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Making the business case for 5G

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5G promises to change many aspects of the way people live and work, and service providers and enterprises want to understand how it will meet their specific business needs.
Nokia is leveraging its business modeling and 5G Acceleration Services capabilities to remove the guesswork from operators’ 5G network evolution plans. New Nokia studies have revealed the benefits of deploying 5G and identify those services with the potential to offer the greatest return on investment.
Using modelling that reflects customer-specific needs, Nokia’s 5G Acceleration Services can help operators and enterprises identify how the move to 5G will enable them to deliver new services that transform the customer experience and create new revenue streams.
Analysis of how 5G will perform in real networks has found that it can:
* Increase capacity by 40 times compared to 4G, making it the only commercially viable technology for the delivery of a true immersive VR video experience to massive numbers of subscribers in high-attendance venues;
* Substantially reduce the cost-per-device in a smart city deployment handling millions of connected devices, including IoT sensors; and
* Deliver the “99,999% reliability” and low-latency at-scale required in an Industry 4.0 environment.
The research also shows how operators and enterprises can capitalize on early 5G deployments to drive the best return on investment (ROI). Business cases include:
* “5G to the Home” will break even after four years if the monthly average revenue per user remains above EUR 40;
* 5G events and hotspots, in locations such as stadiums, have a one-year payback period depending on the number of events held at the location, with at least five events per month required to ensure a profitable business case; and
* Operators can achieve tangible early mover advantages in terms of revenue and market share for services such as in-vehicle infotainment.
Joe Madden, principal analyst at Mobile Experts, says: “While market news has recently focused on the announcement of 5G technologies that drive increased network performance, it’s important to discuss how these low latency broadband connections will translate into customer value.
“With the publication of the two new studies and its 5G Acceleration Services, Nokia is showing operators and enterprises how they will be able to benefit from early 5G deployment.”
Harold Graham, head of the 5G business line at Nokia, adds: “In these studies we have delivered key new insight into the benefits and business opportunities enabled by 5G. With our 5G FIRST end-to-end technology platform and 5G Acceleration Services, we have a comprehensive offer that we can leverage to help operators and enterprises understand the real value of 5G in relation to their particular business needs.
“Working closely with our customers we can help them evolve their business cases and provide clear recommendations for investments on their path to 5G.”