5G monetization challenges

With the advent of  the very nature of the services being charged for is changing dramatically, and so monetizing IoT and other 5G services poses its own set of challenges:

• 5G services are expected to be more complex than 4G services, with more components making up each service. A greater volume of service usage is also expected across all three 5G service families. As a result, the volume of transactions to be handled by monetization systems is expected to be orders of magnitude greater than what is currently handled by legacy systems.
• The volume of transactions to be handled by the monetization system is expected to exceed what legacy systems can currently handle.
• Many of the enterprise services defined thus far suggest that the 5G service provider requirements for cost per charging transaction will be substantially lower due to the low margins on each service.
•  Many 5G services will be delivered in conjunction with partners and will require service providers to extend beyond their normal connectivity provider role.

CSPs are now focusing on evolving these legacy monetization systems to effectively monetize 5G and gain a return on their investment in the network rollout with 98% of CSPs planning to alter their BSS to better support 5G. When it comes to 5G revenue growth areas, enterprise services and the B2B2X business model as well as an ecosystem approach will drive this. Roughly 60% of new revenue will come through the B2B2X business model highlighting the importance of partners and an ecosystem approach with 2/3 of enterprise opportunities requiring an ecosystem of partners. The tide is also beginning to change when it comes to CSP willingness to deploy monetization systems in the cloud with 70% of CSPs now willing to deploy on the public cloud.