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With CSPs failing to invest enough time and resources in the SMB market, it is discounting an estimated $ 433 billion worth of 5G revenue. This is a significant missed opportunity for B2B 5G growth in 2021 and beyond

Amsterdam – February 16, 2021 – BearingPoint // Beyond today, in partnership with Omdia, released a report highlighting the potential of small and medium-sized enterprises (SMBs) as the primary source of future 5G revenue for communications service providers (CSPs). The study commissioned by BearingPoint // Beyond and conducted by Omdia shows that despite SMBs representing 99% of the world’s businesses, the market segment is a market for SMB services valued at $ 433 billion by 2025 – with the majority still huge and untapped by CSPs who concentrate 70% of their resources on the 1% corporate market. Despite this discovery, not enough CSPs are recognizing SMEs as the main source of B2B revenue, especially with 5G. Still, SMBs, many of whom already see value in 5G, see CSPs as their trusted 5G partner, with 42% giving them priority in executing their 5G strategies.

SME Value Proposition

Currently, CSPs are identifying large multinational companies as the segment that will drive sales with 5G. However, the large companies surveyed do not consider CSPs to be their primary 5G provider. In fact, the report finds that 72% of companies prefer to work with a service provider who is not a CSP. The results show that 31% of large multinationals choose cloud service providers to implement their 5G strategies, and 34% even prefer a DIY approach.

“CSPs are still trying to tackle 5G the same way they do 4G, with a clear focus on consumers and businesses. However, 5G opens up new opportunities for CSPs, and one of them is the SMB segment. Digitization and COVID-19 have changed the needs of SMBs and their awareness of the impact that new technologies like 5G, IoT and AI can have on their business to increase productivity, efficiency and increase sales. Our previous research has shown that an average of 73% of global SMBs consider 5G important to their business. It is clear, however, that they are not looking for 5G technology, but that SMBs understand that 5G is part of a larger technology solution that they need. In fact, 93% of SMBs said it is more important for CSPs to work with an ecosystem of partners to develop solutions that better meet their needs than simply delivering 5G services, ”said Angus Ward, CEO of BearingPoint // Beyond.

The report stresses that CSPs should not miss the opportunity to help SMEs achieve their 5G ambitions as SMEs digitized their business amid the profound transformation effects of COVID-19. CSPs are encouraged to consider the business needs of SMBs and assess how 5G can improve productivity and efficiency, or enable them to grow their business. Today, most 5G offerings for SMBs are “Consumer Up” offers for consumers. The real value of 5G to this lucrative market lies in creating partner ecosystems that will help them achieve meaningful strategic changes to sell more services and reach larger audiences.

“We are looking for a new type of SME who is looking for a partner who coordinates comprehensive partner ecosystems in order to jointly develop solutions that offer them better service. This is a unique opportunity for CSPs, especially given that SMEs see them as strong candidates to fill this role. However, to seize this opportunity, CSPs need to consider the different types of SMEs, their specific needs and the vertical context. This means gradually developing a growing number of solutions with an increasing number of technology partners and vertical specialists. The use of a digital marketplace enables the orchestration of these multi-partner solutions and at the same time simplifies the complexity for the SME user. This marketplace needs to give CSPs the speed and scope to grow from selling a few SMB solutions to selling multiple solutions as more partners and customers come on board, ”continued Ward.

CSPs orchestrating the right partner ecosystems seem to be the way to go, as 5G alone won’t be the ultimate differentiator. Rather, the ability of these CSPs to create a more complex value proposition across vertical industries will be critical in today’s competitive landscape.

“SMBs are aware of the benefits 5G can bring to their business and already consider CSPs to be their trusted 5G partners. It is therefore important that CSPs enable 5G to analyze the business context and industry solutions of SMBs with results-based value propositions in order to take advantage of this customer base. In some cases, global CSPs have launched programs that take the opportunity for SMEs. Vodafone Spain offers a comprehensive value proposition that provides SMBs with compelling tools for mobile productivity. SK Telecom is working with the Korea Smart Factory Data Association and software developer BISTel to offer manufacturing SMEs a 5G-based big data analytics service. This type of collaborative approach shows how CSPs can connect 5G capabilities and other resources with ecosystem actors to deliver deep value to SMEs, ”said Camille Mendler, Chief Analyst, Enterprise Services, Service Provider and Communications at Omdia.

Read the full “5G For SMB: What Does It Mean For CSPs?” Report, please visit this website: https://www.bearingpointbeyond.com/de/industries/5g/5g-industries.

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About BearingPoint // Beyond
BearingPoint // Beyond is a rapidly growing SaaS-based provider of BSS and digital platform solutions that helps companies reinvent their business model and increase their sales by leveraging digital platforms and partner ecosystems.

Our digital platform solutions are designed to help companies quickly experiment, launch and monetize new offers with minimal risk and minimal costs. Build connections between technologies and partners so they can work with an ecosystem of partners, innovate together, and expand their reach while leveraging new technologies like cloud, IoT AI, 5G, and more This brings companies closer to their customers and contributes to greater efficiency and automation in order to become more agile in competition.

BearingPoint // Beyond is owned by BearingPoint.

About BearingPoint
BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in three business areas: The first area covers the consulting business and clearly focuses on five key areas in order to drive growth in all regions. The second unit offers IP-controlled managed services beyond SaaS and offers its customers business-critical services that support their business success. The third unit offers the software for a successful digital transformation and regulatory requirements. It is also designed to explore innovative business models with customers and partners by driving start-up funding and development and leveraging ecosystems.

BearingPoint customers include many of the world’s leading companies and organizations. The company has a global consulting network with more than 10,000 employees and supports customers in over 75 countries in order to achieve measurable and sustainable success.

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Press Contact BearingPoint // Beyond
Stephanie Ross
PR & communication manager
Phone: +44 20 7337 3106
Email: [email protected]