By Rahul Arora, Business Leader, TMT– Orion Innovation
Telecommunication companies around the world are on a mission to leverage lightning-fast 5G networks to revolutionize their business operations. The convergence of 5G and edge computing in the telecom industry presents unprecedented opportunities for businesses across diverse sectors, revolutionizing entire industries, propelling new revenue streams, and enriching user experiences.
The Edge’s usage in various aspects of consumer and corporate lives rose in India, as 5G rollouts expanded. The Industrial Internet Consortium estimates that globally the manufacturing sector’s digital transformation, driven by 5G and edge computing, will create an additional $1.5 trillion by 2035. On to the healthcare industry, it is set to undergo a profound transformation, and research groups estimate that the global edge computing market in healthcare will reach $8.9 billion by 2025. So, the companies that neglect to devise an edge-focused strategy could jeopardize their position in the expanding market as non-telecom first movers continue to develop the technology and dictate the market dynamics.
Any time there’s new technology coming into the marketplace, there’s always the question of how to put together the business case, return on investment, etc., For a successful 5G and Edge implementation, organizations need to identify killer use cases, create solid business cases, and employ those strategies to drive revenue and growth. This requires a deep understanding of the market, the needs of customers, and the ins and outs of the technology itself, where Industry, Regulatory, OEMs (Original Equipment Manufacturer), SIs (System Integrator), and CSPs (Communication Service Providers) alike need to tackle challenges of infrastructure investment, scalability, interoperability, data security, privacy, and skills gaps while looking to unlock all aspects of monetization.
While it may be tempting to dive headfirst into the hype, there are several technological and financial factors to consider before deployment.
● Infrastructure Investment: The deployment of edge computing nodes, 5G networks, and associated technologies can be capital-intensive. Enterprises and CSPs need to carefully plan their investments to ensure a solid Return on Investment. Collaboration between CSPs, technology vendors, and enterprises would enable sharing of expertise, resources, and infrastructure, driving innovation and accelerating monetization efforts.
● Scalability and Interoperability: Interoperability issues between different devices, platforms, and networks may arise, hindering seamless integration and limiting the scope of monetization opportunities. Enterprises and CSPs must address these challenges by adopting open standards and collaborating with industry stakeholders.
● Customer-centric approach: By tailoring services and experiences to customer requirements, enterprises can increase adoption and loyalty, while CSPs can position themselves as trusted partners in the digital transformation journey.
● Data Security and Privacy: Edge devices may be more vulnerable to cyber threats, and data transmission between edge nodes and central systems must be secured. Robust security measures and privacy policies should be implemented to build trust with customers and protect sensitive data. Privacy policies should be transparent, ensuring compliance with relevant regulations and building trust with customers. Regular security audits and updates are crucial to addressing emerging threats.
● Talent and Skills Gap: The rapid evolution of 5G and edge computing demands a skilled workforce capable of managing and monetizing these technologies. The talent and skills gap can be addressed by investing in training programs, forming partnerships with educational institutions, and promoting industry certifications.
● Regulations: While globally governments are trying to regulate issues related to 5G spectrum interference, Standardisation, Cyber security, and Net neutrality, the cornerstone for success is influenced by the role of private-public collaboration. Adopting an efficacious regulatory framework will eventually be an outcome of Industry participation and cross-border collaboration with ecosystem partners playing their respective role.
● Go to Market: Ecosystem partners need to develop innovative use cases and partnerships to showcase the value of low-latency services, target industries with high potential, and offer compelling pricing models to attract early adopters. Few technology and services players are going a step further in educating enterprises to identify 5G use cases while adopting a POV approach.
The telecommunication companies should not overlook the impact of integrating edge computing and the opportunities it presents. 5G B2B apps that have made use of private networks and Multi-Access Edge Computing (MEC), enables extremely low latency for data applications by extending cloud computing capabilities to the edge of wireless networks. Digital twins, computer vision, virtual and augmented reality, warehouses, AI robots, metaverse, and many other applications are some examples for the same.
In conclusion, the advent of 5G monetization will bring forth fresh concepts and ecosystems, accompanied by challenges that can be tackled through collaboration, innovation, and a focus on customer centric development, thus, establishing a sustainable path to success in the digital age.
