As the profit and differentiation available from mobile services such as voice, messaging, and data decreases, operators need to look to what mobile analyst Chetan Sharma has termed the fourth wave[1.] in order to open up additional lines of business and create additional revenue streams.
Embracing the cloud for delivering new services, for example, would be the first step for an MNO on the evolutionary trail to becoming a digital telecom, where less emphasis is placed on owning network infrastructure and more emphasis is placed on providing new digital services to a broad range of customers. In this article, we look at what new technologies operators such as MNOs should be looking at to become this provider of digital lifestyle solutions; the internal barriers they may struggle with; and how the cloud platform can enable them to take advantage of these new technologies while lessening minimum risk.
The evolution of 5G
The first new technology to consider is 5G as it will be the foundation that supports and extends the transport layer, enabling the new technologies. Uptake of 4G with its increased services and data was incredibly fast, but there is a broadening gap between 4G-based services and those services that will benefit from 5G. Given the anticipated demand for these services, it's not surprising that research and development of 5G is well underway. In the near to mid-term, this will be the key technology enabler for operators.
Operators need to consider which new technologies have already emerged that take advantage of the IP network provided by 4G, while simultaneously evaluating which new technologies will be enabled by the 5G networks of the future. At the moment, there are already new IP-based technologies, such as Voice Over WiFi (VoWiFi), that enable operators to begin their evolution towards becoming a digital telecom.
VoWiFi, also known as WiFi Calling, has already been launched by some MNOs, providing consumers with better indoor coverage, improved geographical coverage, and lower international roaming charges. Collectively, these advantages should result in increased customer satisfaction and reduced churn. WiFi Calling and other technologies, such as Voice Over Data and Video over LTE, can be deployed by operators through the cloud, allowing them to create new revenue streams while limiting upfront CAPEX investment, minimising risk, and reducing time to market. More about the cloud later.
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1. Operator's Dilemma (And Opportunity): The 4th Wave (2012) C. Sharma, http://www.chetansharma.com/OperatorsDilemmaFourthWave.htm
