5G Is Bringing Business Networking, Communication to “New Level”

Business networks and communications are already moving to wireless networks and the cloud, and that will only increase as new applications for enterprise are built around the speed and capabilities of 5G.

Börje Ekholm, CEO of Ericsson, outlined these developments Nov. 22 in a conference call that followed the announcement that the company has entered into an agreement to acquire Vonage. The closing of the deal is expected in the first half of 2022.

“5G is one of the largest innovation platforms ever,” Ekholm said during the conference call. “We expect that almost all interactions, like calling a taxi or getting a bank security number, will require embedded communication. 5G brings this to a whole new level. Almost every workflow and process will use some kind of communication and network API.”

5G Takes It to a Whole New Level

He explained that by bringing together Ericsson’s wireless technology that underlies 5G networks with Vonage’s cloud-based communications, the acquisition will make it easier to developers to create applications for businesses using 5G. This will be aided by the fact that the existing Vonage Communications Platform (VCP) serves more than 1 million developers globally.

These developers will have access to a joint global platform that will make it easier for them to access the capabilities of 5G networks and incorporate them into their applications for enterprises.

“We see this as a fundamental path to digitalized enterprises,” Ekholm said. “It’s all about supporting the developers here in creating new and premium user experiences using advanced 5G APIs. So, in addition to consumer use cases, 5G was designed and built for enterprises. We see with 5G can make wireless the primary access technology for enterprises.”

The VCP includes application programming interfaces (APIs) that enable developers to embed messaging, voice and video into applications and products, and the addition of access to the power of 5G networks will allow new applications and use cases.

Ensuring Quality in Future Use Cases

Looking ahead, Ekholm and Vonage CEO Rory Read said that they expect that these APIs combined with 5G will help ensure speed, reliability and quality in use cases such as enterprise communication and productivity, remote health, immersive virtual education, autonomous vehicles, real-time gaming and augmented and extended reality — all over wireless networks.

As more enterprises move onto wireless networks, traffic will rise and the total addressable market for Ericsson’s 5G technology will increase. Ericsson has previously addressed another segment of enterprise by expanding its presence in wireless edge solutions, dedicated networks, cellular IoT and mission-critical networks. Here, Ericsson expects to see growth of 20% to 30% annually.

“Vonage, as a leader in the business communication platform business, provides us with an opportunity to address the enterprise market and create scale in terms of customers and developer market access,” Ekholm said. “We intend to invest to accelerate Vonage’s current business and drive synergies in support of the current business plan. Then, together, we will elevate the 5G ecosystem by developing the global network platform for the full benefit of [communication service providers], developers and businesses.”