This topic introduces NGN (5G), eSIM, Blockchain; a trifecta of initiatives that could support telco carriers in their ongoing strategic transformation journey
Wireless Carriers transforming from being (traditional) Connectivity Provider → (trusted) Connected Solutions Partner / Architect are best positioned to play a lead role in the Connected Life & Industry 4.0 era
Many Carriers bring to the table substantial industry expertise, existing network infrastructure & assets, extensive consumer reach, robust distribution network as well as the ‘trusted entity’ image… placing them in a prime position to conceptualize, develop & support of a wide array of next-gen connected solutions
Quick Note: Despite commonalities inherent to the industry, wireless telco carriers are increasingly gaining their own unique identity (geographic presence, asset ownership, strategic goals, partnerships, subscriber segment mix, revenue mix, OTT / media capabilities, etc.) and as such their transformation strategy will reflect their individual mid-long term goals
Key enabling initiatives
Supporting telco carriers through this transformative journey are a mesh of enabling initiatives – particularly – the trifecta combination of NGN, eSIM & Blockchain technologies
NGN (5G) – Next Generation Network: Unlocking myriad of connected opportunities
For the most part, Connected, Smart & Autonomous solutions will be powered by –
- Cognitive AI & Machine Learning
- Advancements in Hardware (chipset, sensors, etc.)
- Robust Software & Cloud platforms… and importantly…
- NGN (marketed as 5G) – an always-on, multi-protocol, heterogeneous network being built specifically to support an (ultra-broad) array of connectivity requirements
NGN (5G) is enabling Carriers to unlock a host of diversified revenue streams such as fixed wireless gigabit internet provisioning, scalable virtualized enterprise networks, massive M2M / IoT solutions, smart city initiatives and more
Timeline: As indicated earlier, full scale (global) NGN (5G) deployments aren’t expected at the least until around the 2020 time frame (& beyond)…
…presenting Carriers with an opportunity to tailor their NGN network, solutions & user experiences best suited to their business strategy & customer needs
eSIM: Capitalizing on SIM strengths & IoT/M2M growth
eSIM (embedded SIM) platform has already been benefiting the commercial M2M / IoT segment; enabling enhanced device provisioning, management & billing services… BUT…
… recently has trickled into select number of consumer devices as well (e.g. Tablets, Smartwatches, etc.)
Many carriers worried that if OEMs (en-masse) began shipping smartphones with eSIM, it would lead to higher subscriber churn (impacting revenues)… BUT
…are gradually discovering the disruptive platform’s many benefits & opportunities that more than offsets its challenges (more on this topic in a separate post)
eSIM will enable Carriers to capitalize on the platform’s inherent strengths to innovate & support unique VAS / user experiences in the all-connected-digital era
For example; Carriers could leverage eSIM platform to provide unique experiences (multi-device/user remote provisioning, near real-time personalized offers, seamless global roaming, et al.) for users adopting multiple connected (smartphone + tablet + IoT) devices
Timeline: eSIM equipped smartphones aren’t expected to completely replace current SIM versions in the immediate future (decade+ in some regions)… presenting Carriers with an opportunity to conceptualize unique (eSIM) VAS / user experiences as well as develop related back-end support systems
Blockchain: From Connectivity Pipe → Smart Contracts!
In addition to exploring diversified VAS opportunities, Carriers are also seeking to cut costs, achieve transactional efficiencies and better facilitate transparency & accountability within their (complex) multi-faceted operation… enter Blockchain!
Blockchain will enable carriers to realize these goals (& more), in part due to the platform’s inherent traits – namely – shared ledger, near-real-time immutable updates, cryptographic security and auditable smart contracts
For example, a blockchain platform could aid Carriers in seeking out valuable cost savings; particularly from within their multi-party transactional operations (e.g. Supply Chain operations, commercial services, etc.)
Additionally, Carriers may also find value in integrating blockchain (alongside eSIM & NGN initiatives) as a foundation for building a myriad of unique VAS propositions
Timeline: Blockchain platform is still relatively nascent… BUT… as it matures; carriers have an opportunity to closely study the technology for financial benefits (costs, revenue, ROI, etc.),VAS models, challenges & opportunities specific to their needs, transformation strategy & long-term goals
So…
The Trifecta combination of NGN, eSIM & Blockchain initiatives can enable Carriers to take on a lead role in co/designing, co/developing & supporting a myriad of Connected Life & Industry 4.0 solutions
NGN, eSIM & Blockchain are still evolving platforms, giving Carrier an apt opportunity top closely study their holistic value in reference to their future business operations & transformation goals… Today!
Carriers will particularly need to identify & address a range of challenges inherent to these disruptive emerging platforms… ideally in the early stages of solution conceptualization
Challenges could range from regulatory barriers through to technical complexities, cost commitments (R&D/CAPEX/OPEX)and more
Carriers will also need to assess (early on) the complexity of these initiatives and accordingly choose a development model (in-house, partnership, consortium, of-the-shelf PaaS etc.) best suited to their individual situation & long-term goals
Following segments in this series will focus on NGN, eSIM & Blockchain initiatives in more detail; including potential VAS models, benefits & challenges
Stay tuned!