Enterprise5GMonetization:

AcoreissueforCSPs

RESEARCHEDBY

COMMISSIONEDBY

INTRODUCTION 02

Enterprise5G:Appetitesaregrowingfornewexperiences

Fortypercentofenterpriseshavesomeexperienceof5Gtoday,accordingtoOmdiaresearch.

Enterprisesarebeginningtobuyinto5Gforthebusinessoutcomesthatthistechnologycanhelpsupport:notablyenablingreal-timedecision-making,betteroperationalefficiency,andnewcustomerexperiences.

Buttransformationalusesof5Garestilllimitedtoanarrowbusiness-to-business(B2B)customersegment—typicallylargeenterprises—andasingleflavorof5G,usuallyacustomprivatenetworkdeployment.

AGROWINGEMERGENCY

Thestatusquoisagrowingemergencyforcommunicationserviceproviders(CSPs).ThewiderB2Buniverseismissingoutonarichportfolioof5G-basedsolutionsthatcouldmakebusinessesmoreresilient,efficient,andinnovative.

Thisalsomeansthatenterprise5GcontributiontoCSPrevenuegrowthanddiversificationcouldbeatrisk.

HowcanCSPsaccelerateandencourage5Gtake-upacrossthewiderB2Buniverse?RunningtheCSP’smobilecoreassoftwareasaservice(SaaS)inapubliccloudisoneapproachthatmayhelp.

INTRODUCTION

03

AmobilecoreasSaaScouldaddresssomeenterprise5Gchallenges

Whatisamobilecore?

Thecoreisthebrainofthemobilenetwork.Itmanagesallaspectsrelevanttosubscribers,includingmobilitymanagement,routing,datadownloadspeeds,andcharging.

Howdoesamobilecoreoperate?

Traditionally,aCSP’sin-houseexpertsruncorefunctionsonacustomprivate(on-

premises)cloudinfrastructure,althoughroutinemaintenanceisoftenoutsourced.

WhymobilecoreasSaaS?

RunningamobilecoreasSaaSinapubliccloudofferslowersetupcostsandfastertimetomarket.Serviceexperimentation—forone-offormassconsumption—iseasier,andresourcescanscalereliablyontheflyasdemandgrows.

THE5GMONETIZATIONCHALLENGE

04

Enterprise5Grepresentsarichmenuofdigitalservices

Enterprise5Gincludesmultiple

THEENTERPRISE5GPORTFOLIO

SERVICE

Public5G

5GFWA

Private5G

5GNetworkslicing

PROPOSITION

Anywhereproductivity

Whentimeismoney

Optimalcontrol,ultimatesecurity

Myexperience,myway

FOCUS

Person

Site

Campus+

Virtualgroup

CONSUMPTION

SOURCE:OMDIA

Personaldevice

Router

5Gcore,accesspoints

Virtual5G“slice”

valuepropositionsservingdifferentbusinessneedsinvalueandoperationalcomplexity.

Butconsumingthe5Gportfolioisnotassimpleasitcouldbe.Most

enterprise5Gservicesarenotavailableondemand.

CSPsdonothavetheoperationalagilitytoprovidethisyet,evenwhenenterprisesareeagertoadoptnewservicessuchas5Gnetworkslicing.

OFFTHESHELF ALACARTE

THE5GMONETIZATIONCHALLENGE

05

CSPsarelimitingtheirenterprise5Gpotential

Fewerthan0.5%

oftheworld’sbusinessesareprimaryenterprisetargetsofCSPs.

98%ofbusinesses

donotneedtheprivate5GservicesthatCSPsaremosteagertopromote.

Athird

ofbigbusinesseswanttouse5Gnetworkslicingbutcannotbuytheserviceofftheshelf.

CSPsarefocusingtheir5Geffortsonlargeenterprises.ThisispartlybecauseCSPsdonothavecost-effectivewaystotestandindustrializemorecomplex5Gvaluepropositionstargetingsmallerfirms.

THE5GMONETIZATIONCHALLENGE

06

Thestatusquo:Timetorevenueremainsslow

1000+

NUMBEROFEMPLOYEES

Aconsultative5Gsaletolargerenterpriseswithalongtimeto

TheB2Buniverse

FIRMOGRAPHICS

LARGE

BEST-FIT5GSERVICES

revenueandlesspredictablemargin

Self-serviceof5GsimpleservicestoSMEsandSoHoswithrapidtimetorevenuebutlimitedmarginuplift

250

10

SMALL&MEDIUM(SME)

0

NOTE:NOTDRAWNTOSCALE.BASEDONEU27B2BDEMOGRAPHICS.USSMESAREUSUALLYDEFINEDASHAVING<500EMPLOYEES.

SOURCE:OMDIA

SMALLOFFICE/HOMEOFFICE(SOHO)

Key:

Public5G 5GFWA

slicing

Private5G 5Gnetwork

07

WHATSELLSENTERPRISE5G?

Valueisshiftingfromconnectivitytoreal-timeexperiences

56%willpayforreal-timedataanalyticsandenhancedSLAs

9outof10enterprisesseecompellingusecasesforimmersivetechnologies

34%ofenterprisesexpecttoinvestin5Gnetworkslicingwithinthenexttwoyears

(AR,VR,XR)

WHATSELLSENTERPRISE5G? 08

Bepredictablypredictable

QUALITYISTHETOPDECISIONDRIVER

Enterprisesofallsizes,fromSoHosandSMEstomultinationalenterprises,arewillingtopayforbetterdigitalexperiences.

Securingexperienceisfundamentalforconsiderationofmorecomplexservicescombining5Gwithedge,XR,analytics,andbeyondtodelivercompellingbusinessoutcomes.

Enterprises’topexpected5Gbenefits

29%

31%

34%

37%

41%

Greaterreliabilityforsystems

andapps

Bettercompute/apps

performance

Newservicesandrevenues

HOWAMOBILECOREASSAASCANHELP

Theon-demandmodelguaranteesresourceavailability,ensuringdigitalexperienceisnevercompromised.Arocksolidplatformthenbuildstrusttotrymorecomplexservicesandexperimentalbusinessmodels.

Improvedsecurityor

compliance

Costsavingsormoreeffective

costmodels

0%

10%

20%

30%

40%

50%

NOTE:N=160

SOURCE:OMDIA

Percentageofsurveyedenterprises

WHATSELLSENTERPRISE5G?

09

Makeconsumptionsimple

ENTERPRISESDON’TWANTSURPRISES

Enterpriseswanttoavoid5Gstickershock.

Only10%favorapay-as-you-usemodel.

Subscriptionisthemostrecognizedanddesirablepaymentmodel(donotconfusepaymentpreferencewithconsumptionpreference).

Enterprises,preferredpaymentmodeltoaccess5Gresources

1%

Don’tknow

14%

Short-termrentalof5Gassets(e.g.,5Gnetworkslices)forspecificoccasion

34%

Fixedmonthlysubscription

9%

Consumption-basedfee

HOWAMOBILECOREASSAASCANHELP

AmobilecoreasSaaSoffersCSPsdeepcontrolovernetworkresourceallocationandperformanceusingapredictablesubscriptionmodelalignedtowhatenterpriseswanttoo.

NOTE:N=160

SOURCE:OMDIA

15%

One-offandongoingfeesfordesign,buildandmanagementservices

27%

One-offpaymentfor5Gequipmentandimplementationservices

WHATSELLSENTERPRISE5G?

10

Satisfyoperationalexpectations

EXCELLENCEMOTIVATESENTERPRISESTOINVEST

Today’senterprisedecisionmakerswant5Gtoimprovequalityinproductsandinhowpeoplework.

Real-timedecision-makingandautomatedprocessesarealsohighlyawaitedinvestmentcases.

Futureuseswillrelyonoperatingfail-safelow-latencyenvironments,oftenusingautonomousvehicles.

Topenterprise5Ginvestmentareas

Improvinginspectionprocessestoreduceinstancesofproductiondefects/substandardparts

2%

4%

2%

6%

4%

4%

8%

8%

8%

10%

6%

6%

16%

2%

Helpingremote/fieldworkersrespondto,identify,and

fixproblemslater

Improvingmaintenanceoperationstoreduce

downtimeandstoppages

Accessingreal-timesituationaldatatoimprove

decision-makingandresponse

HOWAMOBILECOREASSAASCANHELP

Itisanelegantandautomateddeliverymodel,learningviaartificialintelligence.Humanssimplycannotmanagethecomplexconsumptionusesaround5Gthatareattractingfutureinvestment.

Automatingprocessestofillhumanskillsgaps

Verifyingregulatorycompliance/conditionsof

insurance

Providingtestandsimulationtoolstothe

widerworkforce

0%

5% 10% 15% 20% 25%

Percentageofenterprisescitingoperationalefficiencyasatopchallenge

Budgetedtodeploy5Gwithin12months Live5Gdeployment

NOTE:N=49

SOURCE:OMDIA

userid:549683,docid:154693,date:2024-07-26,

WHYAMOBILECOREASSAAS?

PAGE

11

Reactfasttodemand

PIVOTASCUSTOMERNEEDSEVOLVE

Productivitygainsareapotenttriggerforcurrententerprise5Ginvestment.

Improvedqualityofoutputandbetterdecision-makingarefuturedriversof5Ginvestment.

Verifyingcomplianceisanotherimportantdriver.

Top10enterprise5Ginvestmentareas

Improvinginspectionprocessestoreduceproductiondefects/substandardparts

8%

4%

6%

6%

6%

5%

4%

6%

5%

5%

4%

4%

4%

3%

3%

4%

4%

3%

3%

3%

3%

3%

3%

3%

Automatingprocessestofillhumanskillsgaps

Accessingreal-timesituationaldatatoimprovedecision-makingandresponse

Helpingremote/fieldworkersrespondto,identify,andfixproblemsfaster

Verifyingregulatorycompliance/conditions

ofinsurance

Reducingrisk/exposuretooperationalhazard

Movingtodigital,cloud-basedservicemodels

Expandingcustomerengagementchannelstoboostsatisfactionandloyalty

Improvingenergyefficiency

Increasingdigitalsaleswitheffectivetry-before-you-buymethods

Improvingcollaborationandideationwith

remotepartners

Reducingvolumeofwaste

HOWAMOBILECOREASSAASCANHELP

MobilecoreasSaaScanhelpCSPsdeliverandsupportanincreasinglycomplexrangeoftechnologiesandvariableresourceneeds.

0% 2% 4% 6% 8% 10% 12%

Percentageofenterprisessurveyed

Budgetedtodeploy Livenow

NOTE:N=160;5GINVESTMENT,CURRENTANDINTHENEXT12MONTHS

SOURCE:OMDIA

Mirrorcustomers’habits

PUBLICCLOUDSANDAS-A-SERVICECONSUMPTIONARECOMMONAMONGENTERPRISES

Fortypercentofenterpriseswouldconsiderconsumingnewservicetypessuchas5GasSaaS,andalmostaquarterareopentoedgeasaservice.

SomesecurityfunctionsareacceptableasSaaS:risingvolumesofdatatobeparsedmakeuseofapubliccloudapragmaticoption.

Whatreallymatterstoenterprisesisperformancetransparency,accountability,andcontroloverresourcesinthecloud

Enterprises:WhichdigitalresourceswouldyouconsumeasSaaSfromapubliccloud?

30%

25%

36%

14%

17%

18%

22%

28%

5GconnectivitySecurityassuranceIdentitymanagementIoTmanagement

Edgecomputingresources

Billingandtransaction

management

Applicationdevelopmenttools

Analyticsservices

HOWAMOBILECOREASSAASCANHELP

OperateasCSPs’keygrowthtargetsdo;aligntotheirbusinesscycle.SupportthepremiumSLAsthatenterpriseswillpayfor.

NOTE:N=160

SOURCE:OMDIA

0% 5% 10% 15% 20% 25% 30% 35% 40%

PercentageofenterpriseswillingtoconsumeSaaS

Addressthesecurityimperative

TOWARDREAL-TIMECOMPLIANCE

Securityisanevergreenissuethatcontinuestoevolve,andtocommandinvestment.

Enterprisesneed5Gforreal-timecompliance,monitoring,andmakingbetterfact-baseddecisionsduringacrisis.

Crisisresponseimpliestheneedtoflexdigitalassetsondemand,butongoingmonitoringindicatesasubscriptionmodel.

Topenterprisechallenge:Enhancedsecurity–useof5Ginsolution

2%

4%

4%

4%

7%

4%

4%

7%

4%

7%

11%

13%

Verifyingregulatorycompliance/conditionsofinsurance

Integratingreal-timephysicalanddigitalsecuritymanagement

Expandingmethodsofsupervision

forassetsandstaff

Improvingassetrecordingand

management

Accessingreal-timesituationaldatatoimprovedecision-making

andresponse

Improvingdisasterpreventionand

mitigationstrategies

HOWAMOBILECOREASSAASCANHELP

SaaScanhandletheexpandingperimeterandopportunityofsecurity,eitheradhocoronasubscriptionbasis.

0% 5% 10% 15% 20% 25%

Percentageofenterprisescitingenhancedsecurityasatopchallenge

Budgetedtodeploy5Gwithin12months Live5Gdeployment

NOTE:N=46

SOURCE:OMDIA

Bepreparedforfuturedisruption

EXPECTGROWINGAPPETITETOEXPERIMENT

Thenumberofenterprisesdescribingthemselvesasinnovatorshasquadrupledfromprepandemiclevels.

Enterprisesinvestingin5Gtosupportanewbusinessmodelorrevenuestreamareasmallbutgrowingminority.

Theseenterprisesarelookingto5Gtoacceleratecollaborativeideationandimproveproductqualityandoutput.

Enterpriseinnovators,currentandplannedusesof5G

7%

11%

7%

7%

4%

4%

4%

7%

4%

7%

4%

7%

4%

4%

7%

Enablingcocreationwithcustomers

Improvinginspectionprocessestoreduceinstancesofproductiondefects/substandardparts

Improvingcollaborationandideationwithremotepartners

Increasingspeedofproductdesignandtestingcycles

HOWAMOBILECOREASSAASCANHELP

SaaS-deliveredCSPoperationscanprovideon-demandresourcesandtightorchestrationtosatisfyenterpriseappetiteforexperimentation.

Improvingenergyefficiency

Implementingmixedrealitytoimproveemployeeefficiency(e.g.,diagnostics)

Helpingremote/fieldworkersrespondto,identityandfixproblemsfaster

0% 5%

10%

15% 20%

Percentageofenterprisesinvestingin5Gtolaunchanewbusinessmodel/revenuestream

Trialing/runninga5Gproofofconcept Budgetedtodeploy5Gwithin12months Live5Gdeployment

NOTE:N=28

SOURCE:OMDIA

Nextsteps

Make5Gsnackable

Focusonoff-the-shelfenterprise5Gmonetizationnotjustàlacarteservicesofferinguncertainprofitmargins.

UsemobilecoreasSaaStoindustrializeaccesstonewdigitalexperiencesacrossawiderrangeofB2Bcustomers.

Mirrorenterpriseconsumption

Followyourenterprisecustomers’lead:makeSaaSinapubliccloudapreferredconsumptionmodel.

UsemobilecoreasSaaStoautomateresourcemanagement,freeingupin-houseexpertstofocusonstrategicdecisions.

Fuelinnovationappetites

Makecocreationsprintscommon,notonlybetweenCSPnetworkandenterpriselinesofbusinessbutalsobetweenCSPsandenterprisecustomers.

UsemobilecoreasSaaStoideate,test,andlaunchnewservicesfaster.

16

About

Nokia

AtNokia,wecreatetechnologythathelpstheworldacttogether.

Asatrustedpartnerforcriticalnetworks,wearecommittedtoinnovationandtechnologyleadershipacrossmobile,fixedandcloudnetworks.Wecreatevaluewithintellectualpropertyandlong-termresearch,ledbytheaward-winningNokiaBellLabs.

Adheringtothehigheststandardsofintegrityandsecurity,wehelpbuildthecapabilitiesneededforamoreproductive,sustainableandinclusiveworld.

Formoreinformationvisit:

W

Nokianetworks

Nokia-for-service-providers

Omdia

Omdiaisaglobaltechnologyresearchpowerhouse,establishedfollowingthemergeroftheresearchdivisionofInformaTech(Ovum,HeavyReading,andTractica)andtheacquiredIHSMarkittechnologyresearchportfolio*.

Wecombinetheexpertiseofmorethan400analystsacrosstheentiretechnologyspectrum,covering150markets.Wepublishover3,000researchreportsannually,reachingmorethan14,000subscribers,andcoverthousandsoftechnology,media,andtelecommunicationscompanies.

Ourexhaustiveintelligenceanddeeptechnologyexpertiseenableustouncoveractionableinsightsthathelpourcustomersconnectthedotsintoday’sconstantlyevolvingtechnologyenvironmentandempowerthemtoimprovetheirbusinesses

–todayandtomorrow.

*ThemajorityofIHSMarkittechnologyresearchproductsandsolutionswereacquiredbyInformainAugust2019andarenowpartofOmdia.

17

Methodology Author

Omdiaconductedadedicatedsurveyof160enterprisetechnologydecisionmakersabouttheir5Ginvestmentplans.Industriesrepresentedincludemanufacturing,healthcare,energyandutilities,transportation,publicsafety,sportsandentertainment.

Furtherreading

Trendstowatch2023:Enterprise5GMonetizationEnterprise5Gsurveyinsights2022

EnterpriseStrategy:HowtoSatisfyInnovativeAmbitionMakingEnterprise5GPay:TheHumanFactor

CamilleMendler

ChiefAnalyst,

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