Amid extensive 5G network deployment, European telecom operators are anticipated to recalibrate their strategies, focusing on returns on investment and 5G monetization. Strategies for 5G Monetization

Forecasts from the GSMA report suggest a gradual downturn in capital expenditure (capex) levels as attention shifts towards optimizing existing infrastructure and extending 5G coverage, particularly in rural areas.
After substantial investments in 5G infrastructure, operators are redirecting efforts toward generating revenue through innovative service offerings. Bundling non-connectivity services with mobile subscriptions emerges as a key avenue, with GSMA Intelligence revealing heightened interest among 5G users in integrating content, services, and devices into their contracts, particularly favoring video and music streaming.

Euro Mobile Operator Revenue to Hit €162 Billion by 2030 Strategies for 5G Monetization

Capex of mobile operators in Europe is expected to reach €198 billion during 2023–2030, the report said.

European operators are exploring diverse strategies to drive 5G monetization. Tariff structures moving away from volume-based pricing have gained traction, exemplified by Finland’s Elisa offering differentiated 5G plans based on mobile speed, resulting in a notable increase in average billing per user upon upgrading to 5G.

Additionally, the potential for 5G Fixed Wireless Access (FWA) is being recognized as an incremental revenue opportunity. Notably, countries with substantial legacy cable and xDSL connections, like Austria and Italy, have witnessed early successes in 5G FWA, presenting prospects for operators to meet burgeoning data demands.
Despite trailing in 5G Standalone (5G SA) deployments compared to other regions, recent initiatives show an upswing in activity among European operators. The promotion of upgraded networks using new branding signifies an attempt to differentiate offerings and underscore network quality, critical in a competitive landscape.

The advent of 5G SA introduces capabilities crucial for monetizing 5G investments, particularly improved support for network slicing. Successful trials incorporating slicing, such as major event broadcasting and cloud gaming, underscore its potential in diversifying services and enhancing user experiences.

A pivotal transformation in telecom networks is underway to align with evolving connectivity needs and accelerate data-driven technologies like AI and Web 3.0. Network softwarization, virtualization, and cloud-native architectures are being pursued along with infrastructure investments to accommodate these evolving demands.
Operators are investing heavily in network automation, leveraging AI and machine learning, to offer tailored connectivity solutions and added services, including edge cloud capabilities, through standardized interfaces, evolving towards a network-as-a-service (NaaS) business model. This NaaS environment aims to seamlessly integrate connectivity, IoT, and cloud services through APIs, fostering innovation across various sectors.

The shift from selling connectivity to orchestrating responsive digital infrastructure for developers signifies the evolving operator business model. As digital services demand more sophisticated networks, the focus is on empowering developers with enhanced capabilities to interact with these networks, heralding the next phase of innovation in telecommunications.