Nokia claims telecom companies are not yet ready to make a profit from 5G

23. 02. 2022 Wednesday / By: Robert Denes / Industrial / Exact time: BST / Print this page

A ccording to a recent analysis by Nokia, telecom companies are not very prepared to profit from 5G. The company has studied 100 CSPs worldwide and discovered that the majority do not have adequate BSS systems to generate adequate revenue for 5G.

Given that Nokia has a fundamental interest in convincing telecom service providers to purchase more 5G equipment, it is forgivable to skip this headline statement. However, a close examination of the seller’s survey results shows that despite some cleverly worded questions, there is a problem here.

Only 11% of CSPs have the BSS capability required for 5G-compliant business models, including revenue generation tools. Similarly, 98 percent of respondents said they will need to change the BSS in the coming years to introduce modern revenue generation techniques. According to Nokia, this shows that service providers are recognizing the importance of 5G-compliant revenue generation systems and the need to invest in this sector. However, it is arguable that only 2% of telecom companies are adequately prepared to reap the benefits of 5G.

Meanwhile, 70% of CSPs are considering putting revenue generation systems in the public cloud to better respond to and meet the needs of their consumers. These estimates are higher; after all, most telecommunications, for example, are considering real-time pricing. However, the wording of the poll may also play a role here. On the issue of cloud revenue generation, respondents actually responded to the phrase “deploying BSS through the public cloud is a viable alternative for us,” rather than commenting on the merits of the technology.

However, it is worrying that many believe that cloud-based BSS is not a viable option for them, especially in Europe, where only 57% of respondents are considering cloud revenue systems.

Without sophisticated monetization mechanisms, telecom operators would have a hard time reaping all the financial rewards 5G has been promising for years. Providing new services, such as services that require network slicing, as soon as possible and on a large scale would be critical for telecom companies looking to achieve a faster return on these expensive 5G network costs. And they will need equipment for that.

Hamdy Farid, Nokia’s Vice President of Business Applications, said: “Unleashing 5G revenue and moving beyond the traditional data design model requires a significant shift between CSPs towards adaptable revenue systems that include cloud-based, scalable and flexible infrastructure and open APIs. are used for easy integration and installation; and I think this survey sheds light on the work still to be done.”


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