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Communications Industry

The age of (r)evolution: the metaverse opportunity for CSPs

October 25, 2022 5-MINUTE READ

RESEARCH REPORT

In brief

  • Over the past 20 years the internet has reshaped our world; telcos have played a critical role as enablers, but not most of the value.
  • In a potential $13T global metaverse economy projected by 2030 (source: Citi),there are opportunities for growth across consumer and business service.
  • Communications service providers (CSPs) are at critical control points along the metaverse, giving them a unique position to create and capture value.
  • Can the metaverse and the evolution of the internet unlock the next wave of growth for the comms industry? Yes, but how much will vary by appetite.

Making the metaverse

The internet is being reshaped and evolving into a spectrum of digitally enhanced worlds, realities and business models known as the metaverse. This technology is unleashing our imagination to transform business as we know it. Simply put, the metaverse will fundamentally change how we live and work and act as a paradigm shift for the comms industry.

But what will the future hold in the metaverse, and for whom? As the pace of technological change continues to accelerate, the opportunities are boundless. The answer to that question will be determined by those willing to take bold steps to drive growth while remaining focused on continuing to deliver efficiencies in the core business to fund investment. Over investing in the wrong places now will not deliver business outcomes and put a stranglehold on future investment opportunities. In these early days, determining the right investment approach and success metrics is everything.

The connectivity imperative:

20x

Projected metaverse-driven data consumption over the next 10 years

Accenture research found that many CSPs recognize the metaverse opportunity, but few have turned their attention to position themselves as major players. In fact, 67% of CSPs believe there is metaverse potential for products and services, while 76% said they see significant opportunities for customer experience in the metaverse.

Communications Service Providers (CSPs) can seize the once-in-a-generation opportunity the metaverse offers by helping to shape its evolution.

Understanding the use cases and what they mean for CSPs

The markets are primed and ready to see what the metaverse brings. First impressions are coming from the consumer-level usage, where metaverse is blossoming in gaming, but offering strong vision of how it could be the future of our digital lives. But this vision stretches further. While consumer is the most apparent now, enterprise and government sector use cases are rapidly emerging, with innovation pushing the envelop of what metaverse for business could mean. As the metaverse continues to expand what the future of digital means, the businesses that will power it must position themselves today to take a differentiated stake in the future.

The scale of opportunity for the metaverse, for work, play, and business operations

2.5B

messages are exchanged daily on the metaverse platform, Roblox.

30%

reduction in production planning by BMW with 31+ metaverse factories.

150k

Accenture employees onboarded through our Nth floor.

Today, CSPs need to focus on a strategy that looks beyond the existing infrastructure space (devices, network and compute) and expands across metaverse growth areas to create new opportunities before others beat them to it.

CSPs should leverage their foundational strengths of network infrastructure, identity, data, partnerships and trusted customer relationships. Using these strengths for purposeful expansion into the metaverse will stake a differentiated position that shapes industry standards and enables better experiences. This position can also redefine brand image for CSPs to shift relationships with customers and change the way they monetize products and services.

While some metaverse use cases can ride on current networks, the expansive metaverse experiences of tomorrow cannot be delivered at scale on today’s infrastructure. This creates an opportunity for CSPs to differentiate their networks' capabilities.

Today, CSPs can prepare themselves for this once-in-a-generation shift through a strategic, long-term approach. Acting as champions for change and leading with purpose, CSPs will direct their focus to the four key areas we define as “the 4 Ps of metaverse-ready networks”: performance, platform, partnerships and products.

End-to-end connectivity performance

Future experience in the metaverse will require high quality connectivity as a fundamental feature; CSPs can start preparing their networks today.

Network as a platform

A strong connectivity foundation for the metaverse will require CSPs to expand and enhance everything: core OSS/BSS, orchestration, security, marketplaces, intelligence, etc.

Ecosystems partnerships

Connectivity for the metaverse cannot be delivered independently; it will take collaboration across multiple industries to realize its full potential. It requires a new type of ecosystem.

Network products

CSPs can start exploring enhancements in (QoS), service tiers, network slicing and edge services, etc. These, with Web 3.0 tech, will build new use cases, solutions and products.

As CSPs move to capture value in the metaverse, there will be tension points to tackle in this new world. CSPs should decide where to invest early by exploring new technologies and operating models in the metaverse while developing and proving commercial models across new services for monetization.

The rest will happen, whether CSPs are ready - or not - to seize the opportunities.

Meet the team

Brian Smyth

Managing Director – Communications & Media, Innovation
LinkedIn

Jefferson Wang

Senior Managing Director – Global Technology Convergence Lead
LinkedIn

Sergio Pareja

Senior Manager – Business Strategy, Comms & Media

Evan Kaverman

Senior Manager – Technology Consulting, Cloud First Networks

Twyla Hartnell

Innovation Lead Communications & Media – The Dock
LinkedIn

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