Nokia has presented new research showing that communication service providers (CSPs) are behind in having the right software solutions to help them monetise their 5G networks with new services and network management tools.
The report said that CSPs and enterprises need to modernise their legacy monetisation systems with new service offerings and application development ecosystems to generate returns beyond the traditional data plans of the 3G/4G era. New monetisation systems that enable operators to deliver new services, like slicing, faster and at scale, are a critical enabler of helping CSPs and enterprises realise faster returns on their network investments.
But the Nokia-commissioned global survey of 100 CSPs worldwide found that only 11 percent of respondents have sufficient Business Support Systems (BSS) in place to meet the needs of 5G-enabled business models. BSS is a critical patchwork of business applications, including monetisation tools, that help CSPs manage their operations and supply chains through functions like billing and charging and deliver a solid customer experience.
An overwhelming number of survey respondents, at 98 pe cent, indicated they would have to alter their BSS in the coming years to put proper, up-to-date monetisation tools in place.
The survey found that nearly 70 percent of CSPs are now considering deploying cloud-based monetisation solutions. In addition, two-thirds of respondents indicated they believe that real-time charging is essential for 5G monetisation, in part because of its ability to help CSPs respond quickly to customer demands.
The report found that cloud-native software architecture was vital to achieving a 5G-ready monetisation system, with many benefits that include limitless scalability and an ideal platform for AI, analytics, and edge computing capabilities for ultra-low latency use cases.
Analysys Mason analyst John Abraham said: “Most Service Providers are ill-prepared to engage and monetise emerging 5G-enabled use cases effectively and need to transform their BSS urgently. With Service Providers looking to get that ROI on 5G, now is the time for them to invest in flexible monetisation systems, especially as 5G brings the importance of real-time charging capabilities to the forefront. Given Nokia’s portfolio and expertise, they are well placed to support CSPs on this journey.”
Nokia Senior Vice President, Business Applications Hamdy Farid said: “To unlock 5G revenues and move beyond the traditional data plan model, a major shift among CSPs is needed toward adaptable monetisation systems that use cloud-native, scalable and flexible infrastructure and open APIs for easy integration and deployment; and I think this survey highlights the work still to be done.”
