The rollout of 5G is accelerating: nearly one third of the UK population can now access the new network. Telecommunications companies face a pivotal moment as they decide how to proceed, weighing multiple strategic options for their digital futures.
Today’s communications service providers (CSPs) have a significant opportunity. By embracing initiatives that leverage 5G’s hyper-connectivity, they can rethink and modernize their infrastructures to deliver more value. Achieving this requires CSPs to put trust at the center of data-driven services, deliver seamless and frictionless information flows, and improve experiences for both business and consumer customers.
To capitalise on 5G, telcos must rapidly mature their digital capabilities and prioritise the development of new ecosystem-driven solutions supported by the network’s capabilities.
A new horizon, building maturity
Even before the COVID-19 pandemic, CSPs stood at an inflection point. Continuing on legacy paths meant focusing mainly on delivering faster data and seeking differentiation through entertainment or advertising. As a result, different providers pursued distinct routes to grow revenue and shape their futures. Now, widespread ecosystem solutions enabled by 5G are becoming essential.
It is questionable whether each provider should try to build all the necessary infrastructure independently—constructing their own dedicated 5G towers and networks in every region. A more sensible approach is openness: adopting collaborative business and operating models, sharing technology and network assets, and participating as integrators within broader ecosystems of virtual services and solutions.
A digital maturity model for telcos
Industry conversations often focus heavily on physical infrastructure—the server farms that power the cloud, the fibre-optic backbones, and the promise of 5G. While these elements are important, they are only the starting point: hardware alone does not create value without the software, systems, and partnerships that enable intelligent, connected services.
Telcos can achieve layered ecosystem maturity by acting now. Success depends on software across every level, promoting openness among providers and enabling integration. To get there, CSPs should pursue an information systems maturity journey that spans five key layers:
- Infrastructure layer: virtualise core networks, enable cloud communications, support IoT connectivity, capture data at the edge, and optimise for 5G performance.
- Application layer: deliver modular, nimble digital operating systems that partners and developers can use, extend, and innovate upon.
- Orchestration layer: provide interfaces for third-party providers via APIs, gateways, and connectivity tools to assemble tailored product offerings and end-to-end solutions.
- Product or business layer: empower CSPs and database service providers to create industry-specific and consumer-focused solutions that address niche needs and lifestyle demands.
- Experience layer: design evolving, autonomous experiences for enterprises and consumers—examples include connected IoT devices, autonomous vehicles, and immersive augmented or virtual reality applications that educate, guide, and enhance daily life.
Across the globe, CSPs need guidance to progress through these maturity layers efficiently. They require strategies to monetise current and future investments in infrastructure, applications, and product development, and to fully exploit capabilities like 5G, connected devices, and the Internet of Things. Opportunities include direct-to-consumer virtual solutions—such as personalised healthcare—and industry-focused offerings like smart manufacturing and Industry 4.0 applications.
Fortunately, the expertise and support to accelerate this transition exist. Collaboration among providers and shared learning will speed adoption and create more effective outcomes for the whole industry.
Beyond 5G: An evolving ecosystem
5G represents the next phase in a broader digital transformation of core business processes and customer experiences. The pandemic has underscored the importance of virtual and digital business models, and the shift toward digital operations continues to gather pace.
By leveraging industry knowledge and strong engineering capabilities, telecommunications providers can establish robust positions in this virtual landscape and unlock significant value for enterprises and consumers alike.
(Photo by Giorgio Trovato on Unsplash)