Huawei’s David Wang Says Value-Oriented Network Construction Will Reshape Operator Businesses
[Xi'an, China, July 4, 2017] At the ninth Huawei User Group Meeting, David Wang, Huawei's President of Products & Solutions, said: "To shift from an 'investment-driven' to a 'value-driven' business model, operators need to adopt a value-oriented approach when planning and constructing networks. This can help them reshape their businesses and create more value."
Digital transformation is driving sweeping changes across the ICT industry. Services and business models are rapidly evolving, injecting new vitality into the entire industry. Operator businesses are increasingly integrating with other industries, and boundaries between businesses are becoming a thing of the past. Along with enormous opportunities, digital transformation also presents major uncertainties and challenges. Network resources are underutilized and it is increasingly difficult to roll out new service models.
"The traditional technology-oriented network construction model cannot continue to support the growing needs of operators,” noted Wang. “The key for operators to succeed is to adopt a value-oriented network construction model to reshape their businesses."
David Wang addressing the ninth Huawei User Group Meeting
There are two defining features of a value-oriented network construction model. First, big data technology becomes a part of business planning and network construction, with specific services provided for high-value areas and end users. The right network technology and network construction solution are chosen based on existing network resources, with targeted network upgrades and optimization to ensure higher resource utilization and more rapid service provisioning. Second, business becomes service-driven rather than technology-driven. Business needs and network data are assessed through correlation analysis and integrated planning based on operators' general business strategy and differentiated product and service strategies to support targeted business investment. Value-oriented networks ultimately enable the highest returns on investment (ROI) and highest network efficiency.
According to Wang: "Operators need a complete business enabling system to construct value-oriented networks. We have tailored analysis models based on massive amounts of data on business, the market, existing networks, and the evolution of technology. With these models targeting specific business scenarios, we have created a value-oriented network construction enabling platform."
"Over the past two years, Huawei has explored and engaged significantly with global operators based on this platform to help them construct value-oriented networks."
In B2C scenarios, Huawei's value-oriented network construction enabling system helps operators accurately identify high-value end users, develop a targeted network coverage plan for high-value areas, and attract high-value end users to migrate to high-value services like VoLTE and converged video through robust product and service capabilities.
In B2H scenarios, Huawei's enablement system for value-oriented network construction critically analyzes operators' existing network resources and the value index of specific areas. This enables operators to customize their broadband network deployment solutions (such as FTTx and WTTx) and achieve the highest ROI.
In B2B scenarios, Huawei's value-oriented network construction enabling system provides operators with differentiated network construction solutions that offer the highest ROI, including private lines for OTNs, MPLS VPNs, and the Internet, based on their existing network resources. These solutions aim to satisfy users' needs for ultra-low latency, rapid service provisioning, and flexible and on-demand services in B2B scenarios. They also support innovation in operators' B2B businesses.
Wang concluded his speech saying, "Huawei will continue to optimize its value-oriented network construction enabling system, allowing global operators to achieve higher ROI and network efficiency. We will also introduce cloud computing, SDN, NFV, and other emerging technologies into network enabling systems geared to business needs. This will help operators build All-Cloud networks that are agile, intelligent, highly efficient, open, and enable them to achieve business success."
