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The proliferation of 5G will transform businesses and societies: Here's how

2020-09-30
Across the Asia Pacific region, the economy is undergoing unprecedented change as a result of digitisation, hyper-connectivity, 5G and big data convergence. The cost of rolling out and implementing 5G across all sectors of the economy globally is expected to reach at least US$2.7 trillion by the end of 2020, according to research from finance house Greensill. The telecommunication sector alone is investing an estimated US$1 trillion by 2020 to implement infrastructure upgrades.
In this new operating environment, where the speed and low latency of 5G will trigger a wave of innovative applications and services, organisations need to rethink their business and operating models to drive revenue.

Digitisation and the rise of Industry 4.0

The enabler for the new wave of globalisation is digitisation and, to a greater extent, the emerging phenomenon known as Industry 4.0. We’re now in an era where mass connectivity will give rise to intelligence and capability never before experienced, and to survive in Industry 4.0 companies need to fundamentally transform their mindset and culture as well as their existing operator models along with the underpinning strategy and structure.Mobile Network Operators (MNOs) used to take decades to grow in new markets. With digitisation, new entrants can launch in multiple markets within months. Digitisation also enables closer links with consumers, eliminating many parts of the traditional supply chain at a stroke, while data analysis gives organisations instant insights into consumers' preferences and desires.Operators recognise that 5G is not a new network; it is another layer on top of a secure 4G network. The challenges of legacy and the introduction of new technologies to compete more effectively are focus areas for all operators.Telstra is investing more than US$300 million in building Australia's first 5G network and a further US$1 billion in digitisation capability to connect more people through a greater number of services available on a variety of devices. The rise of 5G has given the opportunity to diverge traditional business models.However, operators face the constant challenge of significant capital investment to build on top of 4G as well as prepare their networks for the arrival of 5G. The ROI in capital invested in most telecommunications companies is in the 4-5 per cent range across the APAC region. Telcos need to consider opportunities to become differentiated rather than continuing to invest in a deflationary economic model. The line between free and paid services are becoming a greater area of concern for MNOs.

By Patrick Pathinathan/e27
 Date:08 / 31 / 2020 
https://meet.bnext.com.tw/intl/articles/view/46840
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