Tiered pricing for tiers of mobile internet access with faster or slower speeds could be a major driver of incremental 5G revenues in Southeast Asia, analysts at A.T. Kearney say, producing an incremental six percent to nine percent life of consumer segment connectivity revenues.
Services for enterprises based on network slicing, new wholesale models and added value could boost service provider enterprise revenues 18 percent to 22 percent, largely driven by new internet of things use cases.
Fixed wireless services might become significant in Indonesia, the Philippines and Thailand, the researchers suggest.
So 5G could add up to $6 billion in revenue for telcos across in South-east Asia by 2025, according to A.T. Kearney analysts. As always, there are assumptions.
Near-term IoT use cases are not especially dependent on 5G as the access mechanism, so much depends on whether 5G gets a nearly market share lead for IoT connectivity.
In the consumer segment, much hinges on whether service providers can create demand for differentiated price tiers, or whether price wars break out that lead to zero ability to raise prices. Also, it might well matter whether app and content providers can be convinced to pay some amount for ability to bundle their services with connectivity.
The other assumption made by A.T. Kearney is that fixed wireless will become a significant opportunity in a few countries (Indonesia, Philippines, Thailand).
In the enterprise customer segments, it will matter whether customers see compelling value in higher-priced 5G connectivity, or whether higher-quality services can be sold at some premium over best-effort grades of service.
It will matter whether value beyond simple connectivity can be bundled or created by the connectivity providers, and whether enterprise customers are willing to pay for such enhanced value.
It may well matter whether service quality optimized by network slicing carries a price premium that many enterprise customers are willing to pay. Also, it will matter whether connectivity providers are able to create wholesale models that enterprises can use to build their own private networks.
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