Neutral Hosts Shake up the Telco Business Model

Author: Leo Gergs

This resource looks at the impact of neutral hosts on the telco business model. ABI Research shares its revenue forecasts for enterprise neutral host network solutions and a few key market updates that telcos should consider.

Market Overview

In 2024, the enterprise neutral host market is worth a little over US$200 million. However, the demand for neutral host solutions is increasing, with ABI Research forecasting a US$1.3 billion market opportunity for telcos by 2030. While Infrastructure-as-a-Service (IaaS) accounts for 34% of the revenue pie, the much larger opportunity is in professional services (46% of revenue).

For further context about this forecast, download ABI Research’s Neutral Hosts in Enterprise Cellular: Business Models and Market Activities report.

For more neutral host revenue forecasts—broken down by segments such as region and industry—download our Neutral Host Enterprise Cellular Revenue Forecast.

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“Enterprises are interested in an E2E digitalization solution, not the connectivity element alone.” – Leo Gergs, Principal Analyst at ABI Research

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Key Decision Items

Focus on Managed Services

For success in enterprise 5G cellular services, neutral host providers must expand beyond their usual Connectivity-as-a-Service model. While connectivity is crucial, it's just a component of the overall revenue stack for End-to-End (E2E) solutions. With increasing demand for managed services, forming strong partnerships is essential for meeting enterprise needs, potentially through binding partnerships instead of risky acquisitions.

Get Ready for Market Consolidation

Various telecoms industry players are moving toward a neutral host delivery model for enterprise 5G connectivity. While 2023 witnessed numerous announcements and hype for neutral host platforms by infrastructure vendors and service providers, this indicates a growing interest in such models. However, it also suggests a potential market consolidation due to limited diversity. Providers should anticipate market saturation and prepare for consolidation accordingly. Boldyn Networks’ recent acquisition of Cellnex signals this market trajectory.

Infrastructure Vendors

ABI Research recommends that infrastructure vendors adapt to the rise of neutral host providers by broadening their product range to meet their requirements. This expansion may involve offering small cell solutions, in-building network solutions, and other infrastructure components. Additionally, the emphasis should be on creating interoperable networking components that can be used across multiple tenants.

Key Market Players to Watch

• Boingo
• Boldyn Networks
• Celona
• Federated Wireless
• InfiniG
• Kajeet

Dig Deeper for the Full Picture

These findings were sourced from one of two recent neutral host reports from ABI Research’s Neutral Hosts for Enterprise 5G Research Spotlight. To fully understand the neutral host revenue opportunity, identify potential strategic partners, and note the best practices across industries, check out the product page today!