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Businesses will look to mobile operators to lead enterprise 5G projects

(Image credit: Google)

Nearly two thirds of businesses will seek help from a mobile operator when adopting 5G services, providing carriers with a lucrative new source of revenue that will increase the rate of investment on next-generation infrastructure.

Although 5G networks will allow operators to offer enhanced communications to consumers and reduce operating costs, the real value is believed to be in enterprise services.

Unlike previous generations of mobile connectivity, the ultrafast speeds, superior capacity and ultra-low latency of 5G means mission-critical applications can be powered by cellular technology for the first time. In an era where traditional sources of revenue, such as voice, are falling, it is critical that operators manage to snare some of this emerging market.

Enterprise 5G

Research from Nokia suggests 61 per cent of organisations in the UK and US will work with an operator to establish a direction for their strategy. Awareness of 5G is high, with two thirds of businesses familiar with the concept of 5G and a third having already adopted next-generation services.

Like other studies of this nature, manufacturing, utilities and transprotation are the most enthusiastic industries, with the public sector also excited for the potential of 5G applications. Intelligent video, AR and VR training, and remote-controlled machinery are all viewed as important 5G applications.  

“We conducted this survey to demystify 5G hype and to get to the crux of what will drive enterprises to adopt 5G for their WAN and LAN applications,” explained Josh aroner from Nokia’s service provider business. “It also reveals how CSPs can grow revenue by offering the services that enterprise customers are willing to pay for.

“We anticipate requirements born out of the COVID-19 pandemic will accelerate longer-term 5G plans with a focus on digitization, automation and analytics, which perfectly lend themselves to physical distancing, monitoring and remote working. Now we have a better understanding of what is happening in the network, there is a clear call to action for CSPs to invest in vertical expertise and guide their enterprise customers with more 5G education.”

The findings contrast with a separate study from Omida that found mobile operators were the lead partner in just one fifth of all enterprise 5G contracts signed to date. Analysts have urged operators to work with industrial partners to ensure they are privy to the planning stages of major projects.