5G Economics: Where is the Industry Heading?

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By Don Alusha | 1Q 2019 | IN-5406


5G Economics


Recent market developments denote a trend of vendors focusing on value-based business models that are intrinsically characterized by different economic principles and utility on offer. The examples that attest to this development are numerous; 3GPP has proposed a service-based architecture for next-generation 5G core; Ericsson recently announced that, going forward, they are focusing on “value-based business models” as illustrated by the recent launch of their AI-based Operations Engine; and Nokia is embracing cognitive capabilities to pursue growth in 5G, customer experience, and data monetization. Apple, meanwhile, is doubling down on the services narrative, an opportunity poised to be the growth machine in the coming years.


Services represent a departure from transactional business, which is subject to external market factors, and a turn toward a recurring revenue model that is more consistent and predictable. These strategic imperatives have a ripple effect in many other forces that shape the competitive landscape, not least the product pricing, utilities d…

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