Helping Network Operators Monetize 5G
The advent of 5G has marked a turning point in the telecommunications industry. With its high bandwidth and low latency, 5G has introduced a new horizon for a variety of connectivity areas that are driving new revenue streams for network operators — connectivity for people, for things, for vehicles, for industries and for the home. With over 1.2 billion 5G users worldwide, 5G is spearheading the development of the digital industry and enabling the digitalization of all industries, with the early adopters reaping the first wave of benefits.
Li Peng, Huawei's senior vice president and president of Carrier Business Group, said, "The future is now. New business scenarios for people, homes, businesses and vehicles are delivering new experiences. This is raising higher requirements for network capabilities. Enhanced network capabilities, like 10 Gbps downlink, 1 Gbps uplink and 100 billion IoT connections, are creating a vast market space in 5.5G for carriers."
Innovative services such as “New Calling” and cloud phones require faster data rates and lower latency. New Calling is a new generation of calling standards based on 5G networks that provide high-definition smooth video and real-time interaction for users. "With solid 5G networks and rapid user migration, the first wave of 5G operators have achieved good business results and realized large-scale monetization of eMBB services. Based on China's innovative practices, we find that operators can continuously explore 5G capabilities and monetize eMBB in depth. For example, operators can provide differentiated experience assurance for segmented live broadcast users and develop innovative services such as new calls and naked-eye 3D," said Liu Kang, president of Huawei’s Carrier BG marketing and solution sales department.
In addition, naked-eye 3D technology has significantly advanced in recent years, with the combination of optics technology, dynamic eye tracking and AI bringing about the birth of glasses-free 3D tablets. The traffic generated by naked-eye 3D content will see a 3- to 10-fold increase in network traffic compared with 2D. With 5G networks' low latency and high data transfer rates, this technology brings multi-sensory and realistic immersive experiences to consumers, which telecom operators can offer as a value-add service.
In the consumer market, skyrocketing demand for new experiences has led to a boom in innovative forms of content and applications, like smart home management and whole-house intelligence. This has prompted carriers to upgrade home networks that will deliver a bandwidth of 10 Gbps like private lines.
Pioneering Innovative Operations and Charting New Growth Curves
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Connecting Industries and Machines
Commercial 5G services were introduced to the market four years ago and have since been implemented in over 17,000 private network projects worldwide. This has led to both the revenue from 5G private networks and the number of industrial connections tripling. These services have enabled intelligent digital transformation in industries such as manufacturing, ports, mines, oil fields and healthcare, bringing about cost reductions and efficiency improvements.
In the industrial market, the expanding passive IoT market along with the requirement of higher uplink speeds by the Internet of Vehicles (IoV) have also paved the way for monetizing 5G. Industrial IoT, thanks to the ultra-reliable low latency communication (URLLC) feature of 5G, has led to real-time machine monitoring, predictive maintenance and autonomous robots becoming a reality.
Managed Network Solutions
Telecom operators are also providing “Network-as-a-Service” models, offering customized network solutions for businesses. At MWC, Huawei highlighted its digital managed network solution, which helps carriers transform from Internet service providers to managed service providers and seize new opportunities in digital transformation, thereby driving new growth. Digital managed network services (such as Managed LAN, Managed WAN, Managed Security and Managed DCN) on top of traditional IP private lines not only enable the rapid growth of these carriers' B2B services but also significantly improve the enterprise customer experience at lower service costs.
Li Peng emphasized the role of Huawei's 5G FWA Square solutions in monetizing 5G. This suite includes FWA Pro for ultrafast connectivity, FWA Lite for cost-effective connectivity and FWA Biz for highly reliable connectivity. These solutions can help operators meet varied user needs across different scenarios and expand the 5G FWA market.
In terms of global impact, China is leading the way in the 5G revolution. In 2022 alone, 5G directly contributed 1.45 trillion yuan to China's GDP. "5G is a win for both operators and consumers that has taken the mobile industry to the next level and enhanced user consumption through new experiences and applications,” stated Cao Ming, president of Huawei Wireless Solution.
The development of 5G is indeed revolutionizing the way we work and live. The monetization strategies used by network operators are not just about providing faster, more reliable connectivity but also about driving digital transformation across industries.