The Economics of 5G: Shifting from Revenue-per-User to Revenue-per-Machine

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Citations (Scopus)

Abstract

This paper introduces the term ARPM (Average-Revenue-Per-Machine), as the forthcoming 5G will also have a machine orientation, not only a human one. From the economic perspective, such a new term will have implications for how service operators value their 5G customers. The number of machines will be important in reflecting the commercial success of a company. This paper argues that there are three strategic implications of this new term. First, the determining factors of commercial success are the type of applications, type of sector and number of machines. Second, machines may behave either as autonomous customers, or as digital slaves of the human subscribers. Third, the Quality of Experience perspective is strongly associated with the generation of smart data, supported by advanced sensors and robust algorithms. The more specialized the machines, the higher the economic value generated, and the more machines satisfactory can be upgraded.

Original languageEnglish
Title of host publicationISCIT 2018 - 18th International Symposium on Communication and Information Technology
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages191-194
Number of pages4
ISBN (Electronic)9781538684580
DOIs
Publication statusPublished - 24 Dec 2018
Event18th International Symposium on Communication and Information Technology, ISCIT 2018 - Bangkok, Thailand
Duration: 26 Sep 201829 Sep 2018

Publication series

NameISCIT 2018 - 18th International Symposium on Communication and Information Technology

Conference

Conference18th International Symposium on Communication and Information Technology, ISCIT 2018
CountryThailand
CityBangkok
Period26/09/1829/09/18

Keywords

  • 5G
  • ARPU
  • Economics
  • Revenue-per-machine

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