The service provider 5G B2B opportunity could be worth $700 billion by the end of the next decade, according to a new report from Ericsson. The key will be for service providers to involve themselves in business customers’ digitalization efforts.
The $700 billion represents 47% of the total 5G-enabled market expected to be served by ICT players. But service providers must extend their reach beyond connectivity and consider what other roles within the B2B value chain to take to capture share of this market, the report cautions.
As the report points out, 5G is already opening new opportunities in the highly competitive telecommunications market. But to realize the full benefits of this opportunity, service providers will need to expand beyond traditional mobile network services for 5G-enabled revenues.
One example would be looking for opportunities from the evolution of Cellular IoT and private networks.
Service Provider 5G B2B Opportunity
“The journey to grow the 5G business starts now by building momentum and identifying 5G-enabled B2B opportunities,” said Jan Karlsson, Ericsson senior vice president and head of business area digital services, in a prepared statement.
Enhanced video services represent the largest opportunity, with up to 17%, or $118 billion of the total value by 2030. But there are other opportunities as well.
Other key findings from the report include:
- Revenues for currently available services are expected to remain stagnant through to 2030, whereas B2B digitalization opportunities will grow at a much quicker pace.
- If realized, 5G-enabled B2B opportunities addressable for service providers can account for up to 35 percent on top of revenues for currently available services by 2030.