TELECOMS AND VIRTUAL REALITY: How telecoms can move beyond connectivity and up the VR value chain to grab a slice of the $24 billion revenue opportunity by 2026

This is a preview of the Telecoms and Virtual Reality research report from Business Insider Intelligence.
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While VR headset adoption has lagged behind expectations due to technical issues, the market is now on the cusp of a transformation thanks to the promise of 5G.

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The new standard's technical capabilities, like low latency, lightning-fast speeds, and support for edge computing, will help VR overcome the barriers that have inhibited its adoption. As a result, explosive growth in the VR market is expected to coincide with the rollout of 5G networks.

As the chief growth engine for the VR market, telecoms have an opportunity to monetize the immersive tech beyond simply providing the connectivity for it.

Since the VR market is still relatively nascent, early moving telecoms have an opportunity to step in and revolutionize the VR monetization paradigm before the technology is mainstream. Network operators have a particular advantage in becoming VR solution creators and enablers because they have early access to 5G networks. That gives them a head start on prototyping 5G-dependent VR hardware, content, and services. Telecoms that pursue this route have a significant opportunity: By 2026, the annual revenue for telecoms as solution creators for the immersive technology segment is expected to reach $24 billion, per Ericsson.

In Telecoms and Virtual Reality, Business Insider Intelligence examines how telecoms can expand beyond connectivity to become solution creators in the VR ecosystem. The report explores how telecoms will play a pivotal role in advancing the VR market, identifies what's to be gained for telecoms that move up the VR value chain, and explores emerging VR monetization models.

Here are some of the key takeaways of the report:

Since content will remain a chief barrier to VR uptake, telecoms should drive value beyond connectivity in the VR ecosystem by expanding to become solution creators.
Creating VR solutions can help operators stay ahead of the digital revolution as convergence reshapes the industry and become more attractive partners for enterprises.
As 5G spreads and the VR ecosystem takes off, new monetization models will become possible for telecoms as well — like the solutions enabler model.

In full, the report:

Examines how 5G connectivity will help VR reach its potential.
Explores how telecoms can move up the VR value chain.
Identifies consumer and enterprise VR use cases that present the largest opportunities in the near- to mid-term.

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