For many years mobile operators have complained that their ability to make money has been curtailed. This has come from a combination of factors, chiefly falling revenues from phone, text and data services, and, conversely, the need to spend billions upgrading networks.
As such, the rollout of new services, such as 4G around the UK over recent years, has been seen as a chance for operators to finally start recouping some of these losses by charging consumers more for data.
However, there is one issue with this. Consumers still don't spend huge amounts of money. Well, not the amounts operators need to start turning over serious profits.
But, as businesses become increasingly mobile, there is a silver lining on the horizon in the form of 5G, which will take capacity, speed and coverage and improve them all massively. This could open a whole new possibility for telecoms operators to sell enhanced mobile services to businesses as a key part of their IT and communications needs.
This idea was espoused by Mischa Dohler, the chair professor in Wireless Communications at King's College London, while speaking at the 5G Huddle event in London on Monday, attended by V3.
His argument was that because the speeds and capacity of 5G are likely to be so far beyond the needs of consumers, many operators will gain more financial joy by focusing on B2B industries, such as oil and gas, construction, nuclear energy or transportation.
“The good news is that these sectors have lots of cash,” he added. "They all complain about a shortage of cash but really they have huge revenues and margins."
Dohler said the downside of pushing mobile services to businesses would be the high cost of entry to a new market, but he said that any incumbent or new players who do become established should be able to make good money.
"With a high entry barrier comes a high exit barrier, so unless you screw it up you shouldn't make a loss on this [5G]."
This will be music to the ears of telecoms operators, if it comes true.
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