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– 5G 3 years = 4G 5 years, operators have achieved success after the first round of 5G deployment
BARCELONA, Spain, February 28, 2023 /PRNewswire/ — Huawei has convened the 5G Business Success Summit at this year’s Mobile World Congress (MWC). Peng Song, General Manager of Huawei ICT Strategy and Marketing, delivered a keynote address titled “Diverse pathways for 5G monetization, accelerating 5G business success.” In his speech, he noted that the achievements made by 5G in its first three years are equivalent to those achieved by 4G in its first five years, and that major operators are already celebrating the success of the first round of 5G development. , which has instilled a sense of certainty and confidence in the sector. So 5G will maintain this success if its value can be further unleashed in ToC, ToH and ToB sectors.
During his speech, Peng pointed out that the global user penetration rate of 5G in its first three years is equivalent to that of 4G in its first five years. Operators that have recorded 5G user penetration above 20% during the first round of rollout have seen significant mobile revenue growth. Meanwhile, devices, content, experience and business models are diversifying as more operators and partners embrace 5G. This shows that the market is shifting from risk-based to revenue-based decision-making to further ensure business success. Huawei found that rapid migration of 5G users and traffic is the key: if an operator were to migrate 30% of traffic to 5G eMBB in three years, it would take less than four years to see ROI. This duration would be even shorter if the operator also deployed FWA and ToB services.
ToC: Differentiating the experience is a new paradigm of network monetization
5G networks use powerful capabilities to offer a differentiated experience to different users. For example, operators can offer guaranteed downlink bit rates to VIP users and a good experience for uplink services. Operators in China have already begun to explore this new paradigm.
ToH: 5G FWA is a home broadband service with a fiber-like experience
By the end of 2022, 95 operators had commercially launched 5G FWA services for more than 10 million home users. With its rapid deployment, good experience, low cost and high energy efficiency, 5G FWA puts an end to old copper lines in developed markets and enables home broadband access in emerging markets. Operators in Europe, the Middle East and Africa have had excellent results.
ToB: 5G private networks are the key to exploring the digital blue ocean of companies
Peng believes that operators can establish extensive service connections with enterprises through 5G private networks, creating a market space for enterprise digital transformation that is three to 10 times larger than the market for private networks themselves. This will also boost sales of cloud services, data centers, F5G, and other value-added services. The current market for private 5G ToB networks outside of China is developing rapidly. In 2022 alone, the total number of networks built has doubled. This potential for the future is even greater.
Peng concluded his speech by adding that 5G is not only of economic value for operators, but also of tremendous social value. Huawei calls on global operators and industry partners to join its GUIDE business plan and further unlock the potential of “5Good to 5Great” 5G networks.
Supporting data: According to the latest GSMA and GSA statistics, as of December 2022, more than 240 5G networks have been put into commercial use worldwide, more than 1,700 different types of 5G terminals have been launched, and the number of 5G users had exceeded 1 billion. In addition, the ARPU of the world’s top 20 carriers had increased by 10%, which is 1% more than the global benchmark.
MWC Barcelona 2023 takes place from February 27 to March 2 in Barcelona, Spain. Huawei presents its products and solutions at stand 1H50 in Hall 1 of Fira Gran Vía. Together with global operators, industry professionals and opinion leaders, we delve into topics such as 5G business success, 5.5G opportunities, development green, digital transformation and our vision to use the GUIDE business model to lay the foundation for 5.5G and build on the success of 5G for even greater prosperity. For more information, please visit: https://carrier.huawei.com/cn/events/mwc….
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