Growing disconnect between CSPs and businesses over 5G

The revolutionary capabilities of 5G have been sung from the rooftops for many years now, but the technology’s impact will only be felt if CSPs can harness it correctly.

 

A new study from BearingPoint//Beyond has shown that business owners are in fact far more optimistic about the future impact of 5G than CSPs. 

 

When it comes to small-to-medium businesses (SMBs), 75% suggest that 5G will have a significant impact on their business, whether that be through increased speed, reliability, or the availability of novel advanced solutions.

 

But for CSPs the scope is far more conservative. Just a third of European CSPs believe their role will change to encompass more than just connectivity, and only 10% believe they will become 5G ‘ecosystem organisers’. 

 

“Businesses want to buy 5G, CSPs want to sell 5G. The problem is that CSPs want to just sell connectivity and standardized ‘connectivity plus infrastructure’ products, while businesses want to buy more sophisticated, complete solutions that better fit their needs and require the integration of multiple technologies from multiple players,” said Angus Ward, CEO of BearingPoint//Beyond.

 

Being stuck in a 4G mindset in a 5G world could be the bane of some CSPs in the coming decade, with a rising tide of independent enterprises ready and willing to construct 5G solutions and offer them independently.

 

The question then becomes: can CSPs take control of this burgeoning ecosystem of 5G use-cases by working with enterprises, or will they find themselves forced into competition with them? 

 

“CSPs must quickly master the art of ecosystem orchestration if they want to monetize 5G at scale. If they don’t, technology providers and vertical solution providers will,” said Ward.

 

As operators rush to upgrade their 5G networks, it is clear that they also need to upgrade their business model too if they are to gain the maximum benefit from this exciting technology.