5G promises to revolutionise digital communications , but CPSs need to adapt their business models quickly if they are to see the ROI they deserve .

WRITTEN BY : HARRY MENEAR

4G communications were first launched in mid-December 2009 . Over the subsequent decade , the technology has completely revolutionised the digital economy , ushering in new business models like ride-sharing , the gig economy , and OTT streaming services . The technology supporting these innovations has completely reshaped day to day life , and allowed the companies behind their commercialisation ( like Netflix , Uber and Spotify ) to rake in billions every year .

However , the telecommunication and digital infrastructure companies responsible for the infrastructure underpinning 4G - and the massive capital expenditure required to make the technology a fact of daily life - didn ’ t end up seeing a return on investment ( ROI ) proportionate to their expenses . In fact , as OTT streamers and other digitally disruptive firms continued to grow exponentially off the back of the increased bandwidth and connectivity being funded by communications service providers ( CSPs ), those same CSPs found themselves increasingly boxed into a discrete , growthless segment of the market .

Boxed out of the value chain “ With the 4G rollout , telecoms were the engine that powered a new economy . But it was other players that actually monetised that transformation . Netflix , Zoom , Spotify - basically , all the OTT players capitalised on the telecom industry ' s huge investment in 4G ,” says Francesco Venturini , a Senior Managing Director at Accenture , who has lately found himself focusing on helping telecom operators to monetise their network assets and avoid the same outcomes that the industry saw following the 4G rollout .

52 July 2021