Perspective

5G as a launchpad for transformation

Rajbeer Kaur & Vinitha Bhargavan
Published: January 16, 2025

In an increasingly interconnected digital world, telcos are poised to play a crucial role in shaping the future of communication and innovation. The focus of telcos should be to realize the full capabilities of 5G to enable industries to develop business models quickly, incorporating the telecom network and technology as needed. These rapidly evolving systems should empower businesses to monetize any new service, not just their own. Achieving this requires Communications Service Providers (CSPs) to extend their expertise across the entire value chain, fostering a revolutionary approach to collaboration between telco operators and businesses.

The next-gen enterprise marketplace will operate more like a dynamic and open market rather than adhering to the traditional enterprise marketplace model— where telcos resell partner products to their customers. Businesses will have the flexibility to buy services and components from various partners, enabling them to create and launch new services and solutions effortlessly.

5G's unprecedented speed, connectivity, and reliability drive the telecommunications industry into a new era of traditional telcos transforming into tech-cos. This evolution reflects the convergence of telecommunications and advanced tech such as Artificial Intelligence (AI), the Internet of Things (IoT), cloud-based solutions, and Industry 4.0. As we explore the potential of 5G, we can expect to see transformative changes across various industries, driving progress and enhancing the quality of life for people worldwide.

Unlocking economic growth and new business models

The deployment of 5G is expected to have a profound economic impact. According to a study by the World Economic Forum, 5G could contribute up to $13.2 trillion to the global economy by 2035. This economic boost stems from creating new business models, industries, and services that leverage the capabilities of 5G. Industries like smart manufacturing, advanced logistics, and supply chain management are already experiencing the ripple effect, leading to increased productivity, innovation, and job creation. The B2B2X model, a standout strategy, enables telcos to enter new markets, diversify revenue streams, and explore innovative monetization opportunities. As a backbone for platform-driven ecosystems, 5G opens unprecedented avenues for market expansion and value generation.

Powering emerging technologies

The intersection of 5G and AI is a cornerstone of technological transformation. By enabling faster data transfer and real-time analytics, 5G accelerates the development and deployment of AI applications across various domains, from healthcare to finance to transportation. 5 G's enhanced bandwidth and low latency support faster data transfer, enabling real-time analytics and advanced AI model deployment. This accelerates the development and implementation of advanced AI solutions across various industries.

5G's capabilities and telco cloud infrastructure work in tandem to offer highly reliable, low-latency networks that support critical applications. The telco cloud offers a flexible and scalable environment that dynamically allocates resources to meet varying demands, while 5G provides the ultra-fast connectivity essential for real-time data transmission.

Furthermore, edge computing—powered by 5G—processes data closer to its source, reducing latency and enhancing efficiency. This capability supports critical real-time applications such as augmented reality (AR), video analytics, and remote-controlled machinery. For instance, Volvo Construction Equipment, in collaboration with Telia and Ericsson, established Sweden's first industrial 5G network to enable safer and more efficient remote operations. Another example is Telia and Ericsson launching NorthStar – a 5G innovation program for industrial enterprises to develop and implement new digital solutions. Similarly, Telia and Ericsson's NorthStar innovation 

program aims to accelerate industrial 5G adoption, with early adopters like AstaZero leading the charge in automated transport systems.

Network slicing is a key feature of 5G, enabling the creation of multiple virtual networks within a single physical infrastructure. Each slice is customized to meet the unique requirements of different use cases, ensuring optimal performance and security. This flexibility ensures optimal performance for applications like emergency services, industrial automation, and cloud gaming. Deutsche Telekom, for instance, has introduced a dedicated 5G network slice for gaming, providing ultra-low latency for seamless experiences. Platforms like Google Stadia and Microsoft's xCloud also leverage 5G to bring high-quality gaming to mobile devices without relying on powerful hardware.

5G in IoT is driving transformation with its ability to connect multiple devices simultaneously without compromising performance. This scalability is essential for smart cities, industrial automation, and connected healthcare systems, where thousands of sensors and devices need to operate in unison. Apart from this, 5G connects machines and equipment in factories to optimize production processes and reduce downtime, which is a result of another application of the mmTC (massive machine-type communications). 5G also has the potential to revolutionize industrial automation by enabling more sophisticated and reliable machine-to-machine (M2M) communication. This can lead to the development of smart factories where machines and robots work harmoniously to optimize production processes. For example, Vodafone has collaborated with Ericsson to create smart factories that utilize 5G-enabled robotics and automation to increase efficiency and productivity. In Maharashtra, India, 5G-powered solutions, including drones and IoT sensors, optimize farming practices by monitoring soil, crops, and weather conditions in real time, increasing efficiency and yield. Collaborations like the above, between Vodafone Idea's CSR arm, Vodafone India Foundation, and Nokia demonstrate the potential for scalable smart farming initiatives.


Redefining customer experiences

5G transforms industries with a customer-centric approach, emphasizing personalization and interactivity in B2B2X products. 5G-enabled AR/VR applications offer interactive and tailored shopping experiences in retail. Meanwhile, hyper-personalization powered by real-time data analytics can provide customers with highly specific recommendations and promotions. Store analytics, enabled by 5G's speed and connectivity, allow businesses to optimize layouts, track customer behaviors, and improve inventory management. Walmart, for example, is leveraging 5G-powered robots to streamline inventory management and increase operational efficiency and customer satisfaction. In sports and entertainment, fan experiences can be transformed with 5G, offering immersive AR/VR engagements, instant replays, and tailored in-venue services that elevate satisfaction. Meanwhile, in healthcare, 5G can support telemedicine services that provide patients with real-time consultations and personalized treatment plans. This focus on the end consumer ensures that B2B2X products meet business requirements and deliver exceptional value to the end user. 

Evolution of industries with 5G

The advent of 5G transforms industries, paving the way for innovative solutions and enhanced efficiencies.

5G can enable the implementation of smart agriculture solutions, where sensors and drones monitor crop health, soil conditions, and weather patterns in real time, optimizing farming practices and increasing yields.

The healthcare industry stands to gain immensely from 5G's ultra-reliable low latency and high bandwidth. Remote medical consultations powered by 5G allow doctors to diagnose and treat patients in real time, especially in underserved rural areas. Additionally, 5G facilitates real-time monitoring of employee health metrics—like heart rate and blood pressure—enhancing workplace safety. Notably, Vodafone's collaboration with healthcare providers demonstrated groundbreaking applications like live 5G remote surgery, where surgeons controlled robotic arms with negligible latency.

The entertainment and media industry embraces 5G for its high-speed connectivity, enabling seamless streaming of high-definition video, VR, and AR experiences. Platforms like Netflix and Disney+ are leveraging 5G to provide viewers with superior, buffer-free streaming. This technology also creates immersive and interactive entertainment options, reshaping audience engagement.

5G is a catalyst for the evolution of education, supporting virtual classrooms and online learning platforms that break geographical barriers. With its ability to power AR and VR educational tools, 5G creates immersive, hands-on learning experiences that bring concepts to life and redefine how students engage with knowledge.

The transportation sector is set to benefit significantly from 5G's capabilities. Autonomous vehicles rely on real-time communication enabled by 5G for safe and efficient navigation. The technology also supports smart transportation systems that integrate multiple modes of travel, offering seamless commuter experiences. 

Connected public transport systems can provide real-time updates on schedules and routes, enhancing convenience and reducing travel times. For instance, Japan's NTT Docomo and Toyota have partnered to create a 5G-based platform supporting connected vehicles and smart city infrastructure.

The road to 6G

While 5G continues to expand and revolutionize various industries, the horizon is already promising the next leap in telecommunications with 6G technology. Researchers and technologists envision 6G to offer even greater speeds, lower latency, and more sophisticated network capabilities. This upcoming generation is expected to integrate advanced AI functionalities, support for holographic communication, and enhanced Internet of Everything (IoE) applications. As we stand on the verge of this technological evolution, the possibilities that 6G holds are vast, positioning it as a crucial enabler for future advancements.

5G is revolutionizing industries by enabling unparalleled speed, connectivity, and innovation. It empowers telcos to transition into tech-cos, driving advanced AI, IoT, and Industry 4.0 solutions. With features like network slicing, edge computing, and telco cloud infrastructure, 5G supports real-time analytics, smart manufacturing, and immersive experiences. The B2B2X model fosters business collaboration, creating dynamic markets and new revenue streams. Industries like healthcare, transportation, and media benefit from enhanced efficiency and customer-centric solutions. Estimated to contribute $13.2 trillion globally by 2035, 5G is a transformative force, paving the way for smarter technologies and innovations, while setting the stage for 6G.

 

Vinitha Bhargavan

Vinitha Bhargavan

Director, Telecom Consulting, Virtusa 

Vinitha Bhargavan is a seasoned telecommunications expert specializing on operational support systems (OSS) and is responsible for creating and implementing strategic OSS offerings that not only address client needs but also unlock new growth opportunities, enhance operational efficiency, and accelerate business outcomes in the ever-evolving telco landscape.

Rajbeer Kaur

Rajbeer Kaur

Senior Manager, Telecom Consulting, Virtusa

Rajbeer Kaur specializes in business process reengineering and strategic framework development to drive transformation. She focuses on creating customized consulting assets that enable clients to optimize operations and accelerate business growth.

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