Huawei reveals the secret to profit from 5G for telecom operators

Huawei believes that by focusing on these 4 key elements, network operators will generate growth opportunities while unlocking the potential of 5G and 5.5G.

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By the end of 2023, more than 300 commercial 5G networks have been deployed worldwide. 5G is growing at a scale of user base globally that is 7 times that of 4G during the same period.

Speaking at the “5G Beyond Growth – Breakthrough Growth with 5G” summit, Mr. Li Peng said, “5G is on the right track to achieve business success. After 5 years since commercialization began in 2019, there are more than 1.5 billion 5G users, while it took 9 years for 4G to achieve this reality. Currently, 20% of mobile subscriptions worldwide are using 5G, generating 30% of total mobile access traffic and contributing to 40% of mobile service revenue. In addition, 5.5G will continue to be commercialized in 2024; and when 5.5G, AI, and Cloud are combined, network operators can explore the potential of new applications”. Mr. Li Peng recommended that network operators worldwide focus on 4 factors:

High quality network is still the foundation of business success

Currently, mobile users are ready to purchase upgraded versions of mobile packages to enhance their usage experience if the network achieves high quality. Anticipated traffic volumes will increase significantly, allowing network operators to maximize value. This has led to an increasing number of network operators setting strategic goals in building high-quality 5G networks.

Some network operators in the Middle East have deployed Massive MIMO networks, delivering optimal experiences and driving successful deployment of 5G FWA. To date, 5G FWA has connected nearly 3 million households, becoming a strong revenue growth driver for network operators.

Mr. Li Peng delivers opening remarks at the summit within the framework of MWC 2024 event.


Business diversification maximizes the value of each bit

More than 20% of global 5G network operators have implemented a tiered pricing model. A network operator in Thailand recently introduced an additional feature called “5G Boost Mode,” allowing subscribers to select different speed tiers to meet their individual usage needs and help increase the Average Revenue Per User (ARPU) index by about 23%. Another network operator in China also popularizes a guaranteed transmission package, which ensures smooth streaming experience and commits to high resolution for livestreaming users, as well as help increase ARPU by over 70%.

New emerging services enable sustainable long-term growth

New services such as New Calling, Cloud Phones, and Glasses-free 3D are gaining increasing attention from users. New Calling with virtual avatar creation utility is becoming quite popular. Users are also willing to pay more for call services that provide real-time experiences.

5G is also being applied in many industries. In China, 5G Private networks have been commercialized in over 50,000 enterprises in more than 50 industries. The new strengths of 5.5G include low latency, precise positioning, and passive IoT, which are expected to create even more opportunities for network operators in the B2B market.

AI generation will usher the mobile industry into the era of comprehensive intelligence

According to IDC, AI mobile phones will reach a quantity of 170 million by 2024, accounting for 15% of the total number of smartphones shipped globally. The next-generation AI phones will have more powerful storage, display, and camera capabilities. The AI-generated applications in these phones will also consume hundreds of billions of GB of data, creating countless new growth opportunities for network operators.

SOURCEcafef
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