Metaverse: How Roblox-Inspired Companies Are Bringing the Internet to Life

Telecommunications companies are looking to build a platform based on the metaverse, an idea that inspired “Ready Player One” and online games by market darlings such as Roblox Corp. Early-stage examples include virtual and augmented reality headsets or glasses that provide immersive experiences. Advanced versions - still years away pending super-fast wireless data speeds - combine multiple technologies like holograms to bring the internet to life: 3D avatars of people working, interacting and relaxing in digital replicas of offices, factories and leisure venues.

Recognizing the business potential, telcos ranging from China Mobile Ltd. to Verizon Communications Inc. and SK Telecom Co. are jumping into the fray - alongside online-game developers - to build a “killer app” that could resemble a blend of today’s social media and e-commerce, but on steroids. Operators could earn a third more in revenue, potentially reaching $712 billion by 2030, if they introduce such innovative 5G applications on top of just laying pipes, according to a research by Ericsson AB’s research arm Consumer & IndustryLab.

“If you do nothing, you will stay on a flat curve revenue wise,” said Stockholm-based Pernilla Jonsson, head of Consumer & IndustryLab. “We see the potential. It will be very interesting to see how this plays out. Who will actually be the winners of the metaverse is still a very open question.”

Jonsson expects the development of the metaverse to be gradual, starting with those headsets and glasses piggybacking on smartphone connections. Cutting-edge metaverse applications are still at the conceptual stage. If they do become reality, virtual meetings and shopping online would feel like real-life activities, with digital copies of almost everything that also reflect real world changes in real time through advanced 3D image capturing.

China Mobile, the world’s No. 1 carrier by subscribers, Verizon, the largest U.S. operator and South Korea’s leader SK Telecom are among those building platforms based on virtual or mixed reality, a term that means blending the digital world with real-life environments.

While most current metaverse platforms are online video games, “what 5G is going to do is really turn that metaverse experience into something that reaches out into your daily life,” Sarah Gilarsky, a business development lead for Verizon’s next-generation entertainment partnerships, said at a February panel discussion by the company’s research arm.

SK Telecom wants to create a virtual economy based on its platform, said Cho Ik-hwan, SK Telecom’s vice president and head of mixed reality development, where people not only seek leisure and entertainment, but also trade and develop businesses.

“The metaverse is our future business model. It will be our core business platform,” Cho said. “We want to create a new kind of economic system. A very giant, very virtual economic system.”

Last year, 113 mobile operators across the world launched their 5G networks in 48 countries, according to industry research platform GSMA Intelligence, which predicts that global carriers will spend $720 billion on the networks between 2021 and 2025, or $144 billion a year on average. Slow adoption of 5G by users and lack of a wide range of applications mean a long slog to recover the hefty costs.

In China and South Korea, two of the earliest countries to commercialize 5G, average revenue growth at the six dominant operators has slowed to 15% in the seven years through 2020, versus almost 50% in the previous four years. For instance, China Mobile spent more than 102 billion yuan ($15.7 billion) on 5G last year, but revenue from 5G businesses was just 87 billion yuan in the period, according to Bloomberg calculations.

“It would be so difficult for the telcos to recoup their huge investment just by selling 5G data packages to subscribers,” said Wilson Chow, global technology, media and telecommunications industry leader at PwC China. More carriers will participate in the metaverse space going forward, he said.

Subscribe to our YouTube channel

Subscribe to our newest channel Quicktake Explained

Bloomberg Quicktake brings you live global news and original shows spanning business, technology, politics and culture. Make sense of the stories changing your business and your world.

To watch complete coverage on Bloomberg Quicktake 24/7, visit or watch on Apple TV, Roku, Samsung Smart TV, Fire TV and Android TV on the Bloomberg app.

Have a story to tell? Fill out this survey for a chance to have it featured on Bloomberg Quicktake

Connect with us on…

Breaking News on YouTube