Only a third of telcos have a clear 5G strategy

New research from IT services provider NTT DATA UK and research firm teknowlogy Group shows only 35 percent of telcoms companies have a clear strategy in place for rolling out 5G.

This is odd given that 94 percent of the senior business leaders from across Europe interviewed believe that 5G will transform the sector.

Just under half (46 percent) are still exploring the value 5G can offer, but 88 percent do plan to implement solutions over the next 24 months. Only 10 percent of telcos expect to generate more than 20 percent of their revenue from 5G or 5G augmented products over the next five years though.

"We're starting to see enterprises take a serious look at the impact 5G will play on their business," says Ollie O'Donoghue, senior analyst at PAC, a teknowlogy Group company. "And while optimism is high, leaders are beginning to recognize 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."

Data management stands is the biggest obstacle to 5G adoption in their business according to 43 percent of telcos, with 35 per cent finding reliance and compliance issues to be one of the biggest barriers. Other obstacles to adoption include; talent shortage (31 percent), a limited pool of partners to support telcos (30 percent), legacy technology (28 percent), cultural challenges (24 percent) and uncertainty around the true benefits of the technology (23 percent).

Matthew O'Neill, head of networks at NTT DATA UK,says:

5G stands to disrupt the telco industry more than most, given the high demand for 5G technology across all industries. As such, telco businesses need to ensure they have a clear strategy to manage the transformative impact of the technology and meet current demand. The benefits of wider implementation promise great opportunity, but clarity is needed to ensure a smooth transformation journey.

NTT DATA is helping clients to navigate the advent of 5G, and construct strategies that streamline the transition process and accelerate the development new services and solutions. Transformation programs of this depth and scale historically take up significant time and resources, so a comprehensive strategy is required if telcos are to meet expectations and deliver on the potential of 5G.

The full report is available from the NTT DATA site.

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