Communication Service Providers face two daunting roadblocks before them – one social and one technical – before there’s any hope of reaching the digital service provider promised land.
On the social side, they must overcome general dissatisfaction among their customer base. A recent study by Accenture and Salesforce.com found that among CSPs across the globe, their net promoter score (a measurement of customer satisfaction on a scale from -100 to +100) was an average of six. On the other hand, that same study uncovered an average NPS of 74 among the “born digital” DSPs like Amazon.com and Netflix, the same companies against whom the traditional CSPs aspire to compete.
The technical challenge for CSPs, akin to the social challenge, is overcoming their legacy systems, which are highly fragmented, often monolithic and largely outdated. Designed in the 80s and 90s, these systems were intended to serve a world where services were inextricably linked to a single physical location or device.
Moreover, trying to create services that are fluid and flexible in and around these platforms has only increased the technical “debt” that CSPs must pay down before emerging into the new age.
Like its predecessors, “5G” is primarily a mobile technology. But the ultra-fast mobile broadband offers invaluable monetization opportunities.
HD Mobile Video
Mobile customers will be able to purchase and download an entire high-definition movie in about five seconds (compared to eight minutes with “4G”) and with no lag time and no buffering.
New Content Services
CSPs can monetize new data-intensive over-the-top services through partnerships with OTT providers or by charging them for access to their networks. In addition, they’ll realize new advertising revenues with the ability to support location-based services that can deliver highly targeted multimedia content to customers in their cars and in retail, sporting event and concert settings.
5G will pave the way for the widespread adoption of 3D technologies such as augmented reality and virtual reality, which extend purchase opportunities and transform the way we experience HD movies, TV, sports, video games and business content.
- CSPs must turn to building systems comprised of agile (and largely cloud-based) best-of-breed systems to overcome the technical hurdle before them.
- Fixed wireless broadband, one area of 5G that’s already in the works, will offer many carriers the shortest route to 5G monetization.
- Connected car services are driving recurring revenue growth and transforming the automobile industry.
“The “internet of things” has created an entirely new market for services in the automotive market. Growth from $13.6 billion to $42 billion in 6 years is extraordinary, which has caused the automotive industry to take notice. How we consume transportation stands to be transformed in the process, affecting everyone and everything that moves from one place to another.”