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On the Road to 5G Revenue, We Ask: Are We There Yet?
Thu, 12 Sep 2024 18:55:07 -0000
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The return on the massive Communication Service Provider (CSP) investment in 5G telecommunication services– by some counts1 US$600 billion by 2025 – is not yet guaranteed. While 5G services could generate over $2.2 trillion in revenue2 by 2030, the reality is that most CSPs are still figuring out how best to market the new services, coverage improvements, broader bandwidths, and cost reductions that 5G Standalone brings. At the intersection of the billions invested and the potential billions to be generated, one thing is clear: to generate new revenue streams, CSPs will need to fundamentally rethink the way they price, package, and monetize services. CSPs typically attempt to market 5G services with the incumbent 4G mindset which focuses on the “bigger pipe’s” faster speeds. Instead, with 5G, the focus should be on the innovative services that the larger 5G “pipe” enables — services ranging from enabling autonomous vehicles to seamless delivery of AI in almost any operation.
Legacy infrastructure further complicates the transition to 5G. Many CSPs rely on legacy billing and charging systems that were designed to support traditional pricing for minutes, messages and megabytes. Monetizing 5G services will require a radically different value-based pricing strategy.
Finally, the transformation to efficient 5G operations requires CSPs to adopt cloud-native, digital business architectures that can integrate with the increasingly complicated value chains that will emerge.
To help CSPs accelerate the return on their 5G investments, Dell Technologies and MATRIXX Software have partnered together to deliver a 5G solution featuring pre-integrated and tested hardware and software that includes Dell Telecom Infrastructure Blocks, Red Hat OpenShift Container Platform, and MATRIXX next-generation digital monetization software.
Leading the charge to 5G revenue
MATRIXX Software accelerates 5G monetization with its converged charging and digital monetization platform. MATRIXX's charging solution is designed for cloud-native 5G networks to deliver the agility, simplicity, and ultra-low latencies that will drive future pricing models. For example, MATRIXX’s converged charging system supports real-time data so that pricing models can change dynamically, based on network congestion, location, media type, or other service information. The MATRIXX solution is designed for non-technical users through a “click not code” model that makes it simple to add pricing information to new services and to price those charges – usage or non-usage charges – in value terms or on outcomes and not just on network resources consumed. And, because it’s a unified solution, there’s no customization needed and updates are automatically pushed out whether the solution is deployed in your data center, at the edge, or in the cloud.
If you’ve been watching Dell’s movements in the telco space for the last couple of years, you’ll know that Dell Technologies has invested heavily in new technologies that accelerate 5G deployments. For example, we’ve created Infrastructure Blocks that feature pre-integrated hardware and software building blocks for 5G networks that can be deployed on day one. We also built the industry’s most advanced testing and validation center for open 5G solutions, the Open Telecommunications Ecosystem Lab (OTEL).
Building blocks that build profitable services
With MATRIXX Software certified as a workload on Dell Telecom Infrastructure Blocks for Red Hat, CSPs can easily deploy and scale 5G infrastructure for a variety of scenarios, from deploying edge solutions to creating entirely new digital brands. Adding MATRIXX to the 5G equation adds up to a lot more than simplified billing for 5G services. MATRIXX software helps reduce the time-to-market for new services and plans, increase the expedience of prepaid account recharges and data plan upgrades, and even increase customer satisfaction.
Infrastructure Blocks featuring MATRIXX Software allow CSPs to almost instantly begin charging for 5G services the moment they’re in production. That’s the kind of pricing agility that CSPs need to stay competitive in a market that will be defined by disruptive thinking and real-time responses to new opportunities. If you want to start making that future happen today, talk to us at Dell and accelerate your road to 5G revenues.
Sources:
1. McKinsey Article: “Navigating the three horizons of 5G business building” Feb 22, 2023 By Shamik Bandyopadhyay, Pallav Jain, Jeremy Leing, and Stefan Prisacaru
2. LightReading article: “GSMA: 5G to add $2.2 trillion to the global economy” Mar 5, 2020 By GSMA