By mid-2024, North America continued to dominate the global 5G landscape, with 5G accounting for over 55% of connections in the region. This rapid adoption underscores 5G's critical role in driving GDP growth and enabling transformative applications.
Mobile operators worldwide are projected to spend USD 180 billion in capital expenditures (capex) in 2025, focusing on expanding 5G networks, improving energy efficiency, and phasing out legacy 2G and 3G technologies. In the U.S. and Canada, operators are concentrating heavily on standalone 5G architecture, which unlocks new monetization opportunities by enabling more sophisticated use cases for industries and consumers alike.
The shift toward diversified services and consumption patterns is prompting operators worldwide to leverage 5G's multi-dimensional capabilities. Many are introducing tailored service packages to meet the unique demands of various customer segments, while also exploring new 5G monetization models to enhance user experiences.
This trend of differentiated connectivity is set to redefine how service providers cater to evolving consumer needs, with targeted investments in enhanced network performance, coverage, and availability.
“The shift toward diversified services and consumption patterns is prompting operators worldwide to leverage 5G's multi-dimensional capabilities”
Enterprise Gains with Custom 5G Offerings
In North America, private 5G networks tailored to enterprise needs are emerging as a key monetization trend for operators. These networks provide businesses with high bandwidth, low latency, and customizable features, creating lucrative opportunities in industrial IoT, smart manufacturing, and logistics. By addressing sector-specific demands, telecom operators can tap into growing enterprise revenues.
Key technologies driving these advancements include network slicing, multi-access edge computing (MEC), and fixed wireless access (FWA). For instance, T-Mobile uses slicing for enhanced video communication, while partnerships with hyperscalers like AWS, Google Cloud, and Microsoft Azure enable MEC capabilities for IoT applications. However, operators face challenges as hyperscalers and OEMs capture a significant share of this revenue, often directly partnering with enterprises for private networks.
Notably, operators like TELUS and Cisco are making strides in connected car solutions by leveraging TELUS’ 5G SA network and Cisco’s IoT Control Center to offer telematics, infotainment, and subscription-based Wi-Fi services. This partnership showcases how private 5G networks can support innovative business models, benefiting automotive OEMs and end users alike.
Network slicing is another vital component, enabling operators to deliver tailored services across industries such as healthcare, IoT, and automotive. This approach provides dynamic service options and new pricing models, supported by advancements in core and radio network architecture. TELUS, for example, uses Ericsson’s dual-mode 5G Core to co-host 4G and 5G networks, facilitating applications in cloud gaming, augmented reality, and public safety.
As the ecosystem matures, telecom operators must refine their strategies to capture a larger share of enterprise revenues, balancing partnerships with hyperscalers while maximizing their unique network capabilities.
“Telecom operators must refine their strategies to capture a larger share of enterprise revenues”
The Rise of 5G FWA
Fixed Wireless Access (FWA) is emerging as a transformative solution in the U.S. broadband market, providing operators with a significant 5G monetization opportunity. Unlike traditional fiber deployments, FWA offers a faster, more cost-effective means to deliver high-speed internet, particularly in underserved suburban and rural areas.
Operators like T-Mobile and Verizon have led the charge, with their FWA services driving broadband subscriber growth and outpacing traditional cable providers. Government initiatives, including funding programs and financial assistance through initiatives like the Affordable Connectivity Program, have further boosted FWA adoption by offering discounted pricing to underserved households.
Consumer interest in 5G FWA is growing due to its affordability, faster speeds, and broader coverage compared to legacy broadband services. Enterprises, too, are embracing FWA for its flexibility, scalable connectivity, and suitability for remote operations. Vendors like Nokia are tailoring their strategies to attract these segments by bundling services, introducing competitive pricing, and investing in innovative Customer Premises Equipment (CPE).
The U.S. has become a global leader in 5G FWA deployment, showcasing how mobile operators can disrupt fixed broadband markets with minimal incremental investment. Since 2021, U.S. operators have added millions of FWA subscribers while maintaining strong mobile network performance through efficient spectrum use and traffic management.
“The U.S. has become a global leader in 5G FWA deployment, showcasing how mobile operators can disrupt fixed broadband markets with minimal incremental investment”
5G Advanced and Standalone Networks
As 5G technology continues to evolve, operators are focusing more on monetizing next-gen services such as 5G Advanced, which promises faster speeds, lower latency, and enhanced user experiences.
Through 2030, 5G Standalone (5G SA) and 5G Advanced will be key priorities for CSPs focusing on more value-driven services instead of relying on data volume. According to the Ericsson Mobility Report (November 2024), 5G Advanced is poised to redefine network capabilities, extending the forecast for deployment until 2030.
In the U.S., T-Mobile has achieved 4.3 Gbps download speeds on a 5G SA network, collaborating with Ericsson and Qualcomm. Verizon and AT&T are also making strides in 5G SA deployment, with Verizon moving commercial traffic to its converged 5G core in early 2024 to facilitate network slicing and improve efficiencies. In Canada, Telus and Rogers are advancing their 5G SA networks, with Rogers conducting successful 5G network slicing tests in major cities.
The Power of Network APIs
Network APIs are emerging as a critical tool for unlocking 5G monetization opportunities. By exposing network functions through standardized APIs, operators can assist developers in creating innovative applications for consumers, enterprises, and industrial sectors. To achieve this at scale, partnerships between operators and channel partners are vital.
North American operators are exploring various routes to market, collaborating with hyperscalers, CPaaS suppliers, and network infrastructure vendors to bring their APIs to developers. Over time, these partnerships will evolve, with deeper engagement between operators, channel partners, and developers to accelerate the creation of new services. Successful API exposure will be measured by usage rates and how effectively operators monetize these capabilities.
Nokia’s recent acquisition of Rapid, a former unicorn, highlights the growing focus on API-driven 5G monetization. Beyond external developer collaboration, operators also aim to leverage APIs internally, empowering their teams to innovate and create new services using network capabilities.
Additionally, a global consortium of telecom giants, including Verizon, T-Mobile, Deutsche Telekom, and others, is working together to integrate network APIs globally, ensuring that new applications are compatible with any network and can be deployed quickly.
As this ecosystem matures, network APIs will become a central pillar in the telecom industry’s shift towards value-driven services, opening new avenues for both internal innovation and external collaboration.
“North American operators are exploring various routes to market, collaborating with hyperscalers, CPaaS suppliers, and network infrastructure vendors to bring their APIs to developers”
Overcoming Monetization Challenges in Telecom’s 5G Era
As telecom operators evolve from traditional service providers to technology-driven companies, the rollout of 5G presents significant opportunities to introduce advanced services, such as AI, cloud solutions, automation, and content delivery.
To thrive in this new landscape, telecom companies must adopt innovative business models that can fully capitalize on the growing enterprise market. Moreover, the successful monetization of 5G will not be limited to network deployment alone.
Operators will need to build new capabilities to fully harness the power of emerging technologies. The ability to develop these new assets and effectively manage them will be critical to unlocking new revenue streams and staying competitive in an increasingly digital world.
Previous Insights:
Pursuing 5G Monetization Strategies
Four 5G Business Opportunities for CSPs
Canada and the US: North America’s Powerhouses in AI Leadership
