5G connectivity is poised to transform the way we live and work even more than it already has, ushering in a new age of technology headlined by virtual reality (VR) and artificial intelligence (AI). The GSMA estimates that 5G will benefit the global economy by more than $960 billion in 2030, which has set the stage for mobile network operators (MNOs) to monetize their investment in 5G. Monetization of the invested capital is critical given their steep capital demands.
MNOs investment in 5G networks (spectrum, fiber, and coverage) will reach $600B by 2025, according to a Telefonica Update to GSMA, authored by Juan Carlos Garcia Lopez, SVP Technology Innovation and Ecosystems. However, with such extravagant, necessary CapEx, MNOs find it challenging to ensure profitable returns when selling 5G networks. According to a McKinsey report, MNO returns will be less than 10% if the company continues to sell 5G as a connectivity pipe and focuses only on consumer markets.
Furthermore, adding new high-revenue services is becoming increasingly complex, as many MNOs face a growing clamor from application providers and up-stack players to create “metaverse-capable networks” without much clarity on how application revenue will be shared with them. Thus, operators risk becoming trapped in a “give more, get less” scenario of providing pure-play connectivity while up-stack companies monetize the 5G applications.
A Solution in the Seventh Layer
Fortunately, in today’s highly digital landscape, where technology creates a problem, it often offers a solution. In the case of MNOs and 5G monetization, the answers they seek may lie within the application layer.
The application layer sits at Layer 7, the top of the Open Systems Interconnection (OSI) network model. It ensures an application can effectively communicate with other applications on different computer systems and networks. This layer relies on all the layers below it to complete its processes. The purpose of the OSI stack is to move content from one place to another, allowing a content generator to fulfill the needs of a content consumer. Layer 7 – the Application Layer – provides an elegant means for creating content in human or machine-readable formats.
Only by moving up and into the application layer can MNOs generate new and profitable revenue streams. As they make this shift, MNOs can integrate their formidable network infrastructures into the logic of applications, imbuing applications with unprecedented power as they become network-aware. This combination drives adaptive, immersive experiences with which MNOs can differentiate themselves, breaking free of the bonds of the “dumb pipe.”
With network-aware applications, MNOs can effectively enhance operational efficiency and network usage and optimize application performance. This can help MNOs enable organizations to leverage their 5G infrastructure fully, creating a highly responsive and adaptive digital ecosystem, thus helping ensure a better return on assets (ROA).
Shabodi’s Part
Shabodi’s mission is to unleash the power of advanced networks: to help MNOs unlock the full potential of 5G monetization, helping maximize their returns with a platform that bridges network-aware applications and advanced networks. Our network-aware application enablement platform (AEP) enables MNOs to move away from commoditized and asset-intensive businesses to emerge as true digital service providers supporting medium and large enterprise transformation.
“Shabodi’s AEP improves the efficiency of next-generation AR, VR, XR, and IoT technologies and
said Rutuja Patil, best practices research analyst at
enterprise applications’ operational security, making them ‘network-aware,’ all while offering
network vendor and operator interoperability with a simple network layer API that enables
orchestration and abstraction capabilities,”
Frost & Sullivan, who, in 2023, recognized Shabodi with the 2023 Enabling Technology
Leadership Award.
Shabodi’s network-aware AEP has been proven to enhance experiences by leveraging advanced network services, which include robust security, low latency performance, open standard interoperability, one-time development, application portability, and comprehensive tech support.
Overall, we believe this is essential, especially in industries such as manufacturing, mining, ports, warehouses, and government, including military and defence. In these high-demand verticals, reliable, fast, and flexible private wireless networking has become critical., This means MNOs must be prepared to offer purpose-built digital services that meet the needs of these sectors, enabled by advanced networks.
Download our Shabodi Solution Interworking with Carrier’s white paper to learn more about leveraging the full power of 5G with network-aware application enablement platforms. https://www.shabodi.com/whitepapers/interworking-with-carriers/
Our team of experts Vikram Chopra and Kevin Howe-Patterson will be attending DTW Ignite 2024. We’re looking forward to hearing about your Network API strategies and discussing how network APIs are evolving to address enterprise use cases such as AI, AR, video sensors and drones. Find us at the Next20 Startup Village, stand 6 or schedule a meeting: https://go.shabodi.com/events/dtw24
