5G Standalone (SA) and 5G Advanced: Use Cases and Their Potential Value

5G Standalone (SA) and 5G Advanced are reshaping the connectivity landscape, offering ultra-reliable, high-speed networks that unlock transformative B2B use cases across various industries. With capabilities like ultra-low latency, network slicing, massive IoT deployments, edge computing, API integration, private 5G networks, and NTN-based satellite connectivity, these technologies can create enormous value for telcos working with B2B customers while driving innovation across global markets.

Telco Opportunities

Telcos can capitalize on 5G SA and Advanced through:

Network Slicing: Tailored virtual networks for specific industries and applications create premium services.
Massive IoT and Industrial IoT: Supporting billions of connected devices and offering industry-specific solutions.
Edge Computing: Deploying data processing at the edge to support mission-critical applications.
API Integration: Monetizing network capabilities and fostering innovation across verticals.
AI-driven Analytics: Optimizing network performance and extracting actionable insights.
Vertical Partnerships: Collaborating with industries like automotive, healthcare, and logistics to co-create specialized solutions.
System Integration and Consulting, developing these capabilities will enable enhanced revenues over and above a pure connectivity play.

Key Use Cases

Through this article we have focused on the following verticals/use cases enabled by 5G SA and Advanced which could yield between $722–985 billion in revenue for Telco's:-

Smart cities
Mission Critical networks
Private 5G networks
NTN based satellite connectivity
5G Railways
5G Automotive V2X
Massive IoT
Industrial IoT
Healthcare
Edge Compute
Network exposure through API's

Smart Cities:

Details: Leveraging IoT, smart cities enable real-time traffic monitoring, energy efficiency, public safety enhancements, and optimized waste management. Massive IoT supports widespread deployment of connected sensors, while IIoT ensures seamless infrastructure maintenance and monitoring.

Predicted Value: Telcos can partner with urban planners and municipalities to provide tailored connectivity solutions. The global smart city market is expected to reach $2.5 trillion by 2025 (source: Allied Market Research).

Telco share:

Telcos primarily play the role of connectivity providers, enabling IoT deployments and network management in smart cities. Their potential income share, estimated at 5-8%, stems from:

Contributing Factors: IoT infrastructure deployment: Telcos provide the backbone for smart city sensors, traffic management, and energy optimization. Data transmission and management: Reliable connectivity is essential for real-time communication and analytics.
Challenges: The majority of smart city investments are driven by government budgets and private enterprises specializing in software and hardware. Telcos might face difficulties in monetizing their services beyond basic connectivity.

However some Telco's with strong SI/Consulting arms like DeTeCon, VOIS, STC Solutions, ZainTech, and Orange Business enable them to go beyond traditional connectivity services. These divisions focus on delivering end-to-end solutions, including digital transformation, cloud services, IoT integration, and industry-specific applications.

Role of SI Arms: Telcos with consulting services can offer tailored solutions for urban planning, IoT deployment, and data analytics. For example, Orange Business specializes in digital transformation projects for municipalities, and VOIS provides expertise in technology integration.
Enhanced Market Share: SI capabilities could increase telcos' share to 8-12%, as they can provide value-added services beyond connectivity.

Dedicated Mission-Critical Networks for First Responders:

Details: Emergency services like police, firefighters, and paramedics rely on ultra-reliable communication powered by 5G. Features like priority access, pre-emption, and ultra-low latency ensure uninterrupted and secure operation during critical situations.

Predicted Value: Collaboration with public safety agencies can generate significant revenue streams for telcos. The global market for public safety LTE and 5G is projected to grow to $13 billion by 2028 (source: Global Market Insights).

Telco share:

Telcos play a critical role in providing mission-critical networks to public safety agencies. Their income share, estimated at 20-30%, comes from:

Contributing Factors: Priority access and pre-emption: Features like ultra-reliable, low-latency networks are indispensable for emergency communications. Partnerships: Collaborations with governments enable telcos to offer specialized solutions.
Challenges: Public safety networks are often subject to strict regulatory oversight, which might limit pricing flexibility. Competition from private network providers can erode telcos’ revenue share.

SI/Consulting arm impacts:-

Role of SI Arms: Companies like DeTeCon and STC Solutions can design and implement mission-critical networks with advanced security and reliability.
Enhanced Market Share: Consulting expertise could push telcos' share to 25-35%, leveraging their ability to deliver customized solutions.

Private 5G Networks:

Details: Private 5G networks allow enterprises to deploy localized and dedicated connectivity solutions optimized for their specific needs. These networks ensure robust security, high performance, and reliability, making them ideal for industries like manufacturing, logistics, healthcare, and retail.

Predicted Value: Telcos can generate significant revenue streams by providing private 5G networks to enterprises. The private 5G network market is anticipated to grow to $31 billion by 2030 (source: Markets and Markets).

Telco share:

Private networks represent one of the most lucrative opportunities for telcos, with a rough order of magnitude (ROM) share of 40-50%. This is driven by:

Contributing Factors: End-to-end solutions: Telcos manage deployment, maintenance, and security for enterprises. Customization: Industry-specific networks tailored to manufacturing, healthcare, and retail needs.
Challenges: Enterprises may opt for non-telco providers offering competitive private network solutions. High upfront costs for deploying private 5G infrastructure.

SI/Consulting arm impacts:-

Role of SI Arms: Telcos like ZainTech, Orange Business, and VOIS can deploy private networks tailored to specific industries, integrating IoT and edge computing.
Enhanced Market Share: SI capabilities could increase telcos' share to 50-60%, as enterprises value end-to-end solutions.

NTN-Based Satellite Connectivity:

Details: Non-Terrestrial Networks utilize satellites in geostationary (GEO), medium earth orbit (MEO), and low earth orbit (LEO) to provide seamless connectivity in remote and rural areas. Applications include:

Precision Agriculture: Monitoring soil conditions, weather, and crop health for improved efficiency.
Environmental Monitoring: Tracking air and water quality for conservation efforts.
Emergency Response: Supporting communication for disaster recovery and first responders in regions with limited infrastructure.

Predicted Value: NTNs open new market opportunities for telcos to offer services in underserved regions. The global NTN market is set to grow to $31.7 billion by 2029 (source: GlobalData).

Telco share:

NTN-based satellite connectivity enables telcos to extend coverage to rural and remote areas. Their rough order of magnitude (ROM) share of 10-15% is influenced by:

Contributing Factors: Integration with 5G: Telcos can offer hybrid connectivity combining terrestrial and satellite networks. Partnerships with satellite operators: Telcos act as intermediaries, providing network services to end-users.
Challenges: Satellite operators often dominate the ecosystem, limiting telcos’ direct involvement. Cost-sharing agreements may reduce profit margins.

SI/Consulting arm impacts:-

Role of SI Arms: Telcos with consulting divisions can integrate satellite connectivity into hybrid solutions for rural and remote areas. ZainTech focuses on smart infrastructure, while VOIS can bring technological expertise for remote connectivity.
Enhanced Market Share: SI expertise could raise telcos' share to 15-20%, as they can offer comprehensive solutions.

5G Railways:

Details: 5G supports the Future Railway Mobile Communication System (FRMCS), enabling real-time train control, predictive maintenance, and enhanced passenger connectivity.

Predicted Value: Telcos can deploy private networks for railway operators, accessing the growing market for railway communication systems, estimated to reach $15 billion by 2030 (source: Future Market Insights).

Telco share:

Estimated Telco Market Share Without SI: 15-20%
Justification: Core Connectivity: Telcos provide the essential 5G infrastructure for railways, including FRMCS (Future Railway Mobile Communication System)-ready networks. This includes enabling real-time train control, predictive maintenance, and passenger connectivity.
Limited Integration: Without SI capabilities, telcos are less involved in deploying end-to-end solutions, such as integrating 5G with railway signalling systems or operational platforms. This limits their ability to capture additional value.
Dominance of Rail Operators and Vendors: Rail operators and specialized vendors often lead the deployment of private 5G networks, with telcos playing a supporting role in providing connectivity.

SI/Consulting arm impacts:-

Role of SI Arms: Telcos play a critical role in deploying FRMCS-ready 5G networks for railways, enabling real-time train control, predictive maintenance, and enhanced passenger experiences. Companies like DeTeCon and Orange Business can integrate private 5G networks with railway operations.
Enhanced Market Share: Telcos could capture 30-40% of this market, as they are central to providing connectivity and operational solutions for rail operators.

5G Automotive V2X (Vehicle-to-Everything):

Details: This enables seamless communication between vehicles, infrastructure, and pedestrians, supporting advanced driver-assistance systems (ADAS), autonomous driving, and efficient traffic management.

Predicted Value: Telcos can work with automotive manufacturers and smart city initiatives to provide connectivity solutions. The V2X market is expected to grow to $20 billion by 2027 (source: Markets and Markets).

Telco Share:

Estimated Telco Market Share Without SI: 10-15%
Justification: Connectivity Role: Telcos primarily provide the underlying 5G connectivity for V2X applications, such as vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-network (V2N) communication. However, much of the value in V2X lies in software platforms, edge computing, and automotive hardware, which are dominated by automakers and technology companies.
Limited Value-Added Services: Without SI capabilities, telcos are less likely to offer integrated solutions, such as real-time traffic management systems or autonomous driving platforms, which reduces their share of the overall market.
Competitive Landscape: Automakers and tech giants like Qualcomm and Harman International are heavily involved in V2X development, capturing a significant portion of the market value.

SI/Consulting arm impacts:-

Role of SI Arms: Telcos with consulting divisions, such as VOIS and STC Solutions, can enable seamless communication between vehicles, infrastructure, and pedestrians. They can also integrate V2X solutions with smart city initiatives.
Enhanced Market Share: Telcos could secure 25-35% of this market, leveraging their expertise in connectivity and partnerships with automotive manufacturers.

Massive IoT:

Details: Massive IoT involves billions of low-cost, low-power devices used across industries:

Smart Agriculture: Sensors monitor soil moisture, weather, and crop health for precision farming.
Smart Grids: Devices optimize energy distribution and consumption.
Environmental Monitoring: Sensors detect air and water quality for conservation efforts.

Predicted Value: Telcos can provide scalable IoT solutions, with the global IoT market predicted to surpass $1.8 trillion by 2028 (source: Fortune Business Insights).

Telco Share:

IoT spans industries like agriculture, healthcare, and logistics, with telcos contributing connectivity and network management. Their income share is estimated at 5-10% due to:

Contributing Factors: Device connectivity: Telcos enable billions of IoT devices to communicate. Data-driven services: Analytics derived from IoT networks may provide additional revenue streams.
Challenges: Device manufacturers and software providers dominate the IoT ecosystem.

Monetizing IoT beyond connectivity remains a challenge.

SI/Consulting arm impacts:-

Role of SI Arms: Telcos like VOIS and STC Solutions can provide IoT integration services, including device management and analytics.
Enhanced Market Share: Consulting services could increase telcos' share to 10-15%, as they can deliver more holistic solutions

Industrial IoT (IIoT):

Details: IIoT connects high-powered industrial devices and systems for productivity and efficiency:

Predictive Maintenance: Reduces downtime by monitoring machinery and scheduling maintenance.
Remote Monitoring and Control: Supports real-time oversight of industrial processes.
Supply Chain Optimization: Tracks inventory and shipments for efficient logistics.

Predicted Value: The IIoT market is expected to grow significantly, contributing to the $1.1 trillion IoT market by 2028 (source: IoT Analytics).

Telco Share:

Telcos’ involvement in Industrial IoT, driven by network slicing and private networks, allows for a higher estimated share of 15-20%:

Contributing Factors: Connectivity for critical operations: Industries rely on ultra-reliable networks for automation and real-time monitoring. Partnerships: Telcos collaborate with manufacturers and logistics providers for IoT deployments.
Challenges: Competition from non-telco solution providers offering IoT platforms and management tools.

High expectations for network reliability and security.

SI/Consulting arm impacts:-

Role of SI Arms: Telcos with strong SI arms can offer predictive maintenance, supply chain optimization, and automation solutions. DeTeCon excels in technology consulting for industrial applications, and VOIS offers customized solutions for businesses.
Enhanced Market Share: SI capabilities could push telcos' share to 20-25%, as industries seek integrated solutions.

Healthcare Innovations:

Details: Reliable, high-speed 5G enables remote diagnostics, telemedicine, wearable health devices, and robotic surgeries.

Predicted Value: Partnerships with healthcare providers can position telcos to capture a share of the telemedicine market, which is forecasted to reach $460 billion by 2030 (source: Global Market Insights).

Telco Share:

Telcos play a limited role in telemedicine, primarily providing connectivity for healthcare services. Their income share, estimated at 5-8%, comes from:

Contributing Factors: Remote healthcare connectivity: Telcos ensure reliable connections for teleconsultations and diagnostics.
Challenges: The majority of value is captured by healthcare providers, medical device companies, and software platforms.

Regulatory barriers can limit telcos’ involvement in the healthcare ecosystem.

SI/Consulting arm impacts:-

Role of SI Arms: Telcos like Orange Business and VOIS can integrate connectivity with healthcare platforms, enabling remote diagnostics and teleconsultations.
Enhanced Market Share: Consulting expertise could increase telcos' share to 8-12%, as they can offer tailored healthcare solutions.

Edge Computing:

Details: By processing data closer to end-users, edge computing reduces latency and enhances application performance, especially for mission-critical applications like autonomous vehicles, industrial robotics, and real-time analytics.

Predicted Value: Telcos can provide edge compute services, collaborating with enterprises to deploy localized data processing. The edge computing market is expected to grow to $155.9 billion by 2030 (source: Grand View Research).

Telco Share:

Telcos can capture a significant share of 20-30% in edge computing due to their pivotal role in supporting latency-sensitive applications:

Contributing Factors: Infrastructure deployment: Telcos manage edge nodes and connectivity for real-time analytics. Partnerships with enterprises: Providing tailored edge computing solutions for industries like automotive and manufacturing.
Challenges: Competition from cloud providers and technology companies. High capital expenditure for edge infrastructure deployment.

SI/Consulting arm impacts:-

Role of SI Arms: Telcos with consulting divisions can deploy edge nodes and integrate them with enterprise applications. ZainTech focuses on cloud and edge computing, while VOIS delivers solutions for real-time analytics.
Enhanced Market Share: SI capabilities could raise telcos' share to 30-40%, as they can deliver localized processing solutions.

Exposing Network Capabilities via APIs:

Details: APIs allow telcos to expose 5G network capabilities to developers and vertical industries for seamless integration with specific applications. This supports innovations in industries like logistics, finance, and healthcare, enabling real-time data access, advanced analytics, and dynamic service customization.

Predicted Value: By monetizing APIs, telcos can unlock recurring revenue streams from developers and enterprise customers. The API management market is projected to reach $13.7 billion by 2027 (source: Markets and Markets).

Telco Share:

Monetizing APIs represents a direct revenue opportunity for telcos, with an estimated income share of 30-40%:

Contributing Factors: Exposing network capabilities: APIs enable telcos to offer value-added services to developers and vertical industries. Integration with industry applications: APIs facilitate seamless connectivity and analytics in logistics, finance, and healthcare.
Challenges: API management platforms from technology companies could compete with telco offerings. Telcos must continuously innovate to remain competitive.

SI/Consulting arm impacts:-

Role of SI Arms: Telcos like DeTeCon, Orange Business, and VOIS can help enterprises integrate APIs into their workflows.
Enhanced Market Share: Consulting services could increase telcos' share to 40-50%, as they can offer customized API solutions

Summary of market value

The following table summarizes the size of each market, the estimated percentage share for telcos without an SI arm, and the enhanced percentage share for telcos with an SI arm:

Summing Up Potential Market Sizes

Verticals like Smart Cities, Industrial IoT, and Private 5G Networks have the most substantial revenue potential, particularly for SI-enabled telcos due to the demand for tailored solutions.

Without SI Arm:

Adding all values together results in a total potential telco market of approximately $461–690 billion out of these B2B verticals enabled by 5G SA.

With SI Arm:

Telcos equipped with System Integration and consulting capabilities could capture a significantly larger portion, totalling approximately $722–985 billion across all verticals

Given an overall market size for Telco revenues today of $1.14 trillion in 2023 (Price Waterhouse Coopers). This figure is projected to grow at a compound annual growth rate (CAGR) of 2.9%, reaching approximately $1.3 trillion by 2028, these revenues could provide significant additional growth for Telco's.

NOTE All valuations are indicative in nature and based on 3rd party research

Conclusions

Telcos’ actual income from these markets depends on their ability to:

Differentiate themselves by offering specialized, value-added services.
Form partnerships across vertical industries to integrate seamlessly into broader ecosystems.
Invest in infrastructure while navigating regulatory and competitive challenges.
SI arms and consulting services are able to offer end-to-end solutions, including integration, customization, and value-added services, which significantly enhance their market share compared to telcos without SI capabilities.
Smart Cities, IoT, Industrial IoT, and Private 5G networks represent the most lucrative opportunities for telcos, especially those with SI arms, as enterprises increasingly demand tailored solutions.