Telcos in the Metaverse: World Domination

Telcos in the metaverse

As slow as its development has been, the Metaverse is on its way to greatness. If you are struggling to wrap your head around this concept, here’s another way to think about the Metaverse: it’s a 3D rendering of earth where we, humans, go to live another life emulating the one we already are living. In fact, the Metaverse is set to have a “real estate” system, a retail system, and much more. Think Roblox. Yes, THAT Roblox. For the technology to function appropriately, it requires a solid foundation of connectivity. And that’s where telcos can swoop in and save the day. It also offers economic and strategic benefits for telcos actively participating in it.

The Stakes Are High

Providing an immersive user experience and real-time interactions and supporting millions of simultaneous users and content creators requires a lot in terms of latency, data rates, and computational power. Unfortunately, the current computing and communications infrastructure reality are not up to par with these requirements. This time is the prime one for telcos to take the throne in that regard, pushed by three major forces.

The Demand

There are currently roughly five billion people with access to the internet worldwide. Can you imagine the infrastructure required to host all of them in the Metaverse? To put things into perspective, early estimations set the number between 750 million USD and 13 trillion USD by 2030. As a result, the Metaverse has become a new market for telcos ready for the taking.

The Risk

The need in the market is glaringly apparent. So, if telcos don’t step up, others will. And we are not talking about some unknown startup from the middle of nowhere. We’re talking about tech giants with seemingly-bottomless wallets and a willingness to digitize everything and anything. Hyperscalers (i.e., Amazon Web Services (AWS) and Microsoft Azure) are on the heels of the companies that fail to guarantee the infrastructure.

The Consumer

Admittedly, the decision is a tough one to make and will need to be studied closely. Nevertheless, the numbers show that Metaverse products are already well into the mainstream. Have you met Gen Z? They are the future, a future heavily dependent on virtual and online shopping. In fact, based on an “Obsess” study, ‘The Metaverse Mindset: Consumer Shopping Insights,’ conducted in late December 2021, 75 percent of Gen Z virtual shoppers in the U.S. have already purchased a digital product within a video game. Contributing to the retail aspect of the Metaverse will connect telcos to the rising generations.

New Horizon for Telcos

Participating in the Metaverse has the potential to benefit telecom operators significantly. Through this virtual environment, they can improve customer experience, monetize investments through adjacent services, and increase operational efficiency. However, the Metaverse presents a distinct opportunity for telecom operators to play a more assertive role in the Metaverse value chain. Telecom companies can use emerging technologies like 5G, edge clouds, analytics, and artificial intelligence (AI) to collaborate with technology titans to co-create the Metaverse.

Human Interface Hardware

 Augmented reality (AR) and virtual reality (VR) headsets are essential for interacting with the Metaverse. So operators can take advantage of this opportunity to collaborate with device vendors and drive adoption by selling VR devices and connectivity services together, for instance.

Cloud Computing Services

Massive amounts of computing power, real-time rendering, and AI computing capabilities go into the Metaverse, relying upon Edge computing. Operators must have the right partnerships with specialist cloud providers to succeed.

Connectivity Provider

With 5G data speeds expected to reach multiple gigabits per second, latency will be extremely low, and reliability will improve. In addition, as 5G networks become commercially available, they will assist consumers and businesses in entering the Metaverse. Remember the incoming generational shift to 6G services and fiber connectivity.

Advanced Analytics for AI

The collection, storage, and repurposing of extensive data will be a topic of debate. As a result, operators will have numerous advantages when it comes to repurposing data to improve decision-making and create new demand scenarios. Telecom operators should invest in analytics and AI capabilities to boost revenue and identify potential monetization avenues.

Cyber Security, Privacy, and Trust

Consumers and businesses are becoming increasingly concerned about digital footprints and the integrity of personal data. Consumers trust operators as data protectors more than other types of TMT providers. As the Metaverse takes shape, operators should leverage their existing customer relationships to position themselves as identity management experts.

Metaverse Platforms

Many businesses are developing their own Metaverse platforms. The key to their success is creating engaging, themed experiences and events that encourage regular users to spend more time there and provide customized services for businesses and consumers. In addition, operators must be willing to invest in new Metaverse platforms. Accordingly, it will assist them in developing a more in-depth understanding of the demand scenarios and technical competencies that shape this long-term opportunity.

Retail in the Metaverse

Previous articles discussed the 5G-related telco-led initiative concerning the Metaverse and elaborated on the central role of telecom operators. Now, let’s talk retail and telcos.

The Environment

Not to go into the nitty-gritty of Metaverse Shopping, here’s a quick rundown. As we enter the digital age, brands must focus on creating emotionally appealing retail experiences, using sight and sound to create a realistic space in the Metaverse. It also entails devising clever strategies to incorporate taste, touch, and feel into the metaverse shopping experience. While this may appear to be a difficult task at first, it is nothing new in the real world. With Nike and Walmart taking some of the first steps into metaverse retail, it’s worth looking to them for guidance and tactics; attention to detail and a focus on providing an immersive experience will be critical to brands’ ability to create an immersive experience.

The Economy

Telecommunications companies are potential participants in the metaverse economy. They are ideal players in the metaverse domain due to their large subscriber base, ability to charge, bill, and collect payments, and ability to deliver any digital content to their users. Not only can they offer their own services and bundle them in the metaverse, but also handle transactions and provide the best experience to their metaverse subscribers.

Final Thoughts

The early bird gets the worm, and I cannot stress how this saying is essential in this instance. this situation is a race to pick up and dominate the metaverse infrastructure and fintech solutions. If they beat tech giants like Microsoft to the punch, they can go down in history as one of the main pillars of this century’s most outstanding social innovation. Their participation in this build will accelerate the adoption of 5G globally and the research into 6G. Theoretically speaking, if telcos managed to take care of the financial transactions of the virtual universe, it would push traditional banking out of the picture further.

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