How can CSPs monetize 5G-driven services? 3 challenges and 4 truths

Enterprises are already leaning on 5G technologies for new services. But how do CSPs need to change to monetize 5G services with enterprises? Here are 3 challenges and 4 truths. 

Challenge 1

Quality assurance and pricing

5G gives CSPs the opportunity to differentiate against competition using quality of service, enabling them to innovate their offerings across multiple industries. To succeed, however, CSPs must be able to measure service performance and consumption and take appropriate actions. CSPs must also be able to price and charge based on the business outcomes they deliver. All these capabilities depend on the CSP’s ability to leverage usage data.

CSPs will need a comprehensive Charging Function (CHF) integrated with a Network Data Analytics Function (NWDAF) to accurately measure and charge for outcome-based services.

Challenge 2

Industry complexity

With 5G, the network and IT landscape will continue to grow and become more complex. CSPs will have private networks, edge compute zones and central locations, and will collaborate with hyperscalers and enterprises. In this environment, CSPs must be able to control their usage data. Only then can they quickly create new business models and adapt to customer needs.

CSPs will need to ensure that all usage data is controlled, cleaned, accessible and understandable for all systems and parties involved. 

Challenge 3

Business ecosystem settlements

The 5G services CSPs provide will be innately connected to preexisting partner ecosystems, including hyperscalers (like Google and Amazon), system integrators and enterprise businesses. Revenue sharing in this type of ecosystem will be a critical business process. As an example, consider an enterprise selling over-the-top services powered by a CSP’s network.

CSPs will need to accurately and quickly handle complex reconciliation, clearing and settlements between partners.

Let’s look at some underlying truths CSPs need to keep in mind when developing new usage-based offerings, and how DigitalRoute can help.

Truth 1

CSPs must preserve current investments

CSPs will need to ensure that they can preserve their legacy investments in networks, sites, IT systems, and customer care, as they grow into 5G business models with increasing data complexity. Getting a return on those investments on the balance sheet is one of the key opportunities in 5G.

CSPs will need an efficient routing mechanism that will allow them to preserve current BSS investments and ensure a smooth migration to the new 5G CCS architecture.

Truth 2

CSPs must adapt to a multi-vendor landscape 

Most CSPs are deploying with multiple vendors in their infrastructure, both to drive bargaining power and to reduce risks. When doing this, you need to make sure that the vendors’ systems can communicate with each other and your legacy infrastructure. This is needed so that you can have a holistic view of the customer, both for billing and analytics.

CSPs need a vendor-agnostic CHF/CGF layer that breaks down data silos and bridges any network generation with any type of charging and billing system.

Truth 3

CSPs must move to cloud-native orchestration

In order to increase agility and keep up with enterprise segments, CSPs must invest in new ways of operating their software. You need to move to a cloud-native approach in order to ensure agility, trust, and safe releases. This approach also enables you to move away from the costly upgrade projects of the old telco era.

CSPs should take advantage of the developer-friendly and flexible infrastructure made available in cloud-native environments, in order to optimize time-to-market agility and resilience. 

Truth 4

CSPs must adopt new business models

A connected healthcare business is going to have a very different model than an automated assembly line running off a private network slice. To successfully meet the demands of new business models, you need to be able to capture and process all service usage data. You will also need a comprehensive cloud-native charging function (CHF/CGF) that is able to integrate with the new set of Charging Trigger Functions (CTFs)

DigitalRoute’s CHF integrates with NEF, AMF, NWDAF and NSMF to support new charging models, such as API exposure charging, mobility charging, analyticsbased charging and network slicing charging. 

Master 5G charging scenarios and business models here 

As a CSP, it’s important to plan early on how you will approach service usage data in 5G services. Our latest white paper offers:

  • 40+ pages of insights for CSPs on usage-based, 5G business models. 
  • Actionable use cases, including monetization scenarios for B2C, B2B and B2B2X. 
  • Deep dives on what 5G monetization scenarios can involve in terms of business models, partnerships and technology.
Download the CSP guide to 5G business models