New research from NTT DATA UK and research firm teknowlogy Group has found that only a third of telcos have a clear strategy for 5G, despite an overwhelming majority recognising the transformative potential of the technology for the sector.
The study interviewed senior business leaders from across Europe to understand the complex picture of the current 5G market and discovered that whilst 94% of telcos believe 5G will transform the sector, only 35% have a clear strategy in place. With the technology set to play an increasingly vital role across all industries and timelines narrowing, more aggressive transformation roadmaps are required to make the most of 5G.
The research also raises concerns as to whether telcos are adequately prepared for the pace of 5G adoption, with almost half of telcos (46%) still exploring the value that 5G technology can offer. Moreover, the findings show that:
- Project timelines are tight, as over half of enterprises (52%) expect to implement 5G solutions within the next year.
- However, the majority of telcos (88%) plan to implement 5G solutions over the next 24 months, which may create an overlap between buy-side demand and the sell-side supply.
- Only 10 per cent of telcos expect to generate more than 20% of revenue from 5G or 5G augmented products over the next 5 years.
Ollie O’Donoghue, Senior Analyst at PAC, a teknowlogy Group company, said: “We’re starting to see enterprises take a serious look at the impact 5G will play on their business. And while optimism is high, leaders are beginning to recognise that a lot of work is still needed to develop the foundations necessary to deliver real value from 5G. Moreover, there is a pressing need to find solutions to a growing list of challenges – from the maturity of solutions on the market to robust security and data management capabilities to soothe compliance concerns. There’s a significant role to play for the evolving ecosystem of vendors and providers in the space as enterprises look for more support as they head further into their 5G journeys.”
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