We have a plethora of research underway attempting to measure and predict the material impact of the Fifth Generation (5G) and the Internet of Things (IoT). Some of these are concerned with the financial side, while others are concerned with society’s worth. Even though these studies are still underway, it is clear that 5G will encourage innovation across a wide range of industries and provide a platform for emerging technologies such as the Internet of Things to become important parts of our economy and way of life.
On the way to 5G AND IoT
5G is the necessary basis for unleashing the full promise of the Internet of Things. However, while 5G is expected to be commercially available sometime in 2022, the industry is already hard at work developing new global standards and pre-5G technologies that will benefit sectors worldwide.
Because the connection is at the centre of industry transformation, 5G will play an important role in the evolution of communication and the evolution of businesses and society as a whole in the coming years. More than just upgrading networks, operators will be required to reinvent their businesses to take advantage of new opportunities on the road to 5G.
However, operators will need to develop creative business models to link and manage expanding numbers of automobiles machinery sensors and consumer electronics successfully. Currently, the vast majority of operator IoT revenues are derived from connections. Still, in the next five years, revenue will be derived from service enablement platforms, apps, and other services. When operators succeed in building and managing an ecosystem of service partners, filtering data from their IoT platforms, and transforming bulk data into smart data, they may generate incremental income based on the value of data rather than simply its amount.
When it comes to innovation and new ways of engaging their end customers, the Internet of Things promises a fertile field for operators and industries. The capacity to develop new services with a rapid time-to-market from concept to a commercial offering, paired with the appropriate business models and access to a diverse range of complementary offers from ecosystem partners, will be critical success factors.