THE EUROPEAN 5G CONFERENCE 2022

25-26 JANUARY 2022 – FORUM EUROPE VIRTUAL EVENT

analysysmason.com
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Contents

Enhancing operator business services with 5G p 3

Analysys Mason’s predictions for consumer telecoms services in 2022 p 4

Global leaders in TMT management consulting p 6

Analysys Mason offers 5G advice to clients in a range of areas p 7

Analysys Mason assists clients around the world with economic,

market and technical advice on 5G p 8

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> THE EUROPEAN 5G CONFERENCE 2022

Enhancing operator business services with 5G

Tom Rebbeck, Partner

Operators will be able to add 5G-related features to the
connectivity-related products that they can sell, increasing
the revenue opportunity and strengthening their position in
the value chain. Operators with the relevant assets will also
link 5G features into other cloud, security, UC and fixed
propositions, potentially creating a unique bundle of
products. The most ambitious operators will use the extra
features of 5G to enhance propositions in markets such as
drones and healthcare.

A potential weakness in the argument for many 5G SA

services is that they remain theoretical. However, many of
the features being developed in 5G SA are already available
Operators need new sources of revenue growth in the
in the private networks market, which has seen strong
business market. 5G, especially 5G standalone (SA),
growth. Over 50 operators are also exploring the opportunity
provides opportunities for operators to generate new
presented by edge computing, another area with close links
revenue from features such as ultra-reliable connections,
to 5G SA networks. Interest in private 5G networks and edge
low latency, massive connectivity and integration with edge
computing is evidence that the case for enhanced 5G
services.
networks is not purely theoretical.
These services will be sold and delivered in different ways
This report explores how telecoms operators should
from traditional services (for example, they can be
prepare themselves to benefit from the 5G opportunity in the
consumed on-demand and controlled via APIs). Customers
business market. It was originally published by Amdocs. We
will value the features enabled by 5G in different ways from
have written a report exploring these issues in more detail
traditional services. Operators will need to experiment with
and discussing how telecoms operators should prepare
alternative pricing models and package features in new
themselves to benefit from the 5G opportunity in the
ways. For example, services such as unified
business market. You can read the full report here: https://
communications could be sold with guaranteed service
www.analysysmason.com/research/content/perspectives/
levels. The new features, delivery and pricing models will
enhancing-business-services-perspective-ren01-rdmz0-
require mobile operators to change their thinking and to
rdme0-rma17/
invest in new systems.

Questions?
Please feel free to contact Tom Rebbeck, Partner
at [email protected]

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> THE EUROPEAN 5G CONFERENCE 2022

Analysys Mason’s predictions for consumer

telecoms services in 2022
Stephen Sale, Research Director

The metaverse will not be a ‘killer’ app for 5G but it will

represent a leap forward in bringing AR and VR services to
the mass market

The hype around the metaverse will continue in 2022 with

various visions of social/gaming/entertainment/commerce
competing for attention. A major question for telecoms
operators is the degree to which AR and mobility will
feature, rather than the VR-heavy vision presented by Meta
(formerly known as Facebook). Some operators will be
considering potential roles as enablers but need to qualify
the opportunity with potential partners in, for example, the
gaming world.
Consumer telecoms services have had a mixed year in 2021.
Fixed broadband services (particularly where customers Telecoms operators will add gaming to their ‘super-
have upgraded to FTTP connections) have provided revenue aggregator’ strategies
growth for many operators, and mobile service revenue has
Operators will use super-aggregation strategies (that is,
partially recovered from the challenges of 2020. The return
bundling a range of third-party content) to capture some of
of roaming revenue continues to be eagerly anticipated as a
the USD180 billion digital gaming industry in 2022. Games
potential source of growth, albeit one with a limited lifespan.
publishers’ and operators’ needs are aligning around billing
Online entertainment services have continued to benefit
for gaming services following the fall-out from the Apple/
from post-pandemic behaviour although the digital
Epic Games lawsuit – the conditions are right for games
advertising market is undergoing upheaval following
developers and platforms to become more open to using
changes to cookie policies. The background to the year,
operators for billing and aggregation.
aside from the lingering effects of COVID-19, has been the
rise of 5G as a mass-market proposition. We expect this to Operators will use their renewed focus on environmental,
continue into 2022, with more scrutiny of 5G use cases and social and governance (ESG) strategies to tap into
business models in the wake of hype about the ‘metaverse’. consumer interest in green initiatives
Our predictions are as follows.
The world’s largest telecoms operators, most recently BT,
Chipset shortages will affect smartphone sales in 2022, have reinforced their commitments to reaching net zero
but we still expect annual sales to increase by 9% carbon emissions within defined timeframes. Consumers
year-on-year care: according to Analysys Mason’s consumer survey, 46%
considered operator sustainability goals to be ‘important’ or
Smartphone shipments rebounded in 2021 after a large
‘essential’ in their buying decision in 2021. Operators will
decline in 2020 but not as significantly as originally forecast
improve their consumer-facing marketing collateral in 2022
due to chipset shortages in the latter half of the year. These
by highlighting the work that they have already undertaken
shortages will persist in the first half of 2022, but there will
to transform their businesses.
be a recovery in the second half, coinciding with the
seasonal increase in demand at the end of the year. Budget Broadband operators will shift strategies from the smart
5G handsets will be particularly affected by the chip home to the connected home, supported by the opening up
shortages because increasing prices for chips will drive up of home router capabilities
retail handset prices. We now expect 105 million fewer 5G
Operators’ smart home automation services and smart
handsets to be sold during 2021 and 2022 than previously
speaker offers have struggled in the face of competition
forecast (in 1H 2021, before the supply chain problems).
from tech giants, but the connected home is a promising

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area for operators. Early trailblazers of the ‘customer Telehealth is emerging as a major area of interest to
premises equipment (CPE) as app store’ approach, such as telecoms operators
Comcast, show that operators have an opportunity in this
New services will be launched in 2022, many bundled with
segment. Operators will launch value-added services such
core telecoms packages. The COVID-19 pandemic boosted
as connected home cyber security and Wi-Fi motion
the emergence of telehealth services and many telecoms
detection with the objective of boosting subscriber numbers
operators joined other players in launching B2C services.
and ARPU.
Some telehealth services will be standalone, but most will
Fixed broadband subscriber numbers in many emerging be part of platforms that combine telehealth with health
markets will increase significantly over the next year e-commerce, health data management, wellness or other
related service areas. Operators will experiment in 2022
The evidence from several emerging markets shows that
with bundling telehealth subscriptions with telecoms
households are prepared to pay up to around 5% of their
service packages.
income on a fixed broadband connection. The case for fibre
deployments in emerging markets is strong given that FTTP
roll-out costs are low, which will help to drive growth in
subscriber numbers.

Fixed–mobile convergence (FMC) is becoming a major

trend in the USA, and take-up of FMC services will more
than double in 2022 to account for at least 15% of
broadband households

US cablecos are well-placed to grow their MVNO subscriber

bases and over time will supplement their MVNO
agreements with their own cellular network roll-outs.
MNOs’ interest in fixed-wireless access and the growing
availability of wholesale FTTP offers will also spur moves to
offer fixed–mobile bundles. Integrated incumbents will
respond to this new threat with more fixed–mobile bundles
of their own, making FMC a major dynamic in the US
market.

Operators will look to increased network convergence in

2022 to support cost reductions and revenue growth
opportunities

MNOs in emerging markets will seek to capitalise on

fixed–mobile network convergence opportunities by using
their existing cellular infrastructure (sites, backhaul) as the
basis for FTTP roll-outs. Early mover operators worldwide
will also begin to commercially deploy converged packet
core architecture as they seek to gain the associated cost
and revenue-related benefits.

Questions?
Please feel free to contact Stephen Sale, Research Director
at [email protected]

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> THE EUROPEAN 5G CONFERENCE 2022

Global leaders in TMT management

consulting

Analysys Mason is the world’s leading management consultancy focused on telecoms, media and
technology (TMT). We give clarity and confidence in answering our clients’ biggest commercial
questions: What strategy will best enhance value? What implementation plan will be most successful?
What is the optimal positioning for five years’ time?

We bring together commercial and technical expertise across four interconnected consultancy practices strengthened by
globally respected research:

• Strategy • Subscription research

We cover all aspects of strategy development and review We evaluate the key topics driving the TMT industry and
based on a highly analytical and data-driven approach. quantify the impact on operators and vendors worldwide.
Our propositions include corporate growth strategy Clients rely on our research as an essential resource for
(organic and inorganic), business unit strategy (including strategic planning, investment and benchmarking.
consumer and enterprise products), and infrastructure
Global reach, local insight
strategy (including capex optimisation through data
analytics). Our advice is rooted in deep domain knowledge that
combines global reach and local insight into markets to help
• Transaction support
our clients achieve their goals. Our service offerings are
We provide robust commercial and technical due diligence
fully integrated across all five key strengths. This allows us
support for TMT debt and equity financing, M&A and IPO
to make sense of a complex TMT landscape and create
processes. We support the full M&A cycle from
valuable insights in ways that cannot be matched by
opportunity scouting through to post-merger integration.
narrower domain specialists or generalist consultants that
• Transformation lack our depth of experience.
We help structure and operate major IT, digital and
Working with private- and public-sector clients in 140+
business transformation programmes. We also have deep
countries, we are committed to advancing TMT’s role as a
expertise around what it takes to avoid the pitfalls of and
critical enabler of global economic, environmental and
maximise the success of complex change programmes.
social transformation – and to contributing to a world where
• Regulation and policy technology delivers for all.
We play a leading role in helping to formulate and
examine policy and regulation related to TMT. We support
governments, regulators and the whole telecoms sector
in a rapidly changing world increasingly shaped by
digitalisation.

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> THE EUROPEAN 5G CONFERENCE 2022

Analysys Mason offers 5G advice to clients in a

range of areas:

5G strategy 5G business opportunities

> Strategic planning / growth strategy > Services, use cases and markets
> Infrastructure requirements > Value creation (growing demand for existing services/
widening user base for new services)
> Network deployment scenarios / roll-out planning
> Partnerships, eco-systems and channels to market

Review of operations / digital transformation Economic impact / cost–benefit assessment

> Digital transformation strategy / implementation > Economic benefit assessments
> Benchmarks and best practice > Opportunity cost analysis (e.g. change of use of spectrum)
> Product / network / technology convergence > Cost–benefit calculation
> Network virtualisation

Spectrum needs, valuation and licence acquisition Regulatory and policy support
> Forecasting of spectrum demand > Analysis of impacts of consultations; development of
economic / technical arguments for responses; drafting
> Assessment of alternative uses of spectrum and editing of consultation responses
> Spectrum valuation / auction support > Market reviews and policy (e.g. net neutrality, universal
service obligation)

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> THE EUROPEAN 5G CONFERENCE 2022

Analysys Mason assists clients around the world

with economic, market and technical advice on 5G

Over the last 3 years we have carried out

75 5G-related projects
in 23 countries for 40 organisations

Enabling clients around the world to make

the most of their opportunities

Spectrum needs, Regulatory

valuation and and policy
licence acquisition support

5G business Economic impact /

opportunities cost–benefit
Review of assessment
operations /
digital
transformation
5G strategy

analysysmason.com
Global leaders in TMT management consulting

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