Innovating with 6G and fulfilling the failed promises of 5G

By Kelvin Chaffer 17 May 24 Reading time: 6 mins

Like its predecessor, 6G holds much promise for telcos, particularly when it comes to how they operate and deliver value to customers. From enhanced network capabilities to customer experience, 6G’s higher speeds, minimal latency, and colossal bandwidth are anticipated to support applications beyond the mobile-centric for a range of new use cases across multiple sectors. 6G will build upon the foundations of 5G, with early discussions suggesting that it will utilise similar interfaces, exhibiting a continuation in the evolution of communication standards. 

However, the rollout of 5G was also once heralded as a new dawn for telcos, the full potential of which has yet to be realised. 5G implementation proved to be a vast and costly project for operators. While it delivered network quality and power efficiency, which has been great for customers, operators have largely been unable to monetise the investment effectively.According to Nick Johnson, head of the UK Telecoms Innovation Network (UKTIN), annual UK telco revenue has dropped by £10 billion in under ten years. Therefore, operators must focus on the costs of rolling out 6G and place greater emphasis on operational efficiency. As an industry, we must take advantage of the insights gained from implementing and adopting 5G to devise more realistic and practical use cases for 6G, aiming to address existing challenges and capitalise on new connectivity opportunities for better monetisation.

Leveraging 6G for monetisation and defining use cases

Luckily, we’re still early enough on the 6G planning journey to allow this to happen. 6G is designed to explore more frequency bands, particularly in mmWave GHz and sub-THz ranges, offering broader bandwidth access that’s capable of delivering up to 1 terabit per second of capacity. Therefore, research and development efforts are exploring technologies such as terahertz frequencies, advanced antenna systems, and artificial intelligence to push the boundaries of wireless communication and realise the potential of new technologies outside the traditional sphere of mobile operators. 

From autonomous vehicles to smart factories, remote healthcare, high-resolution content, and immersive media experiences, operators can harness 6G to make money in several ways. Subscription models, service fees, and partnerships with industry verticals and technology providers all offer routes to new revenue sources.

Network slicing to cater to business needs is one example. 6G is expected to enable more advanced network slicing capabilities, allowing operators to create tailored network slices for different use cases, industries, or customers. A Converged Charging System provides the online charging and rating capabilities to enable such use cases. This level of customisation offers the opportunity to develop premium services with higher reliability, lower latency, and specific features that serve various business needs.

Indeed, tailored 6G solutions for industry verticals will be a crucial revenue generator. By offering end-to-end propositions and managed services for industrial IoT, automation and robotics, predictive maintenance, or smart infrastructure, operators can create value for their expertise and infrastructure to address the digital transformation needs of enterprises.

From autonomous vehicles to smart factories, remote healthcare, high-resolution content, and immersive media experiences, operators can harness 6G to make money.

Moreover, with 6G networks generating massive amounts of data from diverse sources, operators can realise data monetisation potential through analytics, insights, and AI-driven services. Operators can also create new revenue streams beyond traditional connectivity services, by providing businesses and organisations with data-driven insights to enable decision-making, marketing, product development, and operational optimisation.

Edge computing is a further example. 6G’s ultra-low latency and high bandwidth will make edge computing more powerful and pervasive. Operators have a further opportunity to monetise 6G by offering edge infrastructure, platforms, and services to enterprises and developers. Running low-latency applications such as augmented reality (AR), virtual reality (VR), gaming, autonomous vehicles, and real-time analytics, could stimulate new revenue streams. 

6G’s ultra-low latency and high bandwidth will make edge computing more powerful and pervasive.

Indeed, 6G networks will be a cornerstone of higher-resolution content and immersive media experiences such as AR, VR, and gaming applications. By partnering with content providers, gaming companies, and streaming platforms to offer premium services and bundles that leverage 6G capabilities, there is a further opportunity to enhance the user experience and generate revenue.

Bringing down costs and ensuring operational efficiency

However, while there are a range of new revenue opportunities, lessons learned from 5G include the need to reduce costs and enhance operational efficiency, so that this latest generation of connectivity is less of a financial burden from the outset. To do this, mobile network operators expect to adopt flexible, decentralised 6G models and strategies, including local spectrum licensing, spectrum sharing, and infrastructural sharing, powered by intelligent and flexible Business Support Systems (BSS) with a high degree of automation. 

Embracing industry standards and interoperable solutions is one such strategy, promoting vendor diversity and competition and reducing dependency on specific vendors or technologies. Open Radio Access Networks (RAN) are a great example, offering a unique opportunity to minimise operator reliance on a single vendor’s products and pricing for the components of mobile networks, thereby creating greater flexibility as well as the potential to reduce costs. By leveraging standardised interfaces and virtualisation techniques, operators can maximise 5G and deploy 6G networks using off-the-shelf hardware, reducing dependency on proprietary equipment and lowering deployment and maintenance costs.

Meanwhile, Software-Defined Networking (SDN) and Network Functions Virtualisation (NFV) enable operators to virtualise network functions, centralise network control, and dynamically allocate resources based on demand. By decoupling hardware from software, operators can achieve greater flexibility, scalability, and cost savings in network deployment, management, and service delivery.

Leveraging automation, AI and machine learning (ML) technologies can also reduce human intervention in network management, optimisation, and troubleshooting tasks to enhance operational efficiency. By deploying AI-driven analytics platforms, self-optimising networks, predictive maintenance systems, and autonomous operations, operators can streamline processes and improve resource utilisation to reduce operational costs.

Collaborating with other operators or infrastructure providers to share the cost of deploying 6G infrastructure can also deliver efficiencies. Shared base stations, towers, and fibre optic cables expand coverage more cost-effectively to reduce capital expenditures (CAPEX) while minimising duplication of effort and resources.

By decoupling hardware from software, operators can achieve greater flexibility, scalability, and cost savings in network deployment, management, and service delivery

Optimising spectrum usage is also critical for maximising the capacity and performance of 6G networks while bringing down costs. Operators can employ advanced spectrum management techniques, dynamic spectrum sharing, spectrum refarming, and spectrum aggregation to maximise available frequency bands and reduce the need for additional spectrum acquisitions.

By implementing these strategies, telecom operators can lower the costs of rolling out 6G networks, enhance operational efficiency, and improve the overall competitiveness of their offerings in the market. Embracing the opportunities for new use cases beyond traditional telco offerings and developing innovative business models means telecom operators can position themselves to succeed in the 5G and 6G era and unlock new sources of revenue previously untapped with 5G.

Kelvin Chaffer / Guest Writer

Kelvin Chaffer is CEO of Lifecycle Software