O2 expands 5G Standalone but still struggles to monetise it

O2 expands 5G Standalone but still struggles to monetise it is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• O2 continues rolling out 5G Standalone (SA) coverage in the UK, yet the network remains unmonetised with no chargeable services launched.
• Operators globally struggle to turn 5G SA into billable offerings even as competitors experiment with slicing and niche services.

What happened: 5G Standalone grows in Essex and beyond yet lacks monetisation

UK mobile operator O2 has extended its 5G Standalone (SA) network into more locations in Essex, switching on services in towns including Colchester, Chelmsford, Loughton and Billericay, covering large parts of the county’s 1.5 million residents. The rollout now sees 5G SA available in over 500 UK locations.

O2 has marketed the technology as providing “reliable, faster mobile coverage and stronger signal in more places,” promising smoother experiences for both consumer and business users. The operator also highlights preparation for future technologies such as smart transport, connected healthcare and advanced manufacturing.

Yet, despite this expansion, O2 — like many of its peers — is not charging customers specifically for 5G SA access. The enhanced network is offered as part of existing mobile plans with compatible devices and SIMs at no extra cost, and the operator has not launched any distinct, billable services that leverage 5G SA capabilities.

This challenge is widespread. According to the latest Ericsson Mobility Report, while around 90 operators globally have launched or soft-launched 5G SA, only 33 offer commercial services using technologies such as network slicing that could drive differentiated revenue.

Some markets are further ahead. In Germany, for example, operators such as Vodafone have introduced 5G slicing tariffs for business customers, and Deutsche Telekom has a network slice dedicated to mobile gaming alongside services like NVIDIA’s GeForce Now, though the profitability of these offerings is not fully known.

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Why it’s important

The UK’s continued deployment of 5G SA reflects the industry’s belief that standalone architectures will underpin future innovation. Standalone networks support features such as lower latency, network slicing and improved reliability, which are considered essential for use cases ranging from industrial automation to augmented reality.

Yet O2’s experience highlights a significant challenge: operators can build advanced infrastructure but not necessarily monetise it. Analysts and operators have questioned the business case for 5G SA, noting that consumers rarely pay more for faster or more robust broadband, and enterprises remain cautious about investing in slicing-enabled services.

This situation puts pressure on operators’ investment plans. O2’s 5G SA expansion forms part of a broader £700 million annual mobile network investment by its parent, Virgin Media O2, encompassing spectrum acquisitions and densification work.

Other operators are exploring ways to extract more value from 5G SA. In Germany, slicing tariffs and gaming-focused services represent early attempts at commercial differentiation. Yet it remains unclear whether these offerings will generate significant new revenue or simply shift existing spending.

O2’s approach shows that rolling out next-generation networks is only part of the challenge. The industry must still demonstrate tangible, monetisable use cases that justify investments and deliver clear value to customers in industrial, enterprise or consumer markets.