Oracle survey finds that vast majority of CSPs planning to launch 5G networks within the year still don’t have the technology needed to monetize these offerings
A new Oracle Communications survey shows that while 73% of communications service providers (CSPs) plan to launch 5G networks by 2022, 94% have challenges with their existing charging systems. As these CSPs look to monetize everything from streaming videos and network slicing to eHealth and virtual gaming, they worry their outdated charging systems will hinder customer experience, performance, and the ability to get new offerings to market quickly.
Read More: ServiceNow Named A Leader In The 2021 Gartner® Magic Quadrant™ For Enterprise Low-Code Application…
“CSPs are making significant investments in their 5G networks and need to be able to quickly and effectively monetize new services to get a return, as well as deliver on customer expectations,” said Jason Rutherford, senior vice president and general manager, Oracle Communications, Applications. “The survey shows that CSPs recognize they need to rethink current charging systems to fully capitalize on the revenue potential of 5G.”
The Oracle Communications survey, “5G Readiness Report: CSP Perceptions on Charging and Monetization for the 5G Era,” was conducted by OvationMR in May 2021 and included responses from 303 decision makers from the United States, Canada, Mexico, United Kingdom, Spain, France, Hong Kong, Singapore, South Korea, and Australia. Read the report to see if you are 5G ready.
Charging challenges could hinder innovation and experience
CSPs noted the top challenges they currently face when it comes to charging are the cost of managing their existing systems (38%) and the lengthy time-to-market for new offers (34%). They also feel ill-equipped to meet the performance and monetization needs of 5G and are concerned how their dated technology will impact customer experience.
Read More: Loopio Places On The Globe And Mail’s Third-Annual Ranking Of Canada’s Top Growing Companies
On average, CSPs plan to launch three new 5G-enabled services, ranging from enhanced mobile broadband to smart home, mobile gaming, retail and live entertainment offers. CSPs also expect to monetize 5G differently, using an average of three pricing levers such as data security, latency, and energy efficiency. To support these new business requirements, 86% of CSPs plan to upgrade charging systems over the next 18 months.
CSPs also have clear ideas on the features they need from their next charging system. The survey found that cross-network convergence (55%), flexible rating and charging schemas (37%), and cloud-native capabilities (32%) topped the list. CSPs’ top priorities also include using solution providers with cross-industry expertise, an innovative product roadmap, and robust software capabilities.
“CSPs realize the need for scalable, converged charging systems that will enable them to monetize any business model and complex 5G pricing levers, such as speed, latency and quality of experience (QoE),” added Rutherford. “This survey highlights the innovative service types and pricing methods that CSPs want to pursue in the 5G era and the importance of a full-featured solution to deliver those capabilities.”