Amsterdam - February 12, 2019 – BearingPoint//Beyond today launched new research that suggests communications service providers (CSPs) are failing to develop the business-to-business (B2B) solutions that are critical to the commercial success of 5G. The study also finds that businesses around the world are more ambitious about the role CSPs will play in 5G than CSPs are themselves.
5G is the first generation of mobile technology that will have a bigger impact on businesses than on consumers. On average across Europe, Asia and North America, CSPs anticipate a 15% increase in current revenues from B2B 5G services (significant in an industry struggling with sub-2% compound annual revenue growth). 75% of enterprises and small to medium businesses (SMBs) believe 5G will be important to their business citing speed, reliability and more advanced solutions as key reasons.
Businesses want to buy 5G, CSPs want to sell 5G. The problem is that CSPs want to just sell connectivity and standardized ‘connectivity plus infrastructure’ products, while businesses want to buy more sophisticated, complete solutions that better fit their needs and require the integration of multiple technologies from multiple player. CSPs must learn the art of ecosystem orchestration if they want to monetize 5G at scale. Businesses don’t want to build these solutions themselves. And while the vast majority would happily work with CSPs, they’re not waiting around - businesses are already partnering with other companies to solve their business problems. They must move quickly.
Angus Ward, CEO, BearingPoint//Beyond
CSPs must look to broaden their role from communications to providing the broader technologies that support business customers. They need to collaborate with customers to co-innovate and co-create more compelling and sophisticated solutions with a wide range of ecosystem partners, including OTTs, web-scale companies, vertical specialists, even competitors, to meet the demands of business customers.
“European CSPs must re-engineer their mindsets, and businesses, to capitalize on this opportunity,” says Ward.
“North American CSPs now need to act fast, building the right partnerships and the right IT platform to enable them to operate an ecosystem required to meet the expectations of their business customers,” recommends Ward.
“Enterprises and SMBs alike are practically crying out to work with CSPs on 5G solutions - Asian CSPs must heed this call, shake off their doubts and act quickly,” advises Ward.
“In 5G B2B terms, CSPs are pushing at an open door. 98% of European businesses, 92% of Asian businesses and 87% of North American businesses are willing to buy advanced solutions from their CSP. But these must be solutions that address their specific business needs. The only way CSPs can achieve this is orchestrate ecosystems of partners to co-create compelling new solutions that embed 5G,” continues Ward.
If CSPs continue to define their role too narrowly, they will miss out entirely on the high margin opportunities in B2B 5G. Connectivity represents a tiny portion - as low as 5% - of the revenue for each use case. By not taking a lead now, CSPs are gifting the majority of 5G revenues to a new generation of OTTs. The much higher cost of 5G networks means they are seriously jeopardising the ability to monetize their 5G investments. CSPs must quickly master the art of ecosystem orchestration if they want to monetize 5G at scale. If they don’t, technology providers and vertical solution providers will. In Asia, CSPs are already seen as ‘second choice’ partners for businesses building 5G use cases, in North America CSPs rank third, in Europe, fourth. CSPs have to demonstrate ambition and make up ground quickly. Inaction will cost CSPs billions of dollars.
Angus Ward, CEO, BearingPoint//Beyond
To download a free copy of ‘If B2B is the ‘North Star’ for 5G revenues: how do CSPs get there?’, please visit https://www.bearingpointbeyond.com/en/industries/5g/5g-b2b/.
BearingPoint//Beyond commissioned a large-scale primary research study to examine the real attitudes of both CSPs and business customers towards 5G, and the potential role of CSPs in the 5G era. Conducted and analyzed in late-2019, research firm Coleman Parkes interviewed 250 technology decision makers from 100 enterprises and 150 SMBs - in verticals such as manufacturing, financial services, retail, health, education, transportation and media - across Europe, Asia and North America. 90 senior executives within CSPs were also surveyed from these three regions.
Angus Ward will be speaking on: “A Next-Gen Network demands a Next-Gen Organization”, Tuesday, 25th February: 3:15pm – Hall 4, Auditorium 5. BearingPoint//Beyond’s Head of Marketing, Michal Harris, will be speaking on “Unlocking the Value of Partner Ecosystems”, Monday, 24th February: 3:45pm – Hall 4, Auditorium 4.
BearingPoint//Beyond is a rapidly growing SaaS-based BSS and digital platform solution provider helping organizations to reinvent their business model and grow revenue by utilizing digital platforms and partner ecosystems.
Our digital platform solutions are designed to help businesses experiment, launch and monetize new offerings at speed, with minimum risk and cost; building connections between technologies and partners, enabling them to collaborate, co-innovate and expand reach with an ecosystem of partners while taking advantage of new technologies such as cloud, IoT AI, 5G and more. This brings organizations closer to their customers, helping drive higher efficiency and automation, to become more agile in the face of competition. BearingPoint//Beyond is owned by BearingPoint.
BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in three business units: The first unit covers the advisory business with a clear focus on five key areas to drive growth across all regions. The second unit provides IP-driven managed services beyond SaaS and offers business critical services to its clients supporting their business success. The third unit provides the software for successful digital transformation and regulatory requirements. It is also designed to explore innovative business models with clients and partners by driving the financing and development of start-ups and leveraging ecosystems.
BearingPoint’s clients include many of the world’s leading companies and organizations. The firm has a global consulting network with more than 10,000 people and supports clients in over 75 countries, engaging with them to achieve measurable and sustainable success.
For more information, please visit: https://www.bearingpointbeyond.com
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