As the world patiently awaits the arrival of next-generation connected services, such as autonomous agriculture, advanced healthcare, and manufacturing made possible by 5G, Communications Service Providers (CSPs) are facing a state of limbo. The progression of 5G infrastructure is evident, but the full spectrum of its applications, particularly in the enterprise sector, remain largely untouched, and tangible returns on investment (ROI) are few and far between.
This is further complicated by the fact that the pathway to 5G monetisation is less clear than it was for 4G given 5G’s vast potential extending far beyond mere connectivity. With the challenges many CSPs face in meeting modern customer expectations with contemporary telephony propositions, this context raises a critical question for CSPs: how will you adapt to deliver more complex, 5G-enabled services successfully?
This situation highlights the urgent need for CSPs to evolve and align their internal capabilities to manage and effectively navigate the forthcoming complexity of this emerging era.
The Golden Era of Transformation
As we navigate this transitional phase where 5G infrastructure is still being finalised and enterprise applications are just beginning to emerge, it’s crucial for CSPs to critically evaluate and enhance their internal systems. This preparatory period is not a delay but an invaluable window of opportunity for CSPs to recalibrate their commercial strategies, ensuring they are fully equipped to capitalise on the potential of 5G.
At Hansen, we perceive this period as a pivotal ‘golden era’, offering CSPs the chance to overhaul their commercial operations – a necessity for effectively managing the upcoming complexities associated with 5G applications.
To effectively harness the potential of 5G and expedite the adoption of new, profitable business models, CSPs must focus on strengthening their systems and processes to achieve a state of commercial agility. This involves enhancing their capabilities not only to create innovative market offerings but also to sell and deliver them efficiently. These offerings, a blend of core connectivity and partner products and services, are instrumental to unlocking the full value of 5G investments.
THE CHALLENGES & SOLUTIONS
CSPs that do not achieve commercial agility as next-generation 5G services mature risk falling behind in the competitive landscape. They will struggle to adapt to market shifts and escalating customer expectations. This lack of agility will manifest in challenges around creating, selling, and efficiently delivering complex offerings, leading to increased operational costs and delayed market entry. Service providers must evolve their strategies to stay relevant and responsive in the rapidly advancing world of 5G.
1. The need to iterate based on market feedback
While 5G capabilities are truly groundbreaking, the pathway to monetisation is unclear. Success will likely be found in working with an increased number of partners, selling their next-generation products and services, which will run on your 5G network.
However, as CSPs navigate the unknown, they must be able to adjust their trajectory based on market feedback. From scaling their successes, to refining what didn’t quite hit the mark and quickly retiring what didn’t land at all. CSPs must be able to do this rapidly and cost effectively.
Betting heavily on a few ventures is a risky strategy.
2. Meeting Increasing Customer expectations
Customer expectations have been greatly influenced by over-the-top (OTT) service providers who have moved the goalposts for other businesses including CSPs. Now, the ability to shop at their leisure via their channel of choice, while having it delivered seamlessly and efficiently is no longer seen as competitive advantage but as table stakes. CSPs must be able to deliver a selling experience which matches the dynamic and innovative nature of their 5G offerings.
At the most basic level this means providing a consistent and reliable experience across all their sales channels, simply telling customers that an offer is “only available in-store,” is no longer acceptable.
Rationally, CSPs must embrace intelligent, AI-driven, selling solutions which help to surface relevant and attractive products and services to maximise upsell and cross sell opportunities. Simply expecting customers to sift through an endless list of new products and services is not a strategy for success.
3. Becoming data led to enable efficient experimentation
To launch and manage propositions compiled of these more complex products and services, CSPs will need the ability to efficiently experiment. It is not just about getting products to market quickly; it is a paradigm shift into becoming a data and insights led organisation to inform all future commercial decision making.
As mentioned, with so many unknowns still surrounding future 5G applications, the need to try different partner products and services in various specifications is imperative. With a data-driven, commercially agile operation, CSPs will be able to experiment efficiently – this means being able to launch and iterate market propositions quickly and cost effectively, overall resulting in a less risky commercial operation.
To enable this, CSPs must have access to instantaneous commercial data and insights to inform all decision making. When it comes to understanding the success of a 5G proposition and informing the next-best course of action, commercial leaders and the wider team cannot be bottlenecked by lack of a BI system license or unable to access a report which is sitting on analysts’ desktop – they must be able to access, interpret and act upon commercial data and insight without interference.
Interested in more on how CSPs can become commercially agile to monetise 5G products and solutions to both enterprise and consumers? Read Hansen’s take on the requirements for CSPs to become commercially agile including a modern, future-proof BSS solution that includes cloud-native architecture, is industry standard compliant, and is Catalog-driven – or driven from a single source of truth. Check out the Hansen PoV paper ‘Commercial Agility: How to Successfully Monetise 5G – The Missing Piece’’ for a deep dive into the challenges and requirements on the commercially agile road to 5G success.
Bruce Williams
Product Marketing Manager
The Hansen Suite for Communications, Technology & Media
