Digital ConsumerMobile Operators and Networks
Revisiting 5G monetisation: upping the experience
Globally, operator revenue growth is in low, single digits, with pressure on ARPU unabating from competition, a lack of sustained pricing premiums, and an enterprise opportunity that remains nascent. This environment has put increasing pressure on cashflow and, in turn, network investment budgets. While cost cutting can help, it can only go so far. The fundamental challenge is to renew revenue growth.
Ultimately, monetisation in the 5G era will be more about product marketing and partnerships. The primary challenge is driving a higher price premium for tariffs linked to content or speed, with consumers being willing to pay and sustain this level of payment over time. This comes down to people feeling 5G delivers something new or better than what is possible using an existing 4G service. This research shows that FWA and speed-linked tariffs are the best means of doing that, with content-linked offers a more market-specific play.