New 5G services for business and enterprise customers might boost connectivity revenues for mobile operators in a variety of use cases, assuming 5G becomes a favored connectivity choice, compared to other available choices, including 4G and unlicensed networks. Consider connected vehicles.
By 2022, Ford expects most of its cars to come with built in C-V2X technology, an LTE-based (4G) platform. By definition, that is a rival platform to 5G. Also, connected car platforms include
DSRC-based V2V technology, which might be used more broadly by GM and Volkswagen.
Other use cases, including industrial internet of things, might also use a variety of platforms other than 5G, including 4G platforms, wide area low-power platforms or Wi-Fi.
So 5G represents potential enterprise connectivity revenue upside for mobile service providers, but only if 5G proves more attractive than other connectivity options, some based on 4G, others supplied by rival platforms using unlicensed spectrum.
Optimists also see incremental upside from mobile operator participation in internet of things or other smart device use cases where the mobile operator owns a solution or can partner with a solution provider. But “network access” is not the only new battlefield.
Custom networks based on network slicing and edge computing also will be new potential value drivers for enterprise buyers, and, as always, enterprise solution architects will have other supplier choices. In some markets, mobile operators might have new wholesale opportunities as some enterprises seek to create private 5G networks.
In fact, 5G access, in and of itself, might prove to be less a driver than the other features (customized networks, edge computing). And in some countries, private 5G networks will not create a new wholesale opportunity for mobile service providers, as enterprises will be able to use new spectrum specifically allowing them to create private 5G networks on their own.
The point is that 5G will have to prove its value for enterprise customers who will have other choices, including mobile operator 4G solutions.
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