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5G operators fail to meet the requirements of 99% of companies

5G operators fail to meet the requirements of 99% of companies

We keep hearing news about further deployments of 5G networks in countries around the world. Stable development of the fifth-generation infrastructure is terrifying to some, while filling others with sheer excitement. However, the 5G for SMEs: what does it mean for CPS? report prepared by Omdia for BearingPoint//Beyond makes it clear: small and medium-sized enterprises do not have as many causes for celebration as the average user.

The report summarises the potential of small and medium-sized enterprises (SMEs) as a major source of future revenue from 5G for telecom operators. It estimates that such businesses now account for 99% of all companies worldwide. This translates into a projected value of the SMEs services market of $433 billion (€356 billion) by the end of 2025. However, this potential remains largely untapped, with most operators concentrating up to 70% of their resources on the large multinational enterprises that make up the remaining 1%.

Despite this discovery, few operators recognise SMEs as a major source of B2B revenue. On the contrary, nearly half (42%) of SMEs see value in 5G and perceive telecom operators as trusted partners in executing their own 5G strategies.

For large enterprises, the situation is reversed. Telecoms believe that it is mainly companies from this sector that will generate 5G revenue, while representatives of large enterprises do not consider operators to be the main 5G providers. The report finds that as many as 72% of respondents would prefer to work with a service provider other than a telecommunications company. 31% would opt for a cloud service provider, while 34% would choose a DIY approach.

According to Camille Mendler, Omdia’s Chief Analyst, several operators are doing quite well when it comes to offerings aimed at small and medium-sized enterprises. Vodafone Spain offers an all-inclusive solution with a range of attractive mobile-first productivity tools. Meanwhile, SK Telecom is working with the Korea Smart Factory Data Association and a software developer, BISTel, to offer a 5G-based big data analysis service to SMEs from the manufacturing sector. This type of approach illustrates how operators can combine 5G capabilities with other resources to deliver tremendous value to SMEs.

Other findings can be found in the full version of the 5G for SMEs: what does it mean for CPS? report.

Source: telko.in

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