5G network launches have been far more concentrated compared to earlier generations of cellular technology. A consensus has developed among leading telecom players that the B2B market is a major growth opportunity of 5G.
Both operators and vendors need to evolve their role to adapt their offers and processes for the 5G B2B market. Network platforms and the mobile ecosystem should evolve to meet the specific requirements for B2B and industrial customers. They have an opportunity to build the hub platform that connects communications service providers (CSPs) and diverse connectivity options with module suppliers, industrial device vendors, hardware providers, and industrial software applications. As the ecosystem evolves, it can create opportunities for multiple vendors’ long-term growth in ways that will benefit the entire telecom industry value chain.
We expect to see leading vendors become more active in developing the 5G B2B business. They have an opportunity to evolve their role to take more responsibility and add increased value in the 5G B2B ecosystem. Chinese vendors and especially Huawei, could lead the evolution process in the next 1-2 years, thanks to the huge and dynamic Chinese market. In the mid/long term, network equipment vendors need to evolve to offer an integrated platform for 5G industrial customers and telecom operators. Every vendor’s competitive position will be influenced by the breadth and strength of its partnership ecosystem.