As much as 18 percent of the total value of “digital business transformation” and 47 percent of 5G-enabled business-to-business value can be addressed by service providers, according to Ericsson.
Service providers could take different roles ranging from connectivity to B2B service delivery and end-user application creation, Ericsson argues.
That represents revenue of as much as $700 billion by 2030. It is possible that revenues service providers can earn might become meaningful, reaching possibly $50 billion about 2022 or 2023, A.D. Little forecasts.
The total value of the global 5G-enabled market for service providers across 10 industries is projected to be USD 700 billion in 2030, beyond mobile broadband, Ericsson argues.
One obvious observation is that any strategy beyond the horizontal “access” connection will require choosing from a few verticals, as no service provider, no matter how big, can create sizeable vertical competencies in more than a few industries. The cost to acquire or build domain competence is simply too high to allow realistic pursuit of industry platforms across the board.
As always, the logical role is the horizontal connectivity role, shown below in light blue. The larger enablement role represents both larger revenue upside but higher cost and risk profiles.
No comments:
Post a Comment