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Massive enterprise would not belief telcos with 5G, says new analysis

Source: Omdia

How much the world’s small and medium-sized enterprises (SMEs) want to spend on 5G services and telecommunications operators see an opportunity of 433 billion US dollars by 2025. Except this is not the case as operators continue to be fixated on the megalodons of business world, which make up only 1% of all businesses.

It’s the latest joint study by Omdia, a sister company of Light Reading, and BearingPoint // Beyond, a management consultancy, and it’s another tough verdict on telecommunications strategy. The operators in the 2020s just don’t seem to be taking a break. They are caught in the purgatory of digital transformation, fetch gigabytes for US public clouds or throw billions on a new technology that will enrich everyone else.

The most recent criticism is that operators are simply ignoring a very large part of the 5G business. Their rationale, according to research, seems to be that the 1% are the big donors. Getting a large order from a pharmaceutical or automotive giant probably sounds more lucrative than fishing for Tiddler in the SME pond.

5G sense and sensuality

Unfortunately the feeling is not mutual. While big business operators get excited, business types just aren’t interested. A survey conducted by Omdia found that large companies “don’t use CSPs” [communications service providers] on their 5G priority list. “And the frustrating thing is that the SMEs that ignore the operators are craving for CSP companies,” says Omdia.

It’s the classic story of a love square in which Jack introduces himself to Jill, even though she only has eyes for Tom, who prefers to be left out of the whole affair. All it takes is some Jane Austen sort of matchmaker to get everyone on the right track? A role that analysts and consultants would probably like to play.

Source: Omdia

Unsurprisingly, BearingPoint // Beyond is right there providing some advice to operators on the right type of suggestions. The overall message from Angus Ward, CEO of BearingPoint // Beyond, is: Silence about 5G ?? important though it is ?? and focus on marketing “a broader technology solution” that businesses need.

There is good news and bad news for service providers here. Many will be pleased that companies willing to spend a bit of money still value telecommunications as a partner. The concern is that some deep-pocketed industry giants would rather go it alone. DIY is much easier than it used to be, thanks to regulators who have reserved frequencies for organizations outside of telecommunications.

Would you like to learn more about 5G? Check out our special 5G content channel here on Light Reading.

That others prefer the public clouds as their 5G partner is also alarming. Public clouds don’t operate 5G networks, but are they increasingly visible in the 5G “edge”? the expansion of cloud computing services into the cellular network? through connections with operators. It is an insult to the telecommunications industry to trust Amazon more than AT&T to implement a 5G strategy. After all, you wouldn’t ask your interior designer to fix the toilet unless the plumber was useless.

The connection between Omdia and BearingPoint has already shown convincing studies on the 5G possibility. Last May, an “Innovation Tracker” they developed showed that most 5G projects in the corporate sector were not managed by service providers. Nine months later, the operators still seem to be fiddling around.

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?? Iain Morris, International Editor, Light Reading