Dario Talmesio - Research Director
MWC is an event about networks. Everything at the show revolves around connectivity and the performance of networks to connect things and people. We can expect most of the show to continue to be centred around the powerful capabilities of 5G networks, the deployment of “real 5G” (5GSA) and network slicing, network automation, more standardized open networks, quality of service (QoS), a glimpse into 6G, and even some collaboration/integration with satellite.
Overall we will hear how CSPs intend to spend their $12.4tn capex in the next five years. However, two years of pandemic have not only challenged the practicalities of attending the show, but have also posed serious questions about the future of CSPs. Is a connectivity-centred business model fit for sustained future growth? Are CSPs the exclusive provider of future connectivity needs for people and things? The answers to both questions are unequivocable: no and no. In fairness, CSPs have known this for a long time and attempts to diversify their business have regularly occurred in the past.
At MWC 2022, we can expect to see CSPs adding more substance to their plans to introduce a growth-oriented operating model that doesn’t solely rely on connectivity.
We will be hearing from CSPs that made strides into the health sectors, the banking and financial services, security services, and even the energy and utility sector. During the show it will become clear that telecom operators are in the process of transforming their business models into multivertical businesses and that the future of telecom operators increasingly resides in B2B and B2B2X services capabilities.
Again, these are not topics that we haven’t heard before, but this year CSPs will be a bit less network-centric and a bit more service-centric. 5G exposed the need for CSPs to be able to provide end-to-end services, and these services are increasingly becoming outcome-centric rather than connectivity-centric. CSPs will need to invest in upskilling their workforce: mastering the cloud, effectively using AI and data analytics, understanding their customers’ business processes, providing SLAs for multiparty solutions and many other areas.
Source: Omdia Communications Provider Revenue and Capex Forecast: 2021–26
In short, at MWC 2022, we expect to hear more about growth opportunities and investments, and less about cost cutting and network performance.
Following its investment beyond connectivity, Orange is now one of theEuropean leaders in cybersecurity, but it is also a significant player in financial services. The company is a good source of best practices for diversification.It is also worth bearing in mind that MWC 2022 is hosted in Spain, where Orange and Vodafone are advocating for network consolidation—don’t expect an announcement, but listen to the business rationale of telco M&As.
In 2022, Telstra is set to take on the energy market. As part of its T25 strategy, the company is also planning to expand into the health sector internationally. We are looking forward to an update on such a strategy as it will prove inspirational to many other CSPs in the world.
Vodafone—one of the superstars of every MWC—will provide insights into its network as a platform strategy. It recently announced its first 5G open RAN site in the United Kingdom.Over the years, Vodafone has transitioned from being a horizontal provider of connectivity to an end-to-end solution provider: we look forward to seeing more progress in such direction.
You can meet with Omdia's expert team at the following events:
Big 5G Event (May 16–18, Austin)
CommunicAsia (June 1–3, Singapore)
Network X – Broadband World Forum, 5G World alongside the introduction of Telco Cloud (October 18–20 2022, RAI, Amsterdam)
