Small businesses could account for a major portion of 5G revenue for communication services providers (CSPs), according to a new report from BearingPoint//Beyond and Omdia.
However, CSPs do not recognize SMBs as a main source of B2B revenue and are focused predominantly on enterprises, despite these organizations representing just one percent of businesses worldwide.
SMBs, on the other hand, have a strong understanding of the the value of 5G and see CSPs as their go-to partner. Almost half (42 percent) expect to rely on CSPs to execute their 5G strategies.
Meanwhile, almost three quarters (72 percent) of large enterprises would rather work with a vendor that isn't a CSP. A third will choose a cloud service provider to execute their 5G strategy, with another third opting for a do-it-yourself approach.
The SMB sector could become main driver of 5G-related revenue, the report claims, arguing that CSPs should not “squander the opportunity to support SMBs in realizing their 5G ambitions.”
According to the report, the real value of 5G for the SMB market lies in the creation of partner ecosystems, which should help them achieve strategic shifts, ultimately selling more services and reaching larger audiences.
“We’re looking at a new type of SME, one that is seeking a partner that will orchestrate comprehensive partner ecosystems to co-create solutions to provide them with a better service. For CSPs, this is a unique opportunity, especially considering SMEs see them as a strong candidate to fulfil this role,” said Angus Ward, CEO at BearingPoint//Beyond.
“However, to realize this opportunity, CSPs will have to address the different types of SMEs out there, their unique needs and the vertical context. This will mean gradually developing a growing number of solutions with an increasing number of technology partners and vertical specialists."