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Mobile operators eye $85 billion non-core services

A new study from Juniper Research (www.juniperresearch.com) has calculated that mobile network operators can realize an additional $85 billion in revenues over the next five years through the deployment and enhancement of non-core services including Big Data analytics and IoT (Internet of Things) enablement.

The new research says there is a significant opportunity for operators to move beyond connectivity provision through selling customer data to clients in both raw and packaged (analysed) forms. According to Juniper Research, operators can monetize data models including pay-per usage, metered usage and results-based fees. In turn, clients will benefit from significant cost efficiencies and/or additional value per customer, resulting in a demonstrable ROI (return on investment) on the analytics package.

The research added that for operators to maximize their monetization potential from IoT device connectivity and enablement, they need to ensure that their forthcoming 5G networks are optimized for a multitude of connected devices.

Juniper recommends that operators follow the example of players such as AT&T, Telefonica and NTT DoCoMo, which have set stringent targets for network virtualisation. Using this approach, operators can facilitate customization for individual clients while also reducing expenditure.

However, the research group warns that the backhaul capacity of 5G networks will need to be markedly higher than for predecessor technologies to cope with increased traffic passing through the cells. Juniper also suggests that the need for “ultra-low” latency applications can be addressed by MEC (Mobile Edge Computing) solutions overlaid onto the radio access network, with hosted apps also benefitting from real-time network information.

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