The arrival of 5G is set to bring with it disruption to the current service provider landscape, with new players and services emerging, according to Strategy Analytics.Amid the 5G evolution, opportunities will emerge for service providers, both traditional and new.
Service providers will compete “to offer new ‘as-a-service’ business models and network slicing for dynamic on-demand, service-specific network provisioning to address the needs of particular use cases and services”.
Strategy states that 5G is envisioned to deliver “a wide range of new services, use cases and business models, both ones that have been depicted today and new ones still not imagined”.
“5G not only enhances current services and enables new ones – it opens doors for new disruptive market leaders,” Susan Welsh de Grimaldo, Strategy director wireless operator strategies and author of the report, commented.
“With 5G, who offers service and how services are packaged will shift, as 5G will enable not only new services and new business models, but also new types of service providers, such as digital virtual network operators (DVNOs) – an evolution of the mobile virtual network operator (MVNO).
“DVNOs will be able to leverage ‘network slicing’ from 5G network operators’ platforms to spin up new network slices – using self-provisioning – to offer specific services for targeted verticals and/or consumers, bundling access and performance requirements with managed services for each specific segment of users.”
Guang Yang, Strategy senior analyst wireless operator strategies, noted that the development of 5G will occur alongside further 4G /4.5G and Wi-Fi developments and investments.
“As 5G standards and technologies evolve, 4G LTE and Wi-Fi will continue to be the active network powerhouses well into the next decade – and both offer a rich set of enhancements that will drive service evolution alongside 5G development and that will contribute to the 5G evolution,” Yang commented.