Bracing for 5G’s Impact: Executive Q&A with Anthony Goonetilleke
What impact will 5G have on the communications industry?
As the adoption of 5G accelerates, we'll notice technologies coming together that drive innovation both in the consumer and enterprise spaces. People generally recognize speed as the logical impact of 5G’s rollout. However, there is an entire suite of functionality – ranging from low latency, security, support for IoT and network slicing, to name a few – that will enable the industry to drive innovation on the back of 5G and find new ways to monetize.
Why is monetization a crucial piece of the puzzle?
Think about how we started selling wireless. We used to sell voice and weekend minutes, and that became a commodity. The same happened with text messages – and then data. Now, 5G brings CSPs to a place where they can start monetizing the services themselves. For example, my daughter wanted a VR headset for Christmas. It cost about $600, plus another $1,500 for a PC that can run it properly. That’s a significant investment. With 5G, you won’t need all the high-end components within the headset and PC. Consumers buy a low-cost, low-profile headset that is auto-connected to 5G via eSIM technology, and everything works on an edge network cloud. CSPs can then sell this service together with the device as a monthly subscription. So, my barrier for entry is now lowered because my hardware cost is reduced – and I pay a monthly subscription of $14.99 vs. $2,000. This can be a game-changer.
Is there another part of the 5G puzzle CSPs should consider?
To bring areas like 5G to the next level, we need to start leveraging intelligence appropriately. There must be a better view of how we leverage data while tackling privacy and security concerns. Intelligence can be used to accelerate benefits in a big way. For example, CSPs are starting to use it to better manage traffic and stress on the network by predicting social patterns. This will be critical in a 5G world.
How is Amdocs positioned to help CSPs with their 5G strategy?
Our Open 5G suite has the breadth and depth required for CSPs to evolve all aspects of their business affected by the move to 5G. This ranges from solutions to deploy networks quickly, automate networks with an intelligence-driven approach and capture every monetization opportunity that 5G brings. We believe we have a great opportunity to help CSPs succeed:
- We’ve invested heavily over the years working with standards bodies to build the charging system that supports 5G – both around edge computing and network slicing. We’re also involved with organizations like 3GPP to drive standardized 5G.
- We recently acquired TTS Wireless to further expand our 5G capabilities. This expands our North American footprint with key tier-1 operators and provides a foundation to accelerate future growth.
- Gartner recently named Amdocs as a leader in the OSS Magic Quadrant for the eighth year running. We also won Most Innovative 5G Strategy at Light Reading’s Leading Lights 2019, highlighting our market-leading 5G networking technology and beating other leading competitors.
- Korea Telecom (KT) launched one of the world’s first 5G services, which is supported by Amdocs. This allows them to monetize innovative 5G services for end-consumers as well as enterprises – setting the bar for the industry.
How will new areas like 5G and media impact Amdocs’ bottom line?
Already, network-related services, pay TV and media comprise 30% of our revenue. We expect these areas combined will deliver a compound annual growth rate of 8% to 10% for the three years 2019-2021, making them critical drivers for us and our customers alike.