By Marcelo Malizia, strategic marketing manager 5G Core and Aziz Koleilat, solution marketer in business area networks at Ericsson

We all use mobile networks differently, yet we all receive the same mobile service. 5G technology is on the cusp of changing that by offering new capabilities like consistent low latency, higher bitrates and wider coverage – and, perhaps most intriguingly, the ability to adapt these functionalities for different needs and applications. When this competence is unlocked, a valuable business opportunity emerges.

So how do you deliver differentiated connectivity for different needs while ensuring fair access for all?

5G is unique. Its flexible and programmable characteristics allow the network to meet distinct requirements. By incorporating network slicing capabilities, you can separate various segments of the network to cater to different needs. This is done by converting an existing network into multiple networks on top of a shared infrastructure. Each network is designed to serve a defined purpose.

What does it take to achieve differentiated connectivity?

Many 5G set-ups reuse 4G infrastructure but, to use the full features of 5G for differentiated connectivity and achieve higher energy efficiency and performance, you need a complete, end-to-end 5G network – also known as 5G Standalone. The full potential of this technology can only be realised with 5G Standalone.

Because of the programmable capabilities of 5G networks, mobile connectivity will match consumer needs (not just their limits). Think of it like a restaurant where the dishes are services and the ingredients are mobile connectivity characteristics.

Today, CSPs offer a buffet of dishes at a fixed price but some dishes are eaten by most consumers while others are barely touched.

Because it’s a buffet, there’s a significant amount of food wastage. As a result, some customers experience disappointment due to the quality of food while others consume either more or less than what they paid for. Overall, this is a “best effort” type of restaurant offering too much at satisfactory quality.

Things are changing with 5G networks offering the possibility to launch bistro versions of the restaurant and provide a menu to consumers instead.

This restaurant offers options to cater to the needs of every kind of customer, ensuring a consistent level of quality with all dishes. Additionally, portion sizes are tailored to match customer appetites with a corresponding price tag aligned accordingly. This is a differentiated restaurant, with food or connectivity performance levels better suited to serving different needs, capturing the right value from each plate.

What does differentiated connectivity look like? A better fit!

While 5G uptake has increased and mobile network data traffic has grown by 25 percent between 2023 and 2024, most consumers are generally not hitting their data limits. With differentiated connectivity, consumer patterns can be better matched.

Some people want to live stream concerts in 4K while others want to just enjoy the music. This means capacity must also be managed as individuals want different things from the mobile network. By strategising differentiated connectivity in the right way, consumers subscribe to what they’ll use from the network while gaining access to innovative new applications built on this new functionality.

Keeping connectivity fair

Connectivity is a human right because it underpins so many critical functions of society and everyday life. Differentiating networks shouldn’t pose any risk to anyone seeking access. Regulators must ensure fair treatment of these networks, like mobile connectivity, to promote innovation and growth in industries and society. The key is optimising network use and opening a new layer of connectivity,  (not restricting consumers). Differentiation – not discrimination!

Users must be able to access the content, applications and services they choose while CSPs need flexibility to differentiate and innovate to deliver services that meet the needs of different users and use cases.

Realising the full potential of this technology requires a balanced approach to regulation that ensures everyone can enjoy the full benefits of differentiated connectivity – with the right service, at the right time, in the right place, for the right price. This can also drive further investment and innovation to meet the increasingly demanding and dynamic needs of consumers.

An industry-wide opportunity

Consider the business opportunity if developers and businesses could offer guaranteed, secure and robust mobile connectivity tailored to specific needs. Revolutionising mobile connectivity in such a drastic way will spur the emergence of new start-ups and drive enterprise growth as they seize new opportunities. This will enable the transition from conventional best-effort approaches to business models centred around the value of service differentiation.

The shift in the industry is already happening. In collaboration with Ericsson, leading service providers are embracing the journey uncovering new business opportunities through differentiated connectivity.