May/June 19 - ChannelVision Magazine

Mobile & Wireless wireless carriers in certain regions or buildings. Yet in the survey, fully 93 percent of the CTOs said they expect network sharing to increase with ef- forts to bring 5G to areas where it doesn’t make sense to have multiple networks, while approximately 90 per- cent expect third-party neutral hosts to supply a part of their networks. “While these results align with what we see in our own proprietary models, the large industry consen- sus is remarkable,” said the McKin- sey study. To some degree, it’s not hard to understand why carriers might lack lucidity when projecting 5G econom- ics and revenue models. After all, the first 5G smartphones are just start- ing to hit the market. And one could argue that 3G adoption was initially slow and network capabilities weren’t truly recognized until after Blackberry and especially the iPhone exploded onto the market. According to Erick- son data, 5G smartphone connec- tions won’t hit a billion worldwide until sometime in 2023. In other words, 5G innovators haven’t really had time to innovate, so we could be back to that reality where “the killer app doesn’t yet exist.” And in the long run, network opera- tors know that any innovations that eventually might be spawned by 5G capabilities will have to run over their 5G networks. o Serving more than 20,000 locations. Our redundant fiber network is connected to multiple Tier 1 internet providers. Contact us today to learn more! 866-541-5000 Blackfoot.com/Carrier 5G large-scale deployment timeline, % of respondents Source: McKinsey & Company Demand Drivers for Tech Firm Vertical Specialization Source: CompTIA En Do dev So Customer demand Significant rev nue opportunity Competitive differentiator In-house skills map well Vendors pushing toward verticals Horizontal work not as lucrative Declining margins in other business areas 62% 54% 42% 24% 22% 22% 19% Importance of Vertical Industry Work in the Last Year 75% Sm C I All operators Asia Multicountry operators Europe North America Before 2020 2020-22 2022-25 31 40 25 11 56 61 40 67 78 44 8 20 8 11 16 Channel Vision | May - June, 2019