The telco industry faces a revenue crisis. Because of the degree of competitiveness in the consumer market, it is nearly impossible to generate new revenue or increase the Average Revenue per User (ARPU)—even through introducing new services. This becomes even more important as current macroeconomic conditions squeeze consumers’ disposable incomes.
While Communication Service Providers (CSPs) have had to experience this for some years already, the effect is now also trickling through to telco network infrastructure vendors—as they realize that CSP investments in consumer macro network deployments are decreasing nearly everywhere.
The mobile private networks opportunity is a sizable one; ABI Research forecasts the Total Addressable Market for private cellular networks to surpass $100 billion by 2030. As a way out of this revenue crisis, CSPs and telco infrastructure vendors will need to move outside of their comfort zone and embrace the immense opportunity that providing 5G connectivity for enterprises will bring.