Most observers think at least some new use cases, revenue sources and business models will emerge in the 5G era, especially in the enterprise space, where most of the internet of things and ultra-low latency processes are likely will occur.
Still, the early-stage enterprise apps are probably going to be much more prosaic: more mobile substitution of fixed network services.
In the business segment of the market, the executives believe 5G will be used to replace existing fixed-line connections.
Some will scoff.
Many thought U.S. cable TV operators would not succeed in consumer or small business voice. They did. Some thought, even if cable operators could sell internet access to small businesses, they could not sell in the mid-market or enterprise. They do so.
Perhaps many believed cable would not succeed in mobility services, after a few decades of poking around. Cable now is on the way.
In other areas, some observers strongly doubted SD-WAN would become a substitute for MPLS. Now most agree that actually is feasible more than once believed.
In the same way, though it might seem improbable that 5G services will be a significant alternative to existing fixed network data connections, that is likely to prove a surprise as well.
There now is a long history of new, imperfect substitutes becoming full replacements for the “better, more robust” legacy services. Mobile 5G and fixed 5G is likely to surprise as well, and not simply in consumer settings.
The IDC survey also shows that nearly 80 percent of polled executives expect 5G to expand revenue opportunities with enterprise customers, with 35 percent predicting they would be able to grow their revenue by 5 percent to 10 percent within the first two years.
Furthermore, operators in Europe are optimistic that they will be able to leverage early 5G deployments to enhance existing enterprise services, such as unified communications as a service (UCaaS) and software-defined wide area network (SD-WAN).
Operators in Europe have identified healthcare as the sector that offers the most revenue potential for 5G, closely followed by government and public sector use cases. Automotive and manufacturing are about tied for third place.
About 33 percent of European mobile operators plan to offer enterprise 5G services in 2019 and that will increase to 84 percent of them in 2020.
More than 65 percent of respondents say enterprise customers already have expressed interest in 5G services.
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