Ready for the metaverse: How can the telecommunications industry help to make extended reality an actual reality?

The world is on the cusp of major technological disruption on a scale not seen since the internet first took off over three decades ago. This technological disruption, when it happens, will be driven by major advances including 5G, artificial intelligence (AI), cloud computing, edge computing, web3 and the metaverse with its mixed reality capabilities. It will enable the merger of our physical and virtual worlds to bring us a new, powerful, immersive experience.

We explored the implications of this disruption when I moderated a panel discussion at this week’s Mobile World Congress in Barcelona. Three industry experts joined me on the panel, sharing their own experiences of applying extended reality, AI, 5G and other immersive technologies to their businesses. But, given the nature of the event, the biggest question we discussed was this: What does the emergence of the metaverse mean for the telecommunications industry?

There’s a good reason why this question is worthy of consideration. For a long time, 5G has been an answer looking for a problem to solve. Now, with the emergence of the metaverse, 5G may have the opportunity to do just that. The metaverse requires reliable and fast connectivity, with high bandwidth and low latency to allow smooth and seamless interaction. The speed and latency offered by 5G can be that essential building block for the metaverse to achieve its potential.

The requirement for 5G provides significant opportunities for telcos to play a bigger role in the metaverse value chain . By providing powerful connectivity and edge computing, they could position themselves as co-creators of the metaverse alongside the technology giants and online game developers. So, what needs to happen for telcos to fulfil this role?

The future is immersive

Perhaps the best place to start is by considering the vast possibilities that the metaverse presents for our society. By taking us from a 2D world into a spatial, immersive world, it’s going to change how we play, how we work, and even how we live. Going forward, we are going to interact with each other in what could feel like a gaming environment, moving from place to place and enjoying experiences in an immersive world of virtual reality (VR).

Probably an even bigger disruption than virtual reality is augmented reality (AR). With AR, we will wear smart glasses that analyze our surroundings for us and provide us with useful digital information that relates directly to where we are and what we are doing. For example, when we go to the grocery store, we could use our smart glasses to easily locate food that meets our specific dietary needs, such as gluten free. This year, we expect to see the launch of some attractively designed augmented reality glasses – and while they’ll probably be expensive at first, the history of technology suggests the price will almost inevitably come down.?

Now for the challenges …

While the metaverse offers a wealth of possibilities, we still need to create the foundation upon which it will be based. To do this, some important building blocks must be in place. Firstly, there needs to be substantial investments in creating the infrastructure and devices to make the metaverse work. Telcos will need to consider how to provide high-speed, low-latency coverage over vast areas. There’s also a requirement for the whole tech and telco ecosystem to play their part in establishing interoperability and open standards so that developers can create metaverse worlds that work together, allowing users, in turn, to work, play, and earn in different worlds seamlessly.

What’s more, the metaverse is essentially vulnerable to the same governance challenges as the current web. Some of the biggest challenges include online safety and harassment (particularly when it comes to children), intellectual property theft, fraud, phishing, ransomware, and cybercrime, as well as mental health issues arising from digital addiction. Telcos can play a role in relation to cybersecurity, by providing advanced encryption technology or authentication to verify authorized users. Executives in all companies and industry bodies that have an interest in co-creating the metaverse can work closely with regulators to establish appropriate legislation. They can also work with boards of directors to set codes of conduct and establish appropriate risk monitoring systems.

Where do we go from here?

There are many challenges to overcome before extended reality becomes an actual reality – and before telcos can fulfil their increasingly important role in the metaverse value chain.?Telcos can be a major player in the ecosystem which includes the major tech companies who are investing heavily in these emerging technologies alongside organizations big and small from industries such as retail, financial services, entertainment, healthcare and government. An important recent development was the launch of the Metaverse Standards Forum in 2022. The forum now has over 2,300 organizations as members and aims to foster the development of interoperable standards for an open metaverse.

So, what does all this mean for telcos? Clearly, telcos can provide the high bandwidth for an immersive experience that can accommodate millions of people. To do this, however, they need to invest. They also need other companies to invest in devices and infrastructure, and they need to collaborate with other metaverse players to get industry standards and regulation in place.

So are the telcos making the investments to lay the foundation for a metaverse world where AR, VR, AI, 5G and edge computing play a far bigger role in our future lives? The answer this week was a resounding “Yes” to the opportunity and “Now” as the time to invest. The immersive metaverse is coming and the telcos are already securing their place in the emerging world ahead.

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.