Shifts of value within the ecosystem are happening in virtually every industry touched by the internet and software. In the telecom industry, value has shifted from “access and transport” to “applications.” That is happening in the automobile industry as well, with a difference. In the communications business, access providers struggle to maintain relevance.
In the automobile industry, as in other industries, access providers have a chance to gain relevance.
In the automobile industry, shared of ecosystem revenue are shifting from “vehicle sales” to applications and services. More important, shares of profit are shifting even faster, away from vehicle sales and aftermarket, and towards mobility and apps.
If you want to know why 5G matters, a chance to earn new revenues, from new customers, using new applications, is among the key reasons.
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