Operators need new revenue streams to feed the 5G capex beast

Published: 8 March 2020 - 1:02 p.m.

With the global 5G rollout now in full swing, 2020 will see a whole range of operators launching next generation mobile network services across the world. International telcos are set to plough a gargantuan amount of capital investment into ramping up their fledgling 5G networks.

While the potential return on investment for 5G is huge, it currently lurks somewhere over the horizon, with most industry players yet to nail down exactly how they will recoup the multi-billion dollar offerings they will have laid at the feet of 5G.

Mary Clark, chief marketing officer at Synchronoss, believes that 2020 will be a year of sky high capex for the world’s mobile network operators.

“In 2020, operators will continue to be intensely challenged to find new revenue sources while all capex is being driven towards 5G. At Synchronoss, our focus is to address this challenge and use our solutions and platforms to help operators create new revenue opportunities and improved experiences for their subscribers,” she said.

Clark believes that cloud based services will play an increasingly prominent role in the service offering of telcos in 2020 and beyond.

“We are very excited about several aspects of the business. The first is cloud; Synchronoss is the largest white-label personal cloud provider in the world today and we are seeing the implementation of cloud by operators as a meaningful new revenue stream. It has now become common—if not the norm—for consumers to pay for personal cloud storage for the digital assets they own and operators can play a unique role in delivering this cloud service to consumers. Why? Because unlike OTTs, operators only have one purpose and that is to deliver the services that are truly beneficial to subscribers—for them, it’s not about selling more handsets, or advertising, it’s all about delivering the right service for their subscribers. We know how powerful cloud can be to do this and so it’ll continue to be a big focus for us this year.

“In addition to our personal cloud initiative, this year we’ll continue to place a great deal of focus on our digital experience platform (DXP)—a toolkit to help operators design, deploy, manage and optimise customer journeys across multiple channels from a single platform. DXP is proving itself to be a nimble and simple way to achieve complex integration in situations where the backend of operator environments cannot be altered, but where a change in the customer touch point is required. Making those changes is never easy, especially for legacy operators, but by having a single platform from which to ensure a consistent and seamless single or omni-channel customer experience is key to overcoming the biggest CX headaches.

“Finally, we are excited about the development of our smart building solution; a single platform from which enterprises can monitor and manage all aspects of building management—from electricity to security or heating. Our platform removes the need for several portals, with multiple logins and significantly improves operational efficiency by removing silos and increasing visibility into building management systems. This is something unique within the global market, and we’re excited to see its evolution in 2020,” she added.

Last year, Synchronoss teamed up with the US’ big four (now big three) telcos, to streamline their next generation RCS based messaging services. This year, Synchronoss will continue to work with a joint venture formed by those same US telcos, to deliver an advanced mobile messaging experience across all three mobile networks.

Last year I made the prediction that 2019 would finally be the year for RCS and it was! Several exciting things happened; first, we had the announcement of the cross-carrier messaging initiative led by Sprint, Verizon, T-Mobile and AT&T in the US, where we are providing the platform for the first interoperable operator collaboration for RCS,” she said.

“Second, we saw continued growth of RCS in Japan through the +Message initiative. In fact, in Japan, they have now announced more than 13 million subscribers on +Message. 2019 was an exciting year and 2020 is looking like it’ll be much more of the same.

“The plan for RCS in 2020 will be very much focusing our efforts on getting ready to launch the RCS initiative with the US operators. In addition to that, we will build on the RCS momentum which has picked up over the last year which includes educating, inspiring and ultimately activating brands and their media agencies on the potential of RCS. This is an opportunity for operators to make meaningful revenue, as well as for brands to have a truly permission-based and private-by-design interaction with consumers that is unlike any other messaging platform today,” she said.

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