5G for Enterprises: Why Mobile Operators Must Rethink Vendor Strategies
If you’re a mobile network operator or someone working at a mobile operator, you’re likely sourcing your network equipment from a small group of vendors based on the same 3GPP standards as other operators. These standards are fantastic for ensuring consistency, network quality, interoperability, and integration. But as a mobile operator, if you source your network from the same small group of dominant vendors as your competitors, where is the differentiation?
How do you convince your customers that even though you’re using the same or very similar network as your competitors, you have a unique selling point? Without that, pricing becomes the only differentiator—a race to the bottom. Bundling solutions is another option, but it’s often predictable, as most operators offer similar portfolios of services. Even for those, they often rely on the same niche of suppliers. Based on my experience, I’ve seen this with solutions like security, IP telephones, unified communications, and more.
A Look Back
In the 2G and early 3G days, the focus was on voice and text services, with service quality being paramount. Networks relied on circuit-switched technology to ensure reliability, leading to vendor discussions driven by tech teams focused on KPIs like CSR and dropped calls.
With the advent of 4G LTE, mobile data took center stage, and even voice and text were delivered over data networks using technologies like VoLTE and Wi-Fi Calling. The rise of mobile data created a huge demand for high-speed broadband. However, mobile networks are shared resources, making it challenging to guarantee consistent quality of service (QoS). To manage this, many operators turned to quality optimization solutions like video compression platforms and CDNs from niche vendors.
The Differentiation Challenge
Operators face a tough challenge in differentiating themselves due to:
- A small group of vendors offering similar products and services globally.
- Vendor discussions still being led by tech teams, with network quality as the main focus.
As mobile networks mature and quality differences become less noticeable, the traditional edge they offered is fading. Operators need to explore new ways to stand out, often shifting focus to value-added services (VAS) and bundled offerings. However, even in these areas, many operators end up with similar vendors, making real differentiation difficult.
The Role of 5G
As a mobile operator, the mobile network is your biggest asset, and that is where you need to differentiate. The key lies in network-based differentiation, not pricing or bundling, because these approaches are simply not sustainable. The good news? Mobile networks are designed to give you the flexibility to stand out. You need to focus on the value chain and define your network requirements in line with your business goals.
5G NR technology, specifically 5G standalone, takes this flexibility to new levels. With a service-based architecture (SBA), 5G networks offer capabilities like network slicing, enabling operators to target specific market verticals aligned with their business goals. This allows mobile operators to become truly business-driven.
Network Slicing
One of the key capabilities of standalone 5G is network slicing, which allows operators to create multiple virtual networks on the same physical infrastructure, each tailored to meet the specific needs of a particular customer or industry. For instance, a mobile operator working with a car manufacturer can create dedicated network slices for:
- Real-Time Automation and Robotics: With 5G’s ultra-reliable low-latency communication (uRLLC), operators can set up a dedicated network slice that responds almost instantly—within 1 millisecond. This enables robots and machinery on production lines to work seamlessly together, enhancing precision, reducing errors, and accelerating workflows.
- Advanced Predictive Maintenance: Another slice optimized for high-speed connectivity (1–10 Gbps in real scenarios) allows sensors to monitor equipment in real-time. This proactive approach identifies potential issues early, preventing costly downtime and improving operational efficiency.
- Enhanced Vehicle Connectivity: A slice designed for vehicle-to-everything (V2X) communication ensures real-time connectivity between cars, nearby infrastructure, and the cloud. By leveraging edge cloud platforms to process data like traffic updates and vehicle coordination near 5G base stations, delays are minimized. This improves safety in automated driving and enhances traffic flow.
This flexibility enables operators to meet unique needs across industries like automotive, healthcare, and manufacturing while aligning their networks with business objectives.
Overcoming Organizational Disconnect
The gap between business and technology exists because the value chain has evolved significantly. In the past, networks were all about basic voice and text services, with technology teams leading discussions. Today, the value chain is more complex, involving new use cases, business opportunities, and aligning everything to revenue goals. Misalignment between technology and business teams can pull focus away from business goals, keeping vendor discussions technology-driven.
Conclusion
5G’s real opportunity lies in the enterprise sector, but the window for differentiation is closing. If vendor discussions remain technology-led, operators risk falling behind competitors. At Commsbrief, we help mobile operators bridge the gap between business goals and technology strategies to unlock 5G’s potential. With 20 years of experience, we provide independent, straightforward advice tailored to your needs—no unnecessary services, no overcomplication. Discover how Commsbrief consulting services can help you align your goals with practical strategies.
