Study: The Implications of 5G Deployment on Future Business Models

The Body of European Regulators for Electronic Communications (BEREC) published a study on the implications of 5G deployment on future business models. This study aims to help BEREC improve its understanding of 5G in terms of emerging key technologies and services, as well as the obstacles and enablers for success. Through this study BEREC aims to understand the implications of 5G for market structure, market dynamics and competition in the telecommunications market and other related markets.

It is presumed that 5G will lead to a step-change in the capability of mobile networks, opening up possibilities for innovative new services, such as the Internet of Things (IoT), connected vehicles and augmented reality (AR). The BEREC study highlights that 5G has the potential to change business models for network operators relative to the current marketplace, where network operators have offered largely standardised services and differentiation has been limited to pricing plans.  5G also opens up potential new roles for intermediaries in the value chain, positioned downstream of network operators as well as new opportunities for new players upstream of traditional mobile networks.

Much of the discussion surrounding 5G to date suggests that there are certain sectors where 5G will be important – or even critical – such as transport, medical applications and, more generally, IoT. However, there is no specific sector by itself which can provide significant additional new revenues within a reasonable timeframe to drive 5G roll-out. Rather, the BEREC study indicates that 5G is much more likely to have a large number of niche applications across many sectors, meeting particular needs that are not already well met by 4G or by alternative technologies.

As part of its 5G Implementation Strategy, the MCA has embarked on a process by which the feasibility of 5G deployments in Malta will be studied further. Throughout this process, the MCA aims to: understand the industry drag points and value creation drivers; look into the various value propositions and go-to-market challenges; analyse the current and near future network deployment capabilities; as well as look into the possible experimentation and learning opportunities. The BEREC study will, undeniably contribute towards the MCA`s 5G endeavours earmarked for the upcoming years. Throughout its analysis, the MCA will also keep an eye on any possible disruptive 5G models that can be implemented in Malta.

The BEREC’s study is available via this link: “Study on Implications of 5G Deployment on Future Business Models”.