Over the last couple of years, CES has been a central hub for all-things 5G. The hype has been building for years and as we approach CES 2020, you can be sure that there will be no shortage of 5G news once again.
But something is different for CES 2020. The 5G networks that have been promised in recent years are becoming realities, resulting in an even bigger focus from carriers, retailers, and OEMs at tradeshows like CES.
If you’re attending CES 2020, you have to cut through the 5G hype and figure out what will have the biggest impact on your business.
The Promises of 5G Connectivity
The shift from 4G LTE to 5G networks promises to bring “a quantum leap forward in terms of speed and throughput, supporting 10 GB per second of throughput, which is 1,000 times more than we have today.”
The dramatic improvements in speed in addition to significantly improved latency and reliability have tech companies searching for innovative ways to put these networks to good use. And CES is where they showcase the ideas. That’s why you’ll see a massive range of 5G connected devices on display—everything from smart watches to connected refrigerators, lights, vehicles, industrial equipment, components of smart cities, and beyond.
But no matter what kinds of unique devices emerge at CES 2020, the core business for carriers, retailers, and OEMs will continue to be smartphones. And with 5G coming to fruition, there’s a lucrative opportunity to capture trade-in revenue as people upgrade from their 4G LTE devices to ones that can support new networking capabilities.
Capitalizing on the 5G Opportunity
Despite years of 5G hype, there’s only a handful of devices that are currently capable of leveraging the new networks—all from Android manufacturers like Samsung, LG, Motorola, and Huawei.
You can bet that the market for 5G-capable devices will explode with options quickly as the networks roll out beyond test markets. Where does that leave your business as a carrier, retailer, or OEM?
The reality is that 5G handsets will be costly for consumers—as much as two-times the price of comparable 4G LTE models in some cases. Your customers are going to be looking for trade-in promotions that will help them make the jump. This presents a significant opportunity for carriers, retailers, and OEMs to maximize revenue in two ways:
- Sale of New Devices: Much like the promotional offers that come around the holiday season, a slate of trade-in promos for emerging 5G devices will help you capture new subscribers and reduce churn by getting consumers on installment plans.
- Secondary 4G LTE Devices: Just because new 5G devices are emerging doesn’t mean 4G LTE is going anywhere anytime soon. Even a decade after the release of 4G networks carriers are still in the process of phasing out 3G networks. As consumers trade up from 4G devices to 5G-capable devices, you can take the old devices and capture revenue opportunities in the secondary market. With such strong competition among carriers, retailers, and OEMs, the secondary market will continue to be a valuable revenue stream to maximize the bottom line.
The key to maximizing your revenue potential during this shift from 4G to 5G networks will be your ability to operate a smooth trade-in program. When your trade-in processes are a customer experience differentiator rather than a headache for customers, you’re more likely to win new subscribers and retain them even as competitors release aggressive promotions.
That’s why HYLA will be attending CES 2020. We’re here to help you cut to the core of 5G value and build trade-in programs that boost revenue—no matter what size carrier, retailer, or OEM you work for.
Want to meet up and talk about the near 5G future? Set up some time so we can chat at CES 2020. We hope to see you there!