Research: CSPs catching up on 5G monetisation
February 17, 2022
Research from Nokia suggests that communication service providers (CSPs) are behind in having the right software solutions in place to help them monetise their 5G networks with new services and network management tools.
To generate returns beyond the traditional data plans of the 3G/4G era, CSPs and enterprises need to modernise their legacy monetisation systems, with new service offerings and application development ecosystems. New monetisation systems that enable operators to deliver new services, like slicing, faster and at scale are a critical enabler of helping CSPs and enterprises realise faster returns on their network investments.
But the Nokia-commissioned global survey of 100 CSPs around the world found that only 11 per cent of respondents have sufficient Business Support Systems (BSS) in place to meet the needs of 5G-enabled business models. BSS are a critical patchwork of business applications, which includes monetisation tools, that help CSPs manage their operations and supply chains through functions, such as billing and charging, and for delivering a solid customer experience.
An overwhelming number of survey respondents, at 98 per cent, indicated they would have to alter their BSS in the coming years in order to put proper, up-to-date monetisation tools in place.
The survey also found that nearly 70 per cent of CSPs are now considering deploying cloud-based monetisation solutions. In addition, two-thirds of respondents indicated they believe that real-time charging is essential for 5G monetisation, in part because of its ability to help CSPs respond quickly to customer demands.
A cloud-native software architecture is key to achieving a 5G-ready monetisation system, with many benefits that include limitless scalability, and an ideal platform for AI, analytics, and edge computing capabilities for ultra-low latency use cases.
“Most Service Providers are ill-prepared to effectively engage and monetise emerging 5G-enabled use cases and need to urgently transform their BSS,” advises John Abraham, Principal Analyst at Analysys Mason. “With Service Providers looking to get that ROI on 5G, now is the time for them to invest in flexible monetisation systems especially as 5G brings to the forefront the importance of real-time charging capabilities. Given Nokia’s portfolio and expertise, they are well placed to support CSPs on this journey.”
“To unlock 5G revenues and move beyond the traditional data plan model, a major shift among CSPs is needed toward adaptable monetisation systems that utilise cloud-native, scalable and flexible infrastructure and open APIs for easy integration and deployment; and I think this survey highlights the work still to be done,” notes Hamdy Farid, Senior Vice President, Business Applications at Nokia.