5G: Use Cases, Hurdles and Opportunity

The 20,000 Foot View: 5G promises to be the next big step change both in telco business models and the digital content economy. The arrival of 5G will supercharge the business models of many companies across infrastructure and services but the outlook is less promising for others who are at risk of having their core revenue streams disrupted. As with most nascent, promising technologies, the reality needs distilling out of the hype for 5G and real work needs to be done on honing the positioning and messaging that will woo consumers.
Key Findings

  • The need for partnerships is central to the outlook for 5G
  • Despite the euphoria surrounding 5G, initial consumer uptake will be limited
  • Converged telcos like BT, Deutsche Telekom, and Orange will focus on specific verticals such as broadcast and media
  • X% of consumers report having a music telco bundle while X% have a video telco bundle
  • Music bundle penetration peaks in X% in Sweden, while video peaks in X% in the US
  • 5G threatens cable companies that depend on broadband for revenue growth by enabling telcos to offer households with fixed wireless access connections
  • There is an opportunity for cable providers to open up their networks and offer access to telcos and potentially the tech giants on a wholesale basis
  • X, X especially, will be key to communicating the 5G use case to consumers
  • Current 5G challenges that need addressing include current network instability, energy consumption and simplifying network architecture
  • There needs to be a reality check on the vendor-driven hype surrounding 5G
  • The initial 5G commercial business models will largely be driven by enterprise use cases
  • Huawei is already dominating the global 5G marketplace, becoming the partner of choice for many telcos
  • As of Q4 2018, Huawei had shipped more than X 5G base stations to operators in Europe, the Middle East and South Korea
  • Huawei also has 154 carriers in 66 countries testing or carrying out field trials of 5G
  • BT Sport’s November 2018 broadcast of the EE Wembley Cup was a showcase for leveraging integrated infrastructure and content assets in 5G environments

Companies and brands mentioned in this report: Amazon, Amazon Prime Video, AT&T, BT, BT Sport, Deutsche Telekom, Dolby, Dolby Atmos, EE, Huawei, Orange, Verizon, ZTE

Charts: 2
Pages: 13
Words: 2,368

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