The paper entitled “5G business models: how to match supply and demand” has been published relating to the 3rd Talk Futur#Lab, the project promoted by I-Com and WINDTRE, in collaboration with Join Group and with the partnership of Ericsson and INWIT.
The Private Network they are among the innovations related to 5G with the highest potential for the development of the telecommunications sector. Although lagging behind other large European economies, such as Germany and France, Italy is also seeing the first creations of private 5G networks, in which companies see among the main benefits those of “greater control and configuration of the network, resources and operations”, “better network reliability and resilience” and “better privacy and security”. But to accelerate their diffusion, the Government should contribute by expanding the tax breaks provided for by the future “Transition 5.0” plan which have so far been excluded.
I study “5G business models: how to match supply and demand”
These are some of the themes that emerge from the titled study “5G business models: how to match supply and demand” created by the Institute for Competitiveness (I-Com) and Join Group as part of Futur#Lab, the project promoted by I-Com and WINDTRE, in collaboration with Join Group and with the partnership of Ericsson and INWIT.
Roberto Basso (W3)
The survey was presented in Rome during the third round table of 2023 which was attended by, in addition to the I-Com president Stefano da Empoli and to the Director of External Affairs and Sustainability of WINDTRE Roberto Bassothe senior business advisor of Join Group Enrico Barsotti and the vice president of I-Com Silvia Compagnucci – who illustrated the research – the Professor of Telecommunications at the Polytechnic University of Milan Antonio CaponeProfessor of Strategy, Entrepreneurship and Governance SDA Bocconi Carlo Alberto Carnevale Mafféthe CEO of Open Gate Italia Laura Rovizzil’External Relations, Communication & Sustainability Director Inwit Michelangelo Suigothe Deputy of Action-Italia Viva-Renew Europe and secretary of the Finance Commission Mauro Del Barba and the Director of the International Activities and Frequency Planning Division of the General Directorate for communications technologies and IT security, Ministry of Business and Made in Italy Umberto Mascia. The debate was moderated by the president of Join Group Alessandra Buccipartner of the initiative.
What emerges from the data
The report highlights how there are signs of the monetization of the 5G service in the consumer segment around the world but in Italy the widespread competition has effectively thwarted the introduction of the new generation of cellular technologywhich does not slow down the fall in turnover. In the five-year period 2018-2022, revenues in the telco sector decreased by 13.7%, going from €31.2 to €26.9 billion. The decline affected both fixed and mobile communications even if it is much more pronounced for the latter which, in the five-year reference period, lost 20.4% of revenues. The prospect of increasing subscriptions to the service, in the specific case of the Peninsula, will not have the positive effects recorded in other countries.
Among the innovations related to 5G with the highest potential are Private Networks serving businesses, networks designed specifically for a business organization with the goal of optimize and redefine processes and satisfy needs in terms of coverage, performance and security at levels impossible to achieve using a public network. The main benefits that companies see in this technology are “greater control and configuration of network, resources and operations”, “better network reliability and resilience” and “better privacy and security”.
According to data collected by the Global Mobile Suppliers Association (GSA), 955 private networks had been deployed globally at the end of the third quarter of 2022, an increase of approximately 32% compared to 2021 and 123% compared to 2020.
What happens in Italy
Lagging behind other large European economies, such as Germany and France, in Italy too we are seeing the first creations of private 5G networks, capable of increasing productivity, exploiting the potential of data and increasing the level of security of companies. The latest data from the European 5G Observatory (September 2023) identifies 94 implementations of private corporate mobile networks located in 21 EU Member States with a greater concentration in Germany (20) and France (13), while only four networks of this type are active throughout the country. From a sectoral point of view, the analysis shows a clear prevalence of industry, which has 50 cases, while in second place is the transport sector with 20. Relatively to Italy, most of these pertain toindustry – there is an example of this collaboration between WindTre Business and the Psa Italy terminal in Genova Pràwhich aims to create a Smart Port in Genoa in the coming years based on a secure, high-performance and expandable 5G private network – and one within the scope education and research.
The statements
“2024 could be the year of 5G private networks: the technology is mature, the benefits are clear, we have already seen the first practical realizations this year. The combination of these factors can lead to a rapid growth in the diffusion of this application of the new generation of connections, which, let us remember, are an enabling factor of artificial intelligence and other technologies decisive for digital transformation”, commented the I-Com president Stefano da Empoli. “The Government can give a decisive impulse to the acceleration through a “Transition 5.0” plan which should also include among the subsidized expenses those relating to connectivity, which was culpably excluded from the previous provisions”.
What is needed for the digital transition
An important role in bringing companies closer to new technologies is in fact played by incentives for the digital transition. However, those subject to incentives and support do not include network infrastructures enabling telecommunications and this constitutes a serious deficitas there is a significant interconnection between industrial machinery and networks. Demand support policies should first of all focus on small and medium-sized companies which are not capable of activating complex projects and which would nevertheless be started on the path to digitalisation. In Italy there are approximately 4 million micro-enterprises, representing almost 95% of the companies active in the area and more than 26% of the added value achieved.
What is needed to improve 5G networks
NWith a view to improving the coverage and performance of 5G networks, and given the growing demand for mobile connectivity, with pervasiveness and high performance requirements, the development of dedicated indoor coverage appears necessary. These are the so-called DAS (Distributed Antenna System), which improve the signal reception of mobile operators in particularly dense and crowded areas or where the signal is not sufficient to ensure optimal reception (hospitals, museums, shopping centres, stadiums, etc.). DAS coverage is created with a multi-operator perspective and allows improving the mobile service for all mobile customers present in the area, but can be also useful for the development of private networks that can exploit the same coverage infrastructure, using dedicated frequencies, but also public oneswith obvious advantages of optimizing costs and visual impacts.