Since the arrival of the first commercial 5G networks five years ago, their full implementation has not yet reached its final stage, with only around 30% of all base stations worldwide equipped with 5G radio. The need for high and ongoing investment poses a significant barrier for operators, who need to increase their revenue to upgrade their infrastructure. However, according to Global Data, global spending on 5G services is expected to reach $995 billion by 2029, demonstrating its enormous potential. Although telecom operators have struggled to recoup their initial 5G investments, innovative solutions are beginning to show results. Nokia is in a key position to support operators by focusing on cutting-edge solutions that optimize 5G network performance and exploring new business models.

For operators to make their 5G networks profitable, they must offer unique products and services that cannot be replicated by other forms of connectivity. Nokia provides a range of technological solutions:

Network slicing is one of Nokia's most advanced technologies and has already been implemented by international operators such as Deutsche Telekom, T-Mobile US, Singtel, and Reliance Jio. This technology enables the delivery of services with varying performance levels, helping to differentiate service offerings and tailor networks to the specific needs of each customer, whether business or consumer.

Network as a Service (NaaS) platforms, which allow operators to offer portions of the network with guaranteed performance and high levels of security.

Network APIs are enabling developers to create innovative applications using the capabilities of 5G networks, opening up new business opportunities for operators. These APIs are transforming networks into programmable platforms, facilitating the creation of new use cases in both industrial and consumer applications.

5G and its impact on the business market

The combination of 5G, AI, and edge computing is redefining how businesses operate. Nokia's 5G cloud edge solutions enable companies to leverage low-latency computing and local data processing to improve efficiency and security. In sectors such as manufacturing, automotive, and mining, Nokia's 5G solutions are driving digital transformation and improving productivity through faster, more reliable connectivity.

These solutions are already having an impact. In France, Orange and Schneider Electric deployed the first 5G network with slicing in an industrial environment. This helped Schneider Electric achieve greater manufacturing efficiency by securely integrating robot control, video analytics, and augmented reality over 5G. In Finland, Telia and Sandvik successfully combined 5G slicing and edge computing in a mining environment to contribute to the development of digital mining technologies that improve safety, efficiency, and productivity.

Innovation in the business model

One way operators can monetize their 5G networks is through network APIs. These allow operators to offer open platforms for third-party software developers to create new applications that leverage 5G capabilities. This creates an ecosystem of partners with a shared interest in increasing 5G adoption. When developers bring new applications to market that harness the power of 5G to address user needs, everyone benefits.

A prime example of this is the media and entertainment sector. Operators like Elisa are using Nokia's network APIs to optimize real-time video streaming, reducing network congestion and improving the user experience, especially during live events such as sports broadcasts.

Seizing the opportunity of AI

The explosive growth in the use of AI applications will have a dramatic impact on network demand. In particular, upstream traffic will increase substantially, representing a significant monetization opportunity for operators. AI's reliance on data collection creates unpredictable data flows and near real-time demands that require high-bandwidth, low-latency upstream connections. By strategically investing in network upgrades and optimization techniques, operators can offer premium connectivity services tailored to the specific demands of AI workloads.

Nokia, with its advanced 5G network infrastructure, helps operators optimize network performance by using AI within the radio access network (RAN). This technology enables real-time network optimization, improving both performance and efficiency.

Change on the horizon

With the maturation of 5G and the move towards autonomous networks, operators are strategically positioned to leverage its potential. Nokia is helping operators address monetization challenges by offering innovative tools that enable them to maximize the value of their investments and pave the way for a prosperous future. With the right tools at their disposal, operators are uniquely positioned to demonstrate the value of 5G, ushering in a new era of growth and innovation for the industry.