SPEED-BASED 5G TARIFFS OR 5G TARIFFS LINKED TO DIGITAL SERVICES WILL BE AN IMPORTANT ELEMENT OF THIS PUSH TO MONETISE 5G.
INDUSTRY WATCH
2024 has been transformative for the telecom sector. Generative AI has revolutionised customer care efficiency, 3G network shutdowns accelerated, and ongoing mergers and acquisitions have left the industry speculating about its future landscape. But has it lived up to expectations. and what could be next?
By 2025, 5G networks are predicted to cover one-third of the world’ s population. The focus now, however, is not so much about enhancing coverage, but how network operators can monetise 5G.
SPEED-BASED 5G TARIFFS OR 5G TARIFFS LINKED TO DIGITAL SERVICES WILL BE AN IMPORTANT ELEMENT OF THIS PUSH TO MONETISE 5G.
In its report, The Telecoms Industry in 2024: Trends to Watch, the GSMA highlights that 5G monetisation remains a top priority for operators, with network API exposure identified as a crucial driver for maximising 5G return on investment. It also anticipated that plans such as speed-based 5G tariffs or 5G tariffs linked to digital services will be an important element of this push to monetise 5G to consumers.
We have seen multiple successful cases in the past twelve months, including Nokia’ s breakthrough in end-to-end 5G slicing that enables operators to deliver tailored, high-performance network services, unlocking new revenue streams for advanced enterprise and consumer use cases.
While the GSMA identifies network API exposure as a key driver, the industry’ s challenge is bridging technical innovations like network slicing with compelling consumer-facing use cases. Without a clear value proposition, monetising 5G could remain aspirational.
Moving forward, it is inevitable we will see networks prioritise 5G Standalone deployments to unlock features like network slicing and ultra-low latency, enabling clear pathways to monetisation. We have already seen the likes of EE unveil new locations for 5G standalone coverage, and we can assume more of this in 2025.
AI as transformation driver
It is easy to forget that ChatGPT was launched only in November 2022. While most of 2023 was spent understanding Generative AI’ s potential, we have been able to see some significant use cases in 2024.
In May 2024, Verizon launched new AI tools designed to enhance customer experience, including a Personal Research Assistant, AI-driven matchmaking for customer care and a Segment of Me feature, aimed at personalising interactions and improving service accuracy. Vodafone has also set out to transform customer experience, as part of a far-reaching tenyear strategic partnership with Microsoft launched in January 2024.
However, that does not mean the industry has carved out a clear path to AI success just yet. While promising, we are mostly seeing just that right now, a lot of promise and potential for the coming years.
In Europe, the EU AI Act officially took effect in August but we can expect its provisions to continue to be implemented well into 2025. This act is the first of its kind globally, setting a precedent for AI regulation and we should expect it to shape the way AI use cases develop moving forward.
Generative AI’ s promise is undeniable, but its deployment must go beyond flashy features such as Nvidia powered AI-RAN technology to tackle persistent telecom pain points, such as real-time fault resolution and predictive maintenance. The EU AI Act will be something to watch in the coming months and years it has the potential to shape how AI innovation evolves in the EU and for its citizens.
Adoption of eSIM
Another interesting prediction came from the GSMA. Reflecting on 2023, it anticipated we would be seeing a lot more from eSIMs in 2024. But has that lived up to be true?
There were more eSIM devices and service launches in the first half of 2023 than any previous period, and it is evident that uptake is increasing. Now that eSIM technology is widely available both in smartphones and as a service in more than half of the world’ s countries, the GSMA thought eSIM would receive more consumer uptake in 2024.
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