Telecoms support the Metaverse: Establishing a strong digital foundation

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  Quantumrun Foresight
• May 29, 2024

Insight summary

The Metaverse is transforming how we interact, learn, and work by offering immersive digital experiences through augmented and virtual reality (AR/VR), with leading tech companies exploring its vast potential. The success of this digital realm relies heavily on the capabilities of 5G networks and other advanced telecom technologies, which are crucial for delivering seamless experiences. Collaborative efforts between tech giants and telecommunications companies are essential to developing the infrastructure to support this ambitious digital future, promising significant social and economic impacts.

Telecoms supporting the metaverse context

The Metaverse, envisioned as a spatial Internet, is a three-dimensional space that offers fully immersive experiences through AR/VR and mixed reality (MR). These technologies promise to transform mundane activities into extraordinary digital experiences, extending from gaming and social interactions to advanced industrial manufacturing and AI training platforms. Companies like Meta (formerly Facebook) and tech giants like Nvidia and Siemens are at the forefront, exploring the platform's potential to enhance consumer engagement and revolutionize industrial processes.

However, delivering a seamless, high-bandwidth, and low-latency experience depends on advanced telecommunications technology, with 5G networks playing a pivotal role. According to telco Ericsson, 5G's ability to substantially improve data rates, reliability, and latency makes it a critical component of the Metaverse's functionality. Despite these advancements, further network capacity and architecture enhancements are necessary to meet the Metaverse's demanding requirements. This necessity has spurred collaborations across the technology and telecommunication sectors, aiming to address these challenges through innovations like edge-cloud rendering and Mobile Edge Computing (MEC), which bring computational resources closer to the user.

In partnership with telecommunications giants like Telefónica and Verizon, Meta is spearheading efforts to create a reliable Metaverse ecosystem. These partnerships are exploring new networking and cloud technologies essential for the platform, emphasizing the need for industry-wide cooperation. The establishment of Metaverse Innovation Hubs and 5G laboratories exemplifies the proactive steps being taken to ensure the network and device readiness for this ambitious digital future. 

Disruptive impact

One significant area of impact is the acceleration of digital inclusivity and accessibility. As telcos enhance their networks, high-speed, low-latency Internet could become more widely available, bridging the digital divide. This democratization of access would enable individuals in remote or underserved areas to participate fully in the digital economy, access educational resources, and engage in social activities within the Metaverse.

Telecoms' innovation in the Metaverse infrastructure will likely spur new business models and revenue streams. For instance, the evolution of virtual real estate, digital goods, and services opens up novel opportunities for companies and entrepreneurs. Telcos themselves may find lucrative niches in offering bespoke connectivity solutions, specialized hosting services for Metaverse platforms, and advanced security services to protect virtual assets and transactions. 

Furthermore, nations with advanced telecommunications infrastructure supporting real-time virtual environments may gain a competitive edge in attracting tech talent, investments, and pioneering digital enterprises. This scenario underscores the importance of policy frameworks, international cooperation, and investments in next-generation network technologies. Governments and regulatory bodies may need to collaborate closely with telcos and other stakeholders to ensure that the growth of the Metaverse is supported by strong, secure, and equitable telecommunications infrastructure.

Implications of telecoms supporting the metaverse

Wider implications of telecoms supporting the metaverse may include: 

• Enhanced remote education experiences, making learning more interactive and accessible to students in underserved regions.


• Increased telecommuting options, reducing urban congestion and contributing to lower carbon emissions from reduced daily commutes.


• New digital economies within the metaverse, offering novel employment and entrepreneurial opportunities.


• Shifts in real estate markets as businesses and individuals reevaluate the need for physical spaces in favor of virtual environments.


• Governments implementing regulations to safeguard users' privacy and security in increasingly immersive digital spaces.


• Potential for increased screen time and sedentary behavior, raising concerns about physical health and wellness.


• Cultural shifts as social interactions, entertainment, and commerce increasingly take place in virtual environments, possibly leading to changes in societal norms and values.


• Strains on existing telecommunications infrastructure, prompting significant investments in network upgrades and expansions to meet the demands of data-intensive metaverse applications.

Questions to consider

• How could the development of the metaverse influence your access to global markets and cultural exchanges?


• How will enhanced virtual environments in the Metaverse change your approach to education and lifelong learning?