Informal talks are believed to be ongoing between the US telco and a number of online giants

US telco Verizon is looking to partner with either Apple or Google, in a bid to deliver its 5G TV services, according to reports in the press. A source familiar with the situation told Bloomberg that Verizon planned to rollout 5G TV services in Los Angeles and Sacramento later this year.  

While informal talks are believed to be ongoing, Verizon will want to tie up any deal quickly as it looks to move forward with its spate of 5G rollouts in 2018. As 5G rollout approaches in 2018 in the US, 2019 in parts of Asia an 2020 in Europe, analysts are predicting a rise in the number of partnerships signed between telcos and OTT providers.

“Verizon wanting to partner with an existing digital media player, like Apple or Google, to deliver its 5G TV service really isn’t a surprise. In fact, developing partner ecosystems to deliver new services is something we are going to see a lot more of in the coming months, especially in sectors such as telecoms," said Angus Ward, CEO, Digital Platform Solutions at BearingPoint.

“5G is currently a big focus for many CSPs– especially as usage and revenues from traditional services wane. 5G enables a vast number of use cases for both consumer and business customers, suggesting a glimmer of revenue-orientated hope. And yet, it is an exorbitant undertaking for which success is very much dependant on the ability to generate return on investment. The ability to monetize 5G will rely heavily on the ability of CSP to develop and facilitate effectively an ecosystem of partner.

“According to our recent survey, CSPs have high expectations when it comes to the value that partner ecosystems will deliver to their businesses – 50% anticipate a 16%+ revenue bump in just two years. The issue is, despite expectations, CSPs are struggling with execution, frustrated primarily by a series of technological challenges.

“To ensure that 5G use cases are fruitful, CSPs must adopt new underlying digital business platform technologies that are designed to facilitate partner ecosystem-based innovation and more sophisticated offers. Only then will CSP efforts to monetize their 5G investments be successful.,” he concluded.