Nokia studies outline business return-on-investment from 5G services

Press Release

• Nokia studies remove 'guesswork' from operator and enterprise 5G business planning
• Findings show solid business case including payback periods for new, high-value services services supported by 5G, their business models and network impact

Data shows only 5G can provide performance required for services including industrial applications and immersive virtual reality video to huge audiences

18 April, 2017

Brooklyn, New York - Nokia is leveraging its business modeling and 5G Acceleration Services capabilities to remove the guesswork from operators' 5G network evolution plans. New Nokia studies have revealed the benefits of deploying 5G and identify those services with the potential to offer the greatest return on investment.

5G promises to change many aspects of the way people live and work, and service providers and enterprises want to understand how it will meet their specific business needs. Using tailored modelling that reflects customer-specific needs, Nokia's 5G Acceleration Services can help operators and enterprises identify how the move to 5G will enable them to deliver new services that transform the customer experience and create new revenue streams.

In-depth Nokia analysis of how 5G will perform in real networks has found that it can:

• increase capacity by 40 times compared to 4G, making it the only commercially viable technology for the delivery of a true immersive VR video experience to massive numbers of subscribers in high-attendance venues
• substantially reduce the cost-per-device in a smart city deployment handling millions of connected devices, including IoT sensors
• deliver the '99.999 percent reliability' and low-latency at-scale required in an Industry 4.0 environment

Nokia's research and analysis also shows how operators and enterprises can capitalize on early 5G deployments to drive the best return on investment (ROI). Business cases include:

• '5G to the Home' will break even after four years if the monthly average revenue per user remains above EUR 40
• 5G events and hotspots, in locations such as stadiums, have a one-year payback period depending on the number of events held at the location, with at least five events per month required to ensure a profitable business case
• operators can achieve tangible early mover advantages in terms of revenue and market share for services such as in-vehicle infotainment

Joe Madden, Principal Analyst at Mobile Experts said: "While market news has recently focused on the announcement of 5G technologies that drive increased network performance, it's important to discuss how these low latency broadband connections will translate into customer value. With the publication of the two new studies and its 5G Acceleration Services, Nokia is showing operators and enterprises how they will be able to benefit from early 5G deployment."