes and inconsistent or inaccurate data. The 5G requirement will only add further pressure.

The introduction of digital twin technology brings greater visibility of contingent workers, equipment, network sites, spare parts and cables to equipment providers, maintenance contractors and tower owners. This opens the door to an operating model that enables greater sharing and collaboration. And with new technologies for managing connected assets, telcos can streamline infrastructure operations by creating a digital representation of the network sites in the cloud, giving them granular data over the financial and operating performance of individual towers and other assets.

Diversifying revenue streams

Telco operators are under no illusion that basic communication services – ‘connectivity only’ – is the future of their business success. Telcos need to elevate their position in the value chain by going beyond just a ‘dumb pipe’ business model. By 2025, the most successful telcos will transform into digital life providers, data brokers, digital transformation enablers and cloud service providers.

To get there, telco operators need to optimise new revenue streams targeting consumers and enterprises. Mergers and acquisitions will extend their capabilities and unlock new markets or geographies, but it’s important that telcos have a digital core that can seamlessly integrate new service offerings without affecting the customer experience. An ecosystem model that enables telcos to adopt, enable and retain digital partners and their innovations will open up telcos’ own strengths and capabilities to the ecosystem to create a powerful collaborative approach to market.

Enabling intelligent connectivity

Faced with steep infrastructure costs and uncertainty over how to maximise return on investment into 5G technology, telcos need to carefully consider the business case for 5G. In these early days, the key is to operate 5G networks as efficiently as possible while maximising revenue potential from new features made possible by this next-generation technology. A combination of the intelligent enterprise model and the telco industry’s intelligent connectivity provides the clearest path to new business models and revenue streams for 5G.

By 2025, telcos could become leading enablers of the intelligent enterprise for other industries, with networks becoming smarter, more virtual and closer to zero-latency. Telcos will use new technologies to anticipate congestion, predict failures and even self-heal. The key to achieving this is to start optimising infrastructure management now. Predictive models that minimise equipment downtime and improve network performance can be enabled by developing a single, holistic view of real-time, repeatable and pre-emptive insights.

We may also see new models of co-innovation around 5G, bringing various role-players into a collaborative coalition that accelerates innovation around edge computing, smart cities and other value drivers enabled by 5G.

The post Four Strategic Priorities for African Telco Operators in 2020 appeared first on 51·çÁ÷Africa News Center.