Page 98 - SAMENA Trends - May-June 2023

ARTICLE SAMENA TRENDS

ARTICLE

A Balanced Approach to Monetizing Innovations

Communications service providers (CSPs) play a critical role in the
digital economy as they adopt new technologies and make them
available to a wide audience. They heavily invest in infrastructure
by deploying 5G networks and launching satellite communica-
tions and fixed wireless access (FWA). Accordingly, they provide
next-level communications for people across the world and give
new digital opportunities. For example, STC has invested $1 billion
in MENA HUB, a project designed to improve regional connectivi-
ty and infrastructure to support Saudi Arabia’s rapidly expanding
digital and cloud sector. It gave the locals access to fast, reliable
connections and diverse digital services for social and economic
well-being.

Under these conditions, CSPs should develop an efficient strategy
for monetizing investments and benefiting from the implemented
technologies. It involves achieving a balance between flexibility
and openness to the realization of new ideas and business effi-
ciency.

5G helps move away from the “one network
fits all” idea and maximize the personalization
and differentiation of network services based
on each subscriber’s unique needs. It also
allows CSPs to use any technical network’s

parameter to monetize the service.

Flexibility Arises at the Network Level Sergey Karpov
5G accelerates the development of innovative offerings and con- Chief Commercial Officer
sumption of digital services. According to GSMA Intelligence, 5G Nexign
users are more interested in adding digital services and entertain-
ment content to their mobile contracts compared to 4G users (50%
for 5G users across the nine categories of add-ons compared to
38% for 4G users). At the same time, Analysys Mason’s research
states that 5G connections will increase from 2 billion in 2023 to
nearly 4 billion in 2026. Similarly, 5G revenue is expected to grow
from approximately $400 billion worldwide in 2023 to almost $700
billion by 2026. At this point, it will represent 70% of all wireless
revenue.

98 MAY-JUNE 2023