Although the telecoms landscape in APAC has changed a lot since the onset of the COVID-19 pandemic, data as a key driver of traffic and 5G monetization as the industry’s biggest bottleneck remain important trends impacting the industry. As 5G enterprise develops, enhanced mobile broadband (eMBB) is expected to continue to impact the mobile operator business for the foreseeable future. Regional mobile operators are maintaining 5G connectivity for consumers as a stable revenue source with a proven business model while they explore other growth opportunities (for example, bundling connectivity with value-added services and 5G enterprise solutions).

On its own, 5G will not convince boards. It is the transformational power of 5G converging with cloud, edge computing, and AI that will enable the next generation of innovative digital services for enterprises. Frost & Sullivan notes that not all manufacturers will opt for 5G and only a select few with bigger visions for their businesses will transform their operations with 5G. As AI holds the potential to drive the most transformative change over the next decade, it is currently holding the spotlight as a technology innovator and automation enabler; network automation, particularly, is gaining traction as a must do. Intelligence and automation leveraging AI to address local behavior, needs, and preferences will drive 5G monetization in APAC for customers.

Hyperscalers such as Amazon Web Services (AWS) and Microsoft; IT vendors such as Cisco and HPE/Aruba; and service providers such as NTT and Verizon see potential in the private 5G network space and are offering private 5G managed services integrated with Wi-Fi that leverages dashboards, workflows to automate configurations, and flexibility with core deployment (for example, the option of on-premises and cloud-based solutions). Some mobile operators are open to working with other parties on private 5G networks, but whether the regional mobile operators take this as a positive move or a threat is yet to be seen. The move beyond connectivity to only spectrum provider surely does not look enticing.
Going forward, mobile operators need to be outcome-focused and committed to bringing together the solutions needed by enterprises through strategic partnerships.

The value add that mobile operators can provide can be as much as developing the platform and recruiting ecosystem partners to as little as being the matchmaker or translator between solution maker and enterprise, assuming effort is justified. Whatever the chosen strategy, the mobile operator needs to maintain focus on it. Mobile operators also need to work with the industry to address the industry-wide talent and skills shortage and/or partner with other companies (system integrators, for example) to address gaps in skillsets and improve the customer experience for enterprises.

Author: Mei Lee Quah