5G will redefine the products and services of telecom operators

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There is a seemingly endless list of 5G use cases that service providers have been trying to come up with for years. 5G represents a significant network evolution, and the upgrade from 4G to 5G will create a far greater contrast than what was experienced when LTE networks were rolled out. Over the next one to two years, standalone 5G will be rolled out, allowing service providers to start seeing a return on their investments in 5G infrastructure and spectrum. This will be a redefining year for the telecom industry.

At the 2021 Consumer Electronics Show (CES), Verizon CEO and Chairman Hans Vestberg delivered a keynote presentation that showcased how service providers can leverage the unique capabilities of 5G to enable innovation, transform telecommunications, and advance society. Some of the highlights included how Verizon will work with partners Skyward and UPS to build new smart cities using 5G networks as the core backbone for robotics and drone management use cases. Additionally, Verizon outlined how 5G can support digital inclusion and education through its innovative learning initiatives.

Through a range of partnerships in sports, education, smart cities and entertainment, including companies such as the NFL, the Metropolitan Museum of Modern Art and the Smithsonian Institution, leading organizations are working with Verizon to use 5G to transform the way they operate. Whether leveraging 5G’s low latency and edge computing capabilities to address use cases such as remote surgery, self-driving cars or even cloud gaming, organizations of all types are confident in the service improvements that 5G can provide. The telecommunications industry must now capitalize on these opportunities and use 5G as a platform to attract new customers with new types of services and ultimately reinvent the telecommunications business model.

The power of 5G networks

In order to combine hope with reality and deliver the services that standalone 5G can enable, a change in mindset will be critical. The terrible problem is that we view 5G as just faster 4G. With 4G, service providers have invested in building networks but have not seen the best return on their investment. OTTs use these networks to deliver their services and content, which brings them a lot of revenue, while service providers get the connectivity revenue. With 5G service providers can change the game. They will need to go beyond connectivity and play a central role in delivering the true value of 5G, and the key way to achieve this is to harness the power of 5G networks.

Introduction to Network Embedded Services

With 5G and its network slicing capabilities, we will see different network characteristics (such as speed and latency) applied to different services for each use. These services can be described as network embedded services. Service providers will have more options to provide services based on specific dynamic network requirements. Adopting a model similar to a hyper-scaler, allowing them to provide flexible packages that can be implemented in a way that has never been seen before in the telecommunications industry.

5G cloud gaming is a prime example of a 5G use case that is often cited as one for which customers will have to pay a premium. In online gaming, milliseconds of latency can be the difference between winning or losing. With network slicing, gamers can be provided with premium services with reliable latency and bandwidth to stay ahead of the curve.

There are many examples of mission-critical applications where the best 5G network experience is needed, from self-driving cars all the way to remote surgery. To ensure the right 5G network quality of service (QoS), service providers need to apply the right rules on a slice-by-slice basis in the 5G policy control function. The next step is to monetize this experience by converting high-value services into revenue by applying charging rules in the 5G charging system.

As 5G network features become part of the use cases and services offered by service providers, it is critical that 5G networks are tightly integrated with IT and business, which is particularly important for network embedded services due to their diversity and dynamic nature. A bridge between business, IT and 5G networks will need to be built to ensure the management, delivery and monetization of all the new 5G use cases that will be launched.

5G Value Platform

The 5G Value Platform is a great example of how to bridge the gap between business and IT. It brings together the service catalog with charging and policy systems, linking new digital experiences back to the various layers of the very complex 5G network. Owning the foundation for 5G management and monetization also opens up new opportunities to update adjacent solutions - such as digital customer experience management on the business side and network optimization on the network side.

2021 will be the year of telecom and 5G definition. As service providers realize the ambitions of 5G, they will have the opportunity to support a wide range of new customers. By redefining themselves, telecom service providers will enter entirely new areas and even launch non-telecom services for the first time. 5G is a critical inflection point for telecom companies to innovate and adapt to growing demand and rapid technological innovation. 5G is designed to bring economic benefits to this new market built around service models and agile businesses.