5G Business Success is Accelerating
[Bangkok, Thailand, October 25, 2022] The 5G Business Success Summit was successfully held today during the 13th Global Mobile Broadband Forum. Peng Song, President of Huawei ICT Strategy and Marketing, delivered an opening speech on “5G Business Success is Accelerating”, and summarized that under the guidance of G.U.I.D.E. business blueprint, building a green and sustainable 5G network featuring ultimate Gigaverse experience, ultra-automation and easy maintenance, collaborative connection and computing services, differentiated multi-dimensional business monetization, and sustainable development. The three-year exploration has enabled carriers to accumulate business success cases and accelerate 5G network monetization, enabling a booming trend of 5G business acceleration.
Peng Song, President of Huawei ICT Strategy and Marketing, delivered an opening speech
Peng Song pointed out that 5G ToC is fundamental for carriers to monetize 5G investments. Business success is traceable. Existing video services bring higher HD experience through 5G, and XR expand new video experience and further increase the traffic requirements of 5G users. In addition, the new capabilities of 5G networks bring new pricing dimensions for operators. Both livestreaming brings uplink capability requirements and latency experience which gamers prefer, all of which have become trump cards for operators to monetize 5G and have been verified in mass business practices and market applications around the world. For example, nearly 40% of 5G carriers around the world have bundled 5G packages with OTT content, which stimulates the DoU growth and solidifies the foundation for package upgrade and ARPU increase.
Compared with 4G FWA, 5G ToH enables new business scenarios, including premium home and rate-based business models. The premium home model supports concurrent service such as gaming, high-quality video, and remote office, and monetizes network capabilities from multiple perspectives, such as downlink, uplink, and latency. The rate-based business models provides high-quality and high-priced services and provides different levels of rate guarantee. Abundant business success practices prove that FWA is one of the services with the fastest return on investment (ROI) in 5G. The continuous improvement of industry capabilities will further enrich the business monetization capabilities of global carriers' FWA services.
The 5G ToB development is growing rapidly around the world. According to the operators' financial reports, GSA reports and third-party data, the 5G ToB service revenue of Chinese carriers will exceed CNY9 billion this year, with an annual growth rate of over 200%, and the 5G private network scale of carriers outside China has increased by more than 100%. Carriers can leverage the advantages of extensive networks to quickly provide 5G private lines and 5G WAN virtual private networks to adapt to industries requiring extensive coverage, such as energy, logistics, and smart cities. Local private networks provide high-SLA networks to meet service requirements and are widely used in smart factories, ports, and mines.
In conclusion, Peng said: Huawei will work with global 5G operators to share industry success experience, continuously accelerate ToC network monetization, enrich new application scenarios of ToH, and expand ToB's new blue ocean, enable carriers achieve the momentum of a positive 5G business cycle.