- Ericsson highlights the importance of focusing on value-added services rather than pure user volume as 5G standalone networks expand, offering opportunities for telcos to differentiate and increase profitability.
- The transition to standalone 5G is accelerating, enabling advanced use cases like network slicing, but telcos are urged to monetize through innovative services rather than competitive pricing alone.
What happened
As 5G Standalone (5G SA) networks gain momentum globally, Ericsson has called on telecom operators to shift their strategic focus from increasing user volume to creating value through innovative services. The company argues that the full potential of 5G, including features like ultra-low latency, massive device connectivity, and advanced network slicing, can only be realized if operators move beyond price-driven competition. Ericsson’s analysis highlights that many operators are currently emphasizing network expansion and customer acquisition without maximizing the unique capabilities of 5G SA.
This transition comes as 5G SA technology unlocks opportunities for personalized and premium services, such as advanced IoT solutions, enterprise applications, and immersive experiences. With standalone architecture decoupling 5G networks from legacy systems, operators can innovate in areas like network slicing, which allows for dedicated and optimized resources tailored to specific use cases. Ericsson’s message serves as a strategic warning for operators to prioritize long-term profitability over short-term market share.
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Why it is important
The emphasis on value creation over volume is a crucial turning point for the telecom industry as it navigates the 5G era. Standalone 5G networks introduce capabilities that go beyond incremental speed improvements, enabling revolutionary use cases like smart factories, autonomous vehicles, and enhanced mobile broadband. By leveraging these capabilities, operators can differentiate themselves through premium services, ensuring sustainable revenue growth in a competitive market.
Furthermore, focusing on value rather than volume can help telcos address challenges such as rising operational costs and spectrum investments. For instance, network slicing not only improves resource efficiency but also allows operators to cater to specific customer needs, whether for enterprises or consumers. Ericsson’s guidance encourages operators to think strategically, positioning 5G as a platform for innovation rather than a commodity. This approach could shape the global telecom landscape, impacting industries and economies reliant on next-generation connectivity.
