Explore strategies to monetize 5G technology in Asia Pacific

The region is also at the forefront of adopting various capabilities of 5G technology and implementing strategies to monetize 5G as the technology continues to evolve. The rapid advancement of 5G technology is not only related to improving internet connectivity but also transforming many sectors, including telecommunications, manufacturing, healthcare and entertainment.

The world is entering the 5G era, opening up countless new opportunities for businesses in the Asia-Pacific region. This advanced technology platform promises to deliver super-fast data transmission speeds, low latency and widespread connectivity, facilitating explosive growth in many different industries.

The race to commercialize 5G services continues as 5G networks are being rapidly deployed globally. Experts say that 5G has developed faster than 4G two years since its launch. 5G is considered the foundation for a series of technological innovations such as artificial intelligence (AI), smart cities, self-driving cars and the Internet of Things (IoT).

However, to fully capitalize on the potential of 5G, businesses need to have effective monetization strategies that are relevant to this vibrant and diverse market.

Deploying new 5G services

The study predicts that the telecommunications industry will undergo a significant transformation in 2024. Communications service providers (CSPs) will begin to reap the benefits of investing in 5G technology. This will be driven largely by the emergence of cloud-native 5G technology, which will enable CSPs to rapidly deploy new services and meet diverse business needs.

These technological innovations will enable new revenue streams, especially from business applications. At the same time, they will help reduce total cost of ownership (TCO) and increase speed to market penetration.

Cloud-based core networks will enable telecommunications providers to explore new enterprise use cases, from IoT applications to mission-critical operations. By adopting a cloud-based strategy, service providers can reduce the time and costs associated with deployment, allowing them to bring advanced services to market faster and start generating revenue sooner.

Private 5G networks will also be an essential element in driving 5G monetization. Private 5G networks are expected to become a major revenue source as enterprises look to improve their information technology (IT) and operational technology (OT). These networks provide high-capacity connectivity, along with superior security, reliability, and customizability. Enterprises will increasingly look to telecommunications companies that can provide flexible cloud-based solutions as an alternative to legacy systems that are still constrained by physical hardware.

5G Use Cases for Making Money

South Korea was the first country in the world to deploy 5G commercially in April 2019, and is considered one of the pioneers and fastest adopters of 5G technology. The total number of 5G subscribers in South Korea as of the end of March 2024 reached 33.4 million, accounting for more than 39% of the total number of mobile subscribers in the country.

Telecom companies in South Korea have invested heavily in 5G use cases, especially virtual reality (VR) and augmented reality (AR) applications, to drive 5G technology adoption. For example, mobile carrier SK Telecom’s AR-based entertainment service “Jump AR” allows users to experience exciting AR content and interact with their surroundings using their smartphone cameras.

Many cities in South Korea have also been transformed into smart cities by integrating IoT. 5G connectivity has been established to efficiently monitor urban infrastructure, such as the Bucheon smart city project, which combines 5G technology with IoT devices to efficiently control traffic, save energy, and improve public safety. Telecommunications companies can generate additional revenue streams by providing these advanced services, beyond the usual data packages.

Across the Asia-Pacific region, many companies are leveraging 5G monetization use cases. For example, Telstra, Australia’s largest telecommunications operator, is expanding its 5G monetization capabilities using the MATRIXX platform. MATRIXX is a software platform developed by Amdocs, a leading telecommunications software company. It helps telecommunications operators create new and innovative services and monetize them.

KDDI, one of Japan's largest mobile carriers, has also partnered with the world's leading telecommunications equipment supplier Nokia to power KDDI's 5G network with advanced monetization solutions.

Nokia's standalone architecture-based core network solution plays a key role in KDDI's 5G network deployment. It provides the scalability, flexibility and performance needed to meet the growing demands of 5G users.

In addition, Nokia provides a range of monetization solutions to help KDDI fully exploit the potential of 5G networks, such as cloud-based converged charging, which enables KDDI to quickly and efficiently deliver new 5G services while simplifying pricing and billing management; ensuring 5G signal quality and controlling how users use the 5G network.

The above examples show just a few of the many ways companies in the Asia-Pacific region are getting creative to monetize 5G. As 5G technology continues to evolve, we can expect to see more new and innovative business models emerge.

Make money effectively from 5G network

Effectively monetizing 5G requires taking into account several factors, including timing and addressing synchronization challenges. As the telecommunications industry transitions from 5G deployment to optimization and monetization, companies need to prioritize identifying and resolving timing and synchronization issues quickly and efficiently. This is especially important as customer adoption of 5G increases.

Precise location information is key for many applications, as it is closely related to synchronization, such as in manufacturing, where machines need to follow precise parts to operate efficiently. Seamless synchronization is necessary for certain features to work as expected, in order to fully take advantage of the advanced capabilities of 5G networks.

The Asia-Pacific region plays a key role in driving the advancement of 5G technology, and the strategies deployed by operators in the region to generate revenue have also provided valuable lessons for other operators in the region. In addition, countries in the Asia-Pacific region are actively exploring various opportunities to leverage 5G technology through new use cases.

5G monetization in Asia Pacific is expected to continue to grow as there are still untapped opportunities. Through proactive adaptation and continuous innovation, Asia Pacific is positioned to maintain its connectivity leadership, driving advances in 5G monetization and future 6G deployments.