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Just a third of telcos have clear 5G strategy

New research by NTT Data UK has found that only a third of telcos have a clear strategy for 5G. The study also found that half of enterprises expect to implement 5G solutions within the next year, yet the majority of telcos (88 per cent) plan to implement 5G solutions over the next 24 months – creating an overlap between buy-side demand and the sell-side supply.

The study was carried out by research firm teknowlogy Group and involved interviewing senior business leaders from across Europe to understand the complex picture of the current 5G market. Whilst 94 per cent of telcos believe 5G will transform the sector, only 35 per cent have a clear strategy in place. With the technology set to play an increasingly vital role across all industries and timelines narrowing, more aggressive transformation roadmaps are required to make the most of 5G.

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

Matthew O’Neill, head of networks at NTT Data UK, added, “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 programmes 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 here.