Why telecom carriers need to accelerate their 5G spending paid Oracle
Yet it’s unclear how quickly telecom carriers will be able to recoup their 5G network build-out investments, and they’ll need to look to business-oriented services as consumers’ data subscription prices continue to fall amid pitched competition. US telecom carriers may spendGlobally, mobile operators are expected tobetween 2018 and 2020, according to the GSMA trade association. 5G technologies are expected to contribute $2.
The industry’s challenge now is to avoid what happened with the prior 4G buildout, especially in Europe, where internet companies benefitted while the carriers were forced to cut prices. Deloitte wrote in athat “while 5G will certainly enable new use cases that create entirely new products and services…how much of that new value will flow to the carriers who enabled it is less certain.”
One reason is that, in general, carriers have been slow to offer new services to customers in healthcare, banking, and other sectors, sometimes taking 18 months to two years to finish projects, Oracle’s Rutherford said. “Web-scale companies are very fast,” he said. “That’s the shift operators need to make globally.”
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