According to analysts, the widespread roll-out of 5G networks is going faster than first anticipated. In fact, the speed of roll-out is prompting industry, commerce and government to quickly rethink their priorities to ensure they continue to meet customer expectation, stay relevant and make the most of the US$1.5 trillion revenue opportunities on offer within the next decade.
Besides telcos, the big winners from 5G's roll-out and related new revenue streams are likely to be financial services, retail, manufacturing, energy, utilities and civil infrastructure, healthcare, transport and automotive, entertainment and agriculture. But plotting the path from initial implementation to widespread commercial adoption of connected devices, ‘smart’ applications and emerging use cases, could be a tricky one and hinges on up-front analytics and well-considered optimisation. A host of factors need to be evaluated first, including competition, scope and scale effects, as well as selective regulatory challenges, risks and expected returns.
Scaling the Opportunity for Financial Services
Advances in cyber-security alongside fast, reliable and secure payment channels are expected to drive the US$37 billion potential opportunity financial services could monetise by 2030. Expectations around the speed in clearing and settling of global transactions will only increase, while 5G-enabled cyber-security will be the cement that helps underpin and safeguard trust around faster digitisation.
Speed of response to risk and suspicious activity are already critical drivers towards AI-powered tech investments and fraud detection systems that offer responses in real time. At FICO we're constantly helping our strategic partners to make faster, smarter, more personalised decisions, to help improve their customers' experience.
Can Ecommerce and Retail Realise Consumers' US$28 Billion Revenue Potential?
The sector's critical 5G value drivers are likely to include a mix of ‘reality’ – be it augmented or virtual - applications, faster and smarter delivery services. It's a trend that was already well underway long before the pandemic fundamentally changed the way many of us choose to shop.
Right now, only the largest retailers may have the means to implement widescale AR and VR projects, but those that do will quickly win a competitive advantage. At the same time, greater offer personalisation, continual customer analysis, asset tracking and social shopper metrics are all driving retail's back-office digital programmes. The evolution of so-called 'hyperpersonalistaion' combined with even shorter delivery options also offer a mass of new opportunities. At FICO, we're working across sectors to optimise the customer journey to maximise growth, retention and service.
Infrastructure, Transport and City Centre Planning
Across other sectors, the scale of 5G’s revenue opportunities is only going to continue grow as its impact on all aspects of our lives continues. Every single interaction and data point provides insight and greater visibility on societal trends to planners and analysts on how so-called superfast ‘Smart Cities’ evolve. This includes everything from ensuring the optimal frequency of commuter trains to staggered city centre operating hours, or the best locations for electric vehicle charging points. It’s fair to say, every piece of data is another jigsaw piece to leverage insight from.
We’re already helping our commercial partners align their key strengths with emerging market expectations and helping them to expand their digital service enablement. To find out how we can help, simply click here.