CSPs need to start being innovation enablers and stop being technology integrators
Hamdy Farid is the vice president of Nokia’s Business Applications unit and focuses on how communications service providers (CSPs) and enterprises can unlock the value of their network investments through secure, intelligent automation. Born in Egypt, he graduated in computer engineering from Alexandria University, and also holds a Business Degree from Ottawa University. Today he lives in Ottawa, Canada.
George Malim: Everyone talks about the promise of 5G but it’s heavily reliant on CSPs transforming not only the network but their systems so they can engage in new business models. How does Nokia see CSPs transforming to maximise their 5G opportunities?
Hamdy Farid: If you look at recent work Bell Labs Consulting has done to analyse the potential additional value created by 5G, it’s close to US$2 trillion – and CSPs have a great chance of capturing this opportunity to increase their revenues four-fold. However, to achieve that, CSPs need to start being innovation enablers and stop being technology integrators. That’s what will make a big difference and we are already seeing companies like Rakuten and Dish doing this.
Let’s not pretend any of this is easy, these are big transformations and historically digital transformation projects had a 30% chance of success. With 5G, the transformation should be driven by business objectives rather than technology. Having those business objectives as the primary goal and using technologies such as public cloud, platform-as-a-service and SaaS will ensure the success of digital transformation initiatives.
This is not about transforming what we used to do yesterday and doing things in a slightly more efficient way. This is about how to change in order to provide the new consumer and enterprise services needed by end users.