The introduction of 5G signifies a change in the way telecom companies may make money, not merely an increase in speed. New business models are made possible by the 5G core (5GC), which was constructed using cloud-native concepts and modular service capabilities. For the first time, operators may now provide specialised, adaptable network services to a wide range of sectors instead of just selling bandwidth and data plans.
From Platforms to Pipes:
Operators in earlier versions mostly served as “data pipes,” granting access but nothing else. This is altered by the 5G core, which makes it possible to automate, slice, and combine networks with third-party apps through APIs. With services catered to the particular needs of industries like healthcare, automotive, manufacturing, and entertainment, operators may now serve as platform providers. This platform strategy makes value-based pricing possible. One client may pay less for best-effort connectivity, while another may pay more for a dedicated network slice with assured performance, such as a company that requires ultra-low latency for real-time operations.
See also: Apple Teleport: Understanding Apple’s Teleport Technology
NaaS, or network-as-a-service:
One significant change made possible by the 5G core is the rise of Network-as-a-Service. Without having to construct or maintain their own infrastructure, businesses may use this paradigm to subscribe to virtual network slices with certain service-level agreements (SLAs). Businesses benefit from flexible connectivity choices, while operators receive access to a new source of recurring income. These services may be modular or packaged. A logistics business may, for instance, purchase a connection package that offers low-latency data transfer, real-time position monitoring, and integrated cybersecurity features—all of which are provided across a specially designed network slice.
Exposure to APIs and Developer Ecosystems:
The use of APIs to make network capabilities available to outside developers presents another source of income. Developers may create cutting-edge apps that connect to the 5G core by using programmable interfaces to access features like QoS management, location tracking, and user authentication. Like cloud providers, operators might charge for these APIs on a per-call or per-usage basis. Consider this as transforming the network into an app store for connectivity, fostering a thriving ecosystem where developers and entrepreneurs can collaborate to create services while operators benefit from platform usage.
SLAs and Enterprise Integration:
Lastly, by further integrating with company activities, operators might generate income. Previously technical back-end issues, SLAs for latency, uptime, and throughput are now monetizable assets. Businesses are prepared to pay for performance guarantees, particularly in mission-critical settings like financial trading platforms, healthcare, and autonomous car coordination.
Conclusion: As competition heats up and traditional revenue from voice and data flattens, operators must look beyond consumer markets. The flexibility of the 5G core enables a more dynamic pricing strategy based on service quality, use case, and industry demand. Forward-thinking operators are already investing in partnerships with cloud providers, edge computing vendors, and software companies to deliver full-stack solutions. By embracing these new revenue models, telecom providers can evolve into digital service enablers—capable of driving not just connectivity, but transformation across sectors. The key to success lies in rethinking the business model as much as the technology behind it.
