Businesses Will Spend Big on Digital Transformation: GSMA

Before the launch of early 5G networks, the consensus was that business-to-business (B2B) communications would be a “big opportunity,” Pablo Iacopino, GSMA Intelligence head-research and commercial content, said during a Mobile World Live webcast on Friday. For consumers, 5G adoption has been “very, very fast” compared to the roll-out of 3G and 4G, he said. When carriers think about providing business customers with 5G, they consider connectivity a first step only, he said. “Really, the incremental value comes from services beyond connectivity,” including cloud and edge services and serving IoT networks, he said. Based on a GSMA survey, businesses say they are willing to spend about 9% of their revenue on average globally on digital transformation, he said. That’s “a big number, and it means there are opportunities for many players to catch a piece of this 9%,” he said: “Enterprises are willing to spend on 5G in order to drive digital transformation.” Different businesses have varying needs and providers must “customize” what they offer. After a slow start, there’s growing momentum behind 5G standalone, “which is the real 5G.” In most places, said David Markland, chief product officer at Inseego, 5G began on 4G core networks, “reusing 4G spectrum with a little bit of efficiency gain, and then it built from there, having more and more spectrum.” Inseego provides wireless gear. A lot of people had a 5G icon on their phones years ago but weren’t seeing changes over 4G, and “personal experience, some days it was worse,” Markland said. That has changed as major carriers deploy “a lot more spectrum” on their networks. “We have 10 times more bandwidth now than … back in the 4G era.”