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Telcos investing in VRAR to hit revenue streams beyond 5G

Telcos are becoming interested in the potential revenue streams related to virtual and augmented reality (VRAR), since it is not only a vehicle for 5G monetization, but can also bring growth opportunities in connectivity, content innovation and service platforms, states a leading data and analytics company.

According to some latest reports, states that despite robust momentum on the supply side, the VRAR market is still emerging, with the penetration of VRAR headsets very low relative to other computing devices.

One of the Research Expert says that: “Telcos have an important role in helping VRAR services as providers of broadband and mobile network services, but we see them beginning to explore revenue opportunities in VRAR that are beyond 5G data and connectivity, with some top players entering key segments of the VRAR supply chain in the past two years.” One such example is, Take Verizon that has made acquisitions in VRAR content platforms, while SK Telecom is creating its own, or, AT&T that is investing to develop compelling VR experiences and AR apps and Orange is taking steps to increase its involvement across the board in devices, platforms, services and original content.

The rising demand for VRAR experiences will definitely place formidable pressure on telecom networks however. While smartphone augmented reality (AR) apps such as Pokémon Go can be handled by the existing mobile broadband infrastructure, immersive experiences demand much more bandwidth capacity.  Discussions with industry players revealed a wide range of expectations on VRAR’s impact on telco network traffic, with nearly half expecting a traffic increase by more than 40% by 2025.  This is driving telcos to support for the impact with aggressive network upgrades and 5G rollout initiatives.

Research Expert gives the conclusion that: “VRAR to increase their digital services imprint and discover new revenue streams according to Telcos opportunity, but success in VRAR will need a long-term vision. Telcos involved in gaining ground in the space must be prepared to show their network readiness in order to satisfy the bandwidth demands of VRAR experiences, and meet the speed and latency requirements.”

“Additionally, cross-industry partnerships will be key to driving user volume and content creation in the VRAR space, and telcos should work with partners in delivering high-quality VRAR experiences, content and tools.”

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