“<\/em>15% of enterprises are currently investing in 5G<\/a>, rising steeply to 69% within three years. Yet, less than half (48%) are confident they can transition to 5G-based Internet of Things (IoT), with 74% indicating that they need to overhaul the operating model to realise implementation,” the London-based advisory firm in a statement said.
The study was based on a survey of 1,000 organisations worldwide.
74% of the companies feel that 5G would enter the fabric of their business over the next five years, the finding said, adding that among those investing in 5G, 67% were either engaging in trials or in discussion with suppliers.
“Indian enterprises continue to adopt emerging technologies and scale ICT spending to fast-track digital transformation. In India, there is a notable change in the complexion of ICT spending, and IT services is set to account for 52% of total pie to touch $75 billion between 2019-23, growing at 8% CAGR,” Prashant Singhal<\/a>, Emerging Markets -Technology, Media and Telecom Leader, EY said.
Singhal further said that 5G and IoT would turbo charge the enterprise transformation journey.
5G-enabled digitalisation, according to him, is more than $25 billion opportunity by 2026 with nearly 45% of applications driven by Smart Cities<\/a> and Industry 4.0 use cases.
While the telecom sector plays a pivotal role in enabling the 5G revolution in India, the ongoing AGR issue has heightened market uncertainty posing threat to the operator dynamics and market construct, apart from adding woes to the already stretched balance sheets.
EY believes that the precarious situation calls for an immediate resolution not only to improve business viability but also reinvigorate industry sentiment and make the Indian telecom sector attractive again.
“India has the potential to catch-up in the global race on 5G - driving the ecosystem with a viable spectrum auction and favorable investment climate,” he added.
Singhal said that an early dialogue with enterprises to identify relevant use cases and create awareness on business benefits for telcos.
The next-generation technology adoption is led by the US with 19% currently investing compared with 13% in Europe and 10% in the Asia-Pacific.
“Enterprises are aware that 5G can fundamentally reshape their organizations. To succeed, they need to develop a road map that is aligned to the broader landscape of technology transformation, but anxieties persist around technology integration, maturity and cybersecurity,” Tom Loozen<\/a>, EY Global Telecommunications Sector Leader said.
The finding also revealed that forming the right partnerships could be the key to unlocking 5G potential.
60% of those surveyed indicate that their organisations were struggling to identify the right 5G vendor, and 67% say their vendor interactions to date have largely been transactional and tactical.
“It’s clear that enterprises now want consultative dialogue that delivers business outcomes through end-to-end solutions. 5G providers need to reinvent themselves as trusted partners, prioritizing access to an ecosystem of competencies that can deliver 5G capabilities at scale,” Adrian Baschnonga<\/a>, EY Global Telecommunications Lead Analyst said.
The energy (23%) and technology (22%) industries are currently 5G investment leaders, with health care (61%) and financial services (58%) organisations projected to emerge as the biggest investors within three years.
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