Asia is one of the pioneers when it comes to the deployment of 5G. In recent years, the network has undergone several developments and various use cases have been enabled through this.
The region has also taken the lead in adopting various possibilities of 5G technology and implementing strategies to monetize it as technology continues to evolve. The rapid advancement of 5G technology involves not only enhanced internet connectivity but also the transformation of various sectors, including telecommunications, manufacturing, healthcare, and entertainment.
Deploying New 5G Services
Research predicts that in 2024 the telecoms industry will undergo a significant transformation, as communications service providers (CSPs) are set to reap benefits from their investments in 5G technology, primarily driven by the emergence of cloud-native 5G technology, which will empower CSPs to rapidly implement new services and meet the varied demands of enterprises.
These technological improvements will enable the discovery of new sources of income, especially from business applications, while providing a reduced total cost of ownership (TCO) and unparalleled speed in entering the market.
The cloud-native cores will enable telecoms providers to explore new enterprise use cases, ranging from IoT applications to mission-critical operations. By utilizing a cloud-native strategy, service providers can decrease the time and expenses associated with deployment, enabling them to introduce cutting-edge services to the market more quickly and begin generating income at an earlier stage.
Additionally, private 5G networks will be an essential factor in driving 5G monetization. It is expected to become a major source of revenue as businesses aim to improve their IT and operational technology. These networks offer high-capacity connections with the convenience of WiFi installation, along with exceptional security, reliability, and customization options. Enterprises will increasingly seek out telcos that can offer flexible, cloud-native solutions as a substitute for the traditional systems that are still bound by physical hardware.
Telecom Review Asia Exclusive Feature: Finding the Balance and Unlocking the Potential of Data Monetization
5G Use Cases for Monetization
South Korea was among the first to introduce 5G connectivity and continues to lead in recent advancements.
Telcos in Korea have made significant investments in 5G use cases, particularly augmented and virtual reality (AR/VR) applications, to promote the adoption of 5G technology. For instance, SK Telecom's "Jump AR" software allows users to virtually experience e-sports stadiums and other locations, enabling interaction with various applications.
Multiple cities in South Korea have also been converted into smart cities by integrating IoT. 5G connectivity has been established to efficiently oversee urban infrastructure, just like the smart city project in Bucheon, which incorporates 5G technology with IoT devices to effectively control traffic, save energy usage, and improve public safety. Telecommunication companies can generate additional sources of income by providing these advanced services, which go beyond the conventional data plans.
Across Asia, various companies are capitalizing on 5G monetization use cases. VOX Solutions achieved Tier 1 vendor status in SMS monetization, while Telstra expanded its 5G monetization capabilities with MATRIXX.
Moreover, Peng Song, President of Huawei, emphasized the diverse opportunities for monetization presented by 5G's extraordinary and multi-dimensional experience attributes, which add both commercial and social value. Nokia is powering KDDI's 5G networks with standalone core and monetization solutions, including cloud-native converged charging, signaling, policy control, and mediation.
Additionally, CSG acquired DGIT Systems in 2021 to support the ease of delivery and monetization of digital ecosystems. More recently, Irdeto showcased the 'Irdeto Experience' at BroadcastAsia 2024, supporting super aggregation of global and local apps, unified search and discovery, and offering editorial and personalized recommendations, thus, enhancing monetization opportunities.
Also Read: Seizing 5G Enterprise Monetization Opportunities
Effectively Monetizing 5G Networks
Several factors should be taken into account to effectively monetize 5G networks, including the right timing and addressing challenges with synchronization. As telecom transitions from 5G deployment to optimization and monetization, entities must prioritize the rapid and effective identification and correction of timing and synchronization issues. This is especially crucial as customer adoption of 5G increases.
Accurate positional information is crucial for many applications, as it is closely linked to perfect synchronization, such as in the manufacturing industries where machines need to adhere to precise parts in order to operate effectively. Seamless synchronization is necessary for certain features to function as intended, in order to fully utilize the 5G network's advanced capabilities.
Asia has undoubtedly played a significant role in propelling the advancement of 5G, and the strategies implemented in the region to generate revenue offer valuable insights into the future of connectivity. Asian countries are actively exploring various opportunities to leverage 5G technology through old and new use cases.
5G monetization in Asia is expected to progress as there are still untapped possibilities left to be discovered. Through proactive adaptation and ongoing innovation, Asia is positioned to maintain its leading position in connectivity, driving advancements in 5G monetization and the eventual deployment of the 6G network.
Telecom Review Asia Exclusive Interview: Zoran Vasiljev: Centili is Raising the Bar as a Digital Monetization Company
