Mobile subscribers across the globe awaiting the arrival of 5G are finally being rewarded for their patience. Each month brings announcements from major network providers about new markets where the lightning fast cellular connectivity is finally available. Add the increased availability of 5G-enabled phones and consumers are ready to partake of all the potential perks that come with the latest network technology.
With network speeds ranging from 10 to 100 times faster than a typical cellular connection, I’d venture to say that gamers, mobile video aficionados and connected home fans, in particular, are eager to see what the promise of low latency and improved reliability means in a more connected world.
For operators, 5G delivers an array of revenue opportunities. This could not come at a better time as they each look to recoup the massive investments they’ve made building this next generation network.
And although commercial IoT use cases – connected cars, telemedicine, smart city infrastructure, factory and manufacturing – often top the revenue generation list, operators must not ignore what individual subscribers can add to the bottom line. One way is via a robust personal cloud offering that gives subscribers simply, easy and fast access to their data from all of their screens, including mobile phones, tablets, desktop and laptop computers, and even smart TVs.
The personal cloud market is expected to reach $8.9 billion by 2025 in the United States with an anticipated CAGR of 12% from 2020 through 2025, according to a recent Arthur D. Little analysis. It’s clearly an untapped source of revenue for several reasons – many of which are sweetened by 5G – and include:
Embracing low-storage devices. An operator personal cloud is an excellent option for cost-conscious mobile users who prefer to purchase less expensive, low-storage smartphones devices. Why? The low latency of 5G delivers what is essentially real-time accessibility to cloud-based data. This permits user offloading of data that normally would reside on a device but at a fraction of the cost of that high-storage device. It’s a win for subscribers watching their budget but desiring new 5G devices and a win for operators who gain personal cloud converts who choose well-priced smartphones and tablets.
Improving user cloud experience. The low latency of 5G also means almost instantaneous movement of data between a device and the cloud. According to Digital Trends report, 4G LTE networks have an average latency of around 50 milliseconds. 5G networks theoretically could drop that to 1 millisecond (though we likely won’t see that anytime soon). What this means is that users can upload or download files – even extremely large ones – as well as stream high-definition video directly from the cloud without irritating delays, buffering or time gaps. Reliable high speed backup of all types of content, efficient organization and super fast just in time retrieval are the new exciting possibilities with 5G. The icing on the cake is that personal clouds can be accessed from non-mobile connected devices, giving users access to their photos, videos, documents and more from laptops and smart TVs as well.
Shifting approach from data stored to data generated. One of the most exciting ways 5G can create more value for personal cloud offerings will occur when operators pivot from a data storage to data engagement mindset. Take the massive amounts of home and personal IoT data being generated and saved in the cloud. By applying real-time AI to that data and immediately returning real-time insights to the owner of the data – whether it’s a warning about a potential health crisis or frozen pipes in the basement, for example – operators will substantially increase the value of personal cloud to the subscribers when it is able to improve lives.
The signs are clear: The growing buzz around 5G combined with excitement surrounding the introduction of new 5G-enabled devices has rejuvenated mobile subscriber interest in how mobile network providers will leverage the new network technology. Operators today have an opportunity to claim their share of the personal cloud revenue via a 5G enhanced offering that delivers a top-notch user experience. To do so, they must act now.
Learn more about how the Synchronoss Personal Cloud delivers to operators new revenue streams and creates new, value-added experience for their subscribers.
View the Synchronoss Personal Cloud Video.