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5G digital value incubation hinges on shifting operating and monetization paradigm

by Martina Kurth  |  October 2, 2018  |  2 Comments

The proliferation of new technologies such as cloud PaaS/SaaS, NFV and SDN datacenter are triggering major CSP operational and monetization infrastructure investments, such as OSS orchestration, hybrid service modelling and real-time charging. Thus far, initiatives reside in discrete areas and transformation occurs incrementally. The arrival of 5G infrastructure will trigger more fundamental overhaul of CSPs´ OSS, BSS, CRM in the long haul, taking the current business and operational evolution to a new level.

The characteristics of 5G technology and services will require fundamental shift toward a new operating and monetization paradigm, that enables CSPs to participate in unprecedented digital value creation chains.

  • Services will have different characteristics in terms of latency, bandwidth and service quality, based on billable events, transactions or usage based interactions
  • 5G services will be event-based, or centered on discrete interactions or real-time transactions, resulting in manifold billable events cascading in digital partner ecosystems.
  • Services will become real-time, AI data driven, often on-demand driven- customers have to be able to order them, consume and deactivate them seamlessly through any touchpoint;
  • 5G-driven offerings will become more complex entailing multi-faceted product/service bundles across digital value chains/ecosystems

5G will not happen without a drastic operating and monetization shift, allowing CSPs to facilitate complex use cases such as augmented reality, drone video, location-based network slicing and IoT. As 5G enables devices to consume data at even higher rates and in short order, speed becomes the value play. Monetization will have to support a broader range of service plans, and ones that embrace real-time networks functions that can throttle usage, provide preferential bandwidth, and charge accordingly based on consumption.

pic 5g blog

Without rejuvenation of their telecom operations and business system stacks, well in advance of their actual launch, CSPs will fail to capitalize on their backend infrastructure investments. 5G-driven services and business models will require architectural modernization which need to be supported by CSP BSS/OSS ecosystems:

  • Build a monetization infrastructure that allows monetization based on events, transactions and value of interactions. Monetization parameters include time, priority or other measurable units.
  • Endeavor strategic investments in congruent real-time, AI-data driven, autonomous operations comprising automated customer engagement system architectures for 5G business models and use cases
  • Digital autonomous intelligent operations (which can be enabled by predictive analytics, machine learning or AI) will be pivotal to drive dynamic customer interactions comprising real-time quotation, pricing and configuration for 5G services.
  • Don´t miss out implications of dynamically changing partner ecosystem will become a key element of complex multi-component 5G offerings (such as Connected Cars, Smart Home and vertical solutions) as an integral part of workforce, culture, operational processes and product/service development in wider digital value chain ecosystems.

For more insights on new architectural and functional requirements, that 5G technology poses on CSPs´ operational, business, customer and partner management environments, please read The Impact of 5G on Monetization and Operationalization Infrastructures of CSPs

 

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Martina Kurth
Research Director
9 years at Gartner
19 years IT Industry

Martina Kurth is a Research Director within CSP Technology advising CSPs, CTOs and CIOs worldwide on prevailing transformation and sourcing initiatives in the area of OSS/BSS and SDP. Her research also encompasses telco-specific CPQ, catalog, and order management systems and processes spanning CSPs' entire operational lead-to-install process. Read Full Bio


Thoughts on 5G digital value incubation hinges on shifting operating and monetization paradigm


  1. Magda says:

    Having read this I thought it was rather enlightening. I appreciate
    you finding the time and effort too put this content together.

    I once again find myself spending way too
    much time both reading and posting comments. But so what, itt was still
    worthwhile!

    • Martina Kurth says:

      Thanks for your message. Yes I find it worthwhile to summarize the essence of some key topics, like 5G operationalization and monetization, for our readers. Most Executives don´t have time to read through whole reports…I am glad you like it!



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