Telecom

The Next Frontier for Telco Revenue Streams: Monetizing 5G and Beyond

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March 17, 2025
For telecom operators, competing on price and data alone is no longer sustainable. The rollout of 5G presents not just an opportunity but a necessity to redefine revenue streams and reclaim value beyond pure connectivity.

With ultra-low latency, unprecedented speeds, and the ability to support vast device ecosystems, 5G enables a suite of high-margin services—from content and OTT partnerships to travel solutions and eSIM innovations. The challenge for telcos is clear: move beyond commoditization and leverage 5G’s full potential to craft differentiated, next-generation consumer offerings.

The Power of Bundling: A Proven Strategy for Telcos

Telcos have long used bundling to acquire customers (boosting revenue) and increase loyalty (lowering churn). With the expansion of 5G mobile, broadband fiber, and increasing consumer “cord-cutting,” telcos can now partner with OTT platforms, content providers, and cloud service companies to create compelling bundling options.

Key 5G Monetization Opportunities

1. Enhanced Connectivity: Expanding Network Reach

  • Fixed Wireless Access (FWA): High-speed broadband for underserved areas.
  • Low Earth Orbit (LEO) Connectivity: Affordable, satellite-powered internet.

Example: Starlink, a leader in LEO-based broadband, is expanding global coverage, particularly in underserved regions. By partnering with Starlink, telcos can offer Fixed Mobile Convergence (FMC) plans in areas without fiber infrastructure.

2. Value-Added Services (VAS): Unlocking New Digital Experiences

  • Mobile Gaming: Cloud gaming with lag-free experiences.
  • OTT Video/IPTV: 4K streaming and interactive live events.
  • Metaverse & Immersive Tech: Social and entertainment applications powered by 5G.

Example: Deutsche Telekom’s "5G+ Gaming" in Germany offers over 100 top-tier cloud games for free for six months via the "Sora Stream" platform.

Example: Telenor partnered with Netflix to deliver seamless streaming, bundling mobile and TV services for an enhanced customer experience.

Telcos looking to expand their digital bundling strategies can explore the aggregator model for content bundling.

3. Consumer IoT and Smart Living: The Rise of Smart Homes

  • Smart Home: Connected automation and energy efficiency solutions.
  • Wearables: Health-tracking and fitness-enhancing technology.
  • Public Services: Real-time updates on transport and utilities.

Example: SK Telecom’s Smart Home solution, built on an open IoT platform, enables customers to integrate devices like dehumidifiers, gas valves, and smart locks into their daily routines for efficiency and convenience.

Example: Etisalat by e& launched a rewards-based wellness app, incentivizing health-conscious behaviors with cashback offers on fitness wearables.

The impact of AI in telecoms is revolutionizing how telcos create smart solutions for connected living.

4. Digital Health: Transforming Healthcare with 5G

  • Telemedicine: Real-time consultations powered by ultra-fast connectivity.
  • Smart Healthcare: Remote patient monitoring and AI-powered diagnostics.

Example: Verizon and Visionable are pioneering hybrid digital healthcare solutions, optimizing patient care and reducing costs for hospitals.

5. Next-Gen Financial Services: Expanding Beyond Connectivity

  • Mobile Payments & Personal Finance: Secure and seamless digital transactions.
  • IoT-Based Insurance: Dynamic, data-driven premium adjustments.

Example: Safaricom’s M-Pesa, initially launched in Kenya, has transformed mobile payments across Africa and the Middle East, while Orange Money provides similar services throughout the region.

Example: Telefónica’s Movistar Money in Spain allows customers to obtain loans of up to €3,000 within 48 hours without documentation.

Monetizing telecom services effectively means maximizing ARPU while minimizing trade-offs.

6. Immersive Education & Entertainment: Enabling Interactive Learning

  • e-Learning: AR/VR-powered virtual classrooms.
  • e-Books & Mobile Ticketing: Creating rich, interactive experiences.

Example: EE’s 5G-powered extended reality (XR) solutions enable immersive educational and entertainment experiences, laying the foundation for metaverse-based learning.

7. Other High-Growth Applications

  • Connected Vehicles: Enabling autonomous and semi-autonomous driving.
  • Identity Services: Secure, real-time authentication.
  • Mobile Advertising: Hyper-personalized campaigns leveraging 5G analytics.

Example: triPica’s cloud-based BSS, designed for 5G telcos, has powered digital launches such as celcomdigi’s Yoodo in Malaysia and Bouygues Telecom’s eco-friendly offerings.

The Business Case for Telcos: Driving ARPU Growth

With 5G, telcos have an opportunity to boost ARPU through premium services, subscription-based models, and strategic bundling partnerships. Expanding into high-margin industries—such as gaming, financial services, and IoT—creates a roadmap for long-term sustainability.

However, challenges persist:

  • Legacy Infrastructure: Older systems can hinder innovation.
  • Competitive Pressures: The industry is becoming increasingly crowded.
  • Lack of Customer Insights: Personalization remains a challenge for many operators.

Despite these hurdles, telcos that innovate and bundle services effectively will unlock new revenue streams and secure their place in the digital ecosystem.

Unlock the Full Potential of 5G with triPica

Telcos can no longer compete on price and data alone. To capitalize on 5G, they must explore innovative bundling strategies, value-added services, and dynamic pricing models.

Legacy BSS platforms cannot support these evolving needs. The future requires a flexible, cloud-based BSS that enables telcos to forge partnerships and create high-value ecosystems. triPica’s 5G-ready BSS is designed to support these next-generation opportunities.

Reach out to triPica today to explore 5G monetization strategies tailored to your business.

FAQ:

The Future of Telco Revenue Streams

1. What are the key revenue opportunities for telcos beyond connectivity?

Telcos can diversify their revenue streams through mobile gaming, OTT services, fintech solutions, IoT, smart home technology, healthcare services, and immersive education.

2. How can telcos monetize 5G?

By bundling premium services, partnering with OTT and content providers, offering Fixed Wireless Access (FWA), and integrating cloud gaming, IoT solutions, and digital payments.

3. What role does cloud-based BSS play in telco transformation?

A flexible, cloud-native BSS enables telcos to quickly launch new services, integrate third-party partnerships, and offer seamless customer experiences tailored to 5G’s capabilities.

4. Why is bundling an effective strategy for telcos?

Bundling increases ARPU, enhances customer loyalty, and differentiates offerings by combining telecom services with digital products such as entertainment, fintech, and IoT solutions.

5. What are the biggest challenges telcos face in monetizing 5G?

Challenges include high infrastructure costs, legacy systems, increased competition, and the need for better customer insights to deliver personalized experiences.

6. How can telcos compete with digital-native companies?

Telcos must leverage data analytics, AI-driven personalization, and strategic partnerships to enhance their service offerings and create ecosystem-driven business models.

By optimizing their business models and embracing 5G-powered innovation, telcos can secure long-term growth in the evolving digital economy.