5G Marketplaces: A New Frontier for Telecom Revenue

The rollout of 5G technology is transforming the telecommunications industry by creating new revenue streams in both consumer and enterprise segments.
Telecom companies can maximize the 5G opportunity by progressing through three business horizons: core connectivity, premium connectivity, and platforms and solutions enabled through a marketplace.
Establishing a thriving 5G marketplace requires a comprehensive strategy, including defining value propositions, cultivating ecosystems, and investing in robust platforms.
Leading telecom companies are pioneering 5G marketplaces, offering network slicing and tailored solutions for various industries.

With the initial rollout of 5G technology well underway, the telecommunications industry is now entering a crucial phase of leveraging this advanced network to unlock new revenue streams and foster innovation. Beyond offering unprecedented speeds and connectivity, 5G opens the door to advanced machine-to-machine communications, expansive Internet of Things (IoT) ecosystems, and immersive augmented and virtual reality (AR/VR) experiences. It also promises to revolutionize mission-critical business communications through enhanced data speeds and reliability.

As communication service providers (Telecom companies) navigate this changing space, the challenge lies not just in providing connectivity but in becoming architects of a new digital ecosystem. This shift demands a reimagined approach, where telecom companies must refine existing use cases and explore novel applications to maximize the commercial potential of 5G.

Integral to this transformation is the emergence of telecom marketplaces: digital platforms enabling telecom companies to transition from traditional connectivity providers to enablers of innovative solutions and edge-aware enterprise data services.

5G Marketplace: A Platform for Innovation

A telecom marketplace functions as a digital ecosystem where telecom companies, developers, technology vendors, and enterprises can collaborate to offer and consume 5G-enabled services and solutions. This marketplace facilitates the deployment and monetization of 5G technology by providing a structured environment for buying, selling, and integrating various innovative telecom services and applications. Through these marketplaces, the entire telecom industry can work together more efficiently to harness the full potential of 5G, driving a new wave of digital transformation and economic growth.

In a 5G marketplace, telecom companies offer customizable resources such as bandwidth management (dedicated and high-bandwidth allocations, dynamic scaling), latency guarantees, and network slicing. These capabilities empower industry verticals, such as automotive manufacturing, to advance the development of groundbreaking applications like autonomous vehicles, which depend on 5G's real-time data exchange for enhanced safety and efficiency, and smart factories, which utilize IoT and artificial intelligence for real-time process control and predictive maintenance.

Solution providers, acting as innovation engines, build and offer applications tailored to the unique capabilities of 5G networks (e.g., ultra-low latency, high reliability), which are essential for the functionalities of these groundbreaking applications. This ecosystem creates a win-win scenario where telecom companies generate new revenue streams, industry verticals unlock previously unimaginable solutions, and solution providers access a vast marketplace eager for innovation.

Building the 5G Marketplace

Establishing a thriving 5G marketplace requires a comprehensive strategy focusing on defining value propositions, cultivating ecosystems, and investing in robust platforms. According to McKinsey, telecom companies can maximize the 5G opportunity by progressing through three horizons of business building: core connectivity ($10-$20 billion by 2028), premium connectivity ($30-$50 billion by 2028), and platforms and solutions, which offer even greater value. Telecom companies must clearly articulate the unique value their 5G marketplace offers to different stakeholders. Achieving this requires identifying high-impact use cases (e.g., remote healthcare services that leverage 5G's low latency for real-time patient monitoring or smart city infrastructure that utilizes massive IoT connectivity for efficient resource management) and developing tailored solutions that address specific industry needs.

Partnering with diverse players, including system integrators, technology providers, and industry experts, elevates innovation by bringing together varied expertise and perspectives. This collaboration guarantees seamless integration of various components and services, such as integrating IoT devices with 5G networks for improved data collection and analysis.

Investing in a scalable and secure platform is crucial for facilitating the deployment and monetization of 5G services because it provides a reliable foundation that supports the vast array of services 5G enables — including high-speed mobile broadband and mission-critical communications. The platform should support standardized APIs and service definitions to allow interoperability across marketplaces, ensuring that services can be easily integrated and scaled across different environments and user groups. Additionally, fostering a culture of innovation is essential. Encouraging the development of new applications and services and providing incentives for solution providers to create industry-specific applications leveraging 5G's unique capabilities.

Establishing a 5G marketplace with a robust enterprise catalog that also federates partner offerings is vital for creating a comprehensive and diverse service ecosystem. This approach showcases a wide range of 5G-enabled solutions from various providers and fosters collaboration and innovation by integrating third-party services. It allows businesses to access a broader spectrum of specialized solutions, enhancing the value proposition of the marketplace. Moreover, federating partner offerings ensures that enterprises can quickly discover and implement complementary services, streamlining procurement and integration processes while boosting overall market competitiveness and growth.

Embracing the 5G Future: Challenges and Opportunities for Telecom Companies

Creating and maintaining a booming 5G marketplace comes with challenges, including standardization, security concerns, and ecosystem building. A lack of standardized APIs and service definitions can hinder interoperability across different marketplaces while securing sensitive network resources and ensuring data privacy within the ecosystem requires robust security protocols. Building a critical mass of solution providers and industry verticals is an ongoing effort that requires strategic partnerships and continuous engagement.

However, these challenges also open doors for innovation and growth. For example, Deutsche Telekom has established a marketplace offering network slicing, enabling customized network solutions for various industries, a move paralleled by Verizon's efforts in the U.S. with network slicing to boost efficiency and service customization. Similarly, Telefonica has launched a platform specifically catering to the automotive and manufacturing sectors, mirroring AT&T's industry-specific 5G deployment strategies. Deutsche Telekom's effort is further supported by its collaboration with Ericsson to implement secure and flexible network slices for enterprise applications.

The rollout of 5G marks a transformative shift for the telecommunications sector, providing a foundation for innovation and growth. As telecom companies evolve into architects of sophisticated marketplaces, they harness opportunities to revolutionize industries with customized solutions. Now is the moment for telecom companies to embrace this transformative technology, advance their capabilities, and lead the charge in a digitally empowered future.

About the Authors

Siddhi Aggarwal
Consulting Partner - Communications and Media, Wipro Consulting

Siddhi brings 24 years of expertise in telecom solution consulting and architecture, with emphasis on business and digital transformation globally. At Wipro, she drives solutioning, business development, and offer creation for the North American region, specializing in digital transformation, modernization, and cloud transformation across BSS and OSS. Siddhi excels in crafting technology roadmaps and IT strategies that align with client business objectives.

Lalit Kashyap
VP and Sector Head - Communications, Media, and Information Services

With over 20 years of extensive experience in the industry, Lalit is known for his expertise in driving agility and fostering customer-centric growth. In his current role at Wipro, Lalit spearheads strategic initiatives that align with client objectives, leveraging advanced data analytics, cognitive technologies, and artificial intelligence to deliver transformative solutions. His leadership has been instrumental in guiding top-tier organizations through complex digital transformation journeys, optimizing their go-to-market strategies, and enhancing platform and product development.

Lalit’s deep understanding of the communication and media landscape enables him to craft innovative solutions that address the unique challenges of the sector. His commitment to excellence and strategic vision has consistently resulted in significant business outcomes, making him a pivotal figure in Wipro’s success and a trusted advisor to clients.