5G is finally here. Most operators are well underway with rolling out 5G networks, and many are now setting their sights on 5G standalone–a new 5G core that will unleash a wealth of new use cases, from private networks and autonomous cars to ultra-low latency gaming. This is an exciting time for the telecoms industry, but there is a big elephant in the room: 5G monetisation. It’s still unclear how operators will reap a return on their costly 5G investments. While all eyes are on enterprise to benefit the most from 5G, the killer use case is not here yet. From a consumer perspective, the picture doesn’t look much better. 5G brings greater speeds and lower latency, but is that enough to engage and excite the average consumer?
Despite all the uncertainty, 5G steams ahead at full speed and consumers are now buying 5G handsets. According to the latest Ericsson Mobility Report, 615 million units were shipped in 2020, and there will be one billion 5G subscribers by the end of this year, increasing to 4.4 billion 5G subscriptions globally by 2027. This means that by 2027, almost half of all subscriptions will be 5G. These new 5G consumers will expect an outstanding network experience. They won’t settle for network faults or outages, and they certainly won’t expect lags in the network or buffering when streaming content. And if they don’t see a significant difference between 4G and 5G, they’ll be reluctant to pay for it.
Telcos are now facing a tough challenge. They have to deliver the promise of an exciting new generation of wireless technology, meet consumer expectations for an improved network experience, and all the while reap rewards from their network investment. Leveraging network intelligence will be a key part of their network monetisation strategy. So how do they use network data to deliver a network experience that both meets consumer demands and justifies their investment in 5G?
Shifting perceptions of network experience
Networks have evolved to become increasingly complex, catering to both the wealth of new services and increasing consumer demand for data. As telcos have navigated this new complexity, they’ve had to continually improve their network foundations to meet consumer and enterprise demands for connectivity services. We’ve seen telcos shift from reactive resolution to proactive, and the influx of AI-driven, automated solutions to ensure they offer the best network experience possible. With this shift, they’ve also had to evolve the way they measure consumer network experience.
The arrival of 5G has heightened this complexity and its associated challenges with a redefinition of network cores and radio access networks. What was once a relatively “simple” network experience from a customer point of view (e.g., Has my SMS sent and delivered? Am I able to make calls?) has now become an experience with myriad touchpoints, services, applications and use cases, all requiring the best of network quality and service. With so many new data points and insights to be gathered, leading telcos are using network intelligence to prioritise network improvements and deliver enhanced customer experiences.
From a 5G point of view, network intelligence is key to delivering superior performance for new applications and services—a critical part of telcos’ monetisation strategy. If we think about the potential of network slicing, the key to success will be telcos’ ability to leverage data intelligence to prioritise network traffic and ensure per-slice experience.They’ll not only be able to be better prepared to identify potential faults, outages or issues, but they’ll also create an enhanced value proposition when it comes to upselling or cross-selling services. A consumer or enterprise customer will only buy into the 5G dream if their quality of experience far surpasses their existing one. Understanding and improving the 5G network experience is impossible without network intelligence - and this data is at the heart of telcos’ monetisation strategy.
Avoiding the dumb pipe
As consumers turn more to content providers and OTT players, telcos may be perceived as a utility, rather than a differentiator on connectivity. While 5G promises to deliver impressive bandwidth and speed, there is a risk of consumers perceiving the network itself as a “dumb pipe”, delivering the same performance regardless of content type or provider. While it’s no lie that content providers and OTT players bring great value to consumers, the role of the telco shouldn’t be underestimated.
The COVID-19 pandemic showcased how critical reliable and robust connectivity is to our everyday lives and to the fabric of a society as a whole. By leveraging crowdsourced data - data gathered directly from consumer devices and measuring real-world network experience—to fuel their network intelligence strategy, telcos have the ability to resolve outages or network faults quickly and improve customer satisfaction. Enhancing end-customer experience has a significant - and positive - impact on a telcos’ bottom line. This is ever so important in a world where customer churn is increasing and subscriber loyalty is waning.
Finding gold in network intelligence
There’s no uniform definition for network intelligence, but at the minimum, telcos need a clear picture of the network performance metrics that impact consumer experience the most - from network speeds and availability to video playback and latency in gaming. Crowdsourced data can show telcos exactly how a consumer is experiencing a variety of services on their network - and this data should inform how they prioritise network improvements, network slicing, OTT partnerships, and other business decisions to maximise ROI for 5G investments. The data and the tools are out there to quantify the consumer network experience; now it’s up to telcos to mine for the gold and reap the reward of a robust network intelligence strategy.
