At MWC Shanghai 2024, Li Peng, Corporate Senior Vice President and President of ICT Sales & Service at Huawei, presented a keynote speech on how carriers can effectively maximise the value of 5.5G technology, which builds on the foundation of 5G.
Years of dedicated industry efforts have prepared networks, services, and the business ecosystem for the large-scale commercial implementation of 5.5G. Li believes that to maximise return on investment in 5.5G, carriers must innovate business models and integrate capabilities, focusing on providing a differentiated user experience.
“The mobile AI era is here,” said Li. “To stimulate new forms of untapped demand, carriers can integrate their network, cloud, and AI capabilities to deliver a differentiated range of connected experiences. Carriers should grasp this good opportunity to explore innovative business models, driving a shift from single-factor to multi-factor monetisation – from monetising traffic to monetising experience itself. This is key to creating greater value for users of all types and leading industry development in the mobile AI era.”
Li highlighted the importance of high-quality supply in stimulating new demand. He likened the current mobile industry to the aviation industry of the 1970s, when airlines began offering differentiated services by classifying seats into first class, business class, and economy, subsequently introducing personalised services such as airport lounges and third-party privileges. This marked the beginning of experience monetisation in the aviation sector.
The mobile communications industry has seen remarkable growth through continuous technological and business model innovation. According to Li, it is now time to focus on more innovative supply. As mobile communications technology advances to 5.5G, the industry should integrate network, Cloud, and AI capabilities to stimulate both new and latent demand among users. This will drive industry upgrades and foster robust, high-speed growth.
Different users have varying requirements for network experience. Business travellers may prioritise higher downlink speeds, while live streamers and gamers might focus more on uplink and network latency. 5.5G networks increase bandwidth by a factor of 10, enabling carriers to ensure a reliable connected experience anytime and anywhere through wireless QCI-based scheduling, guaranteed bit rate (GBR), and intelligent user and service evaluation via the core network’s Network Data Analytics Function (NWDAF). Carriers can create a variety of targeted packages for different user groups, offering personalised services that enhance revenue and customer loyalty, especially among high-end customers.
Li discussed how Cloud phones, powered by the high bandwidth and low latency of 5G networks and on-demand cloud resource deployment, can better address the needs of various users for real-time computing power, data isolation, and online collaboration.
He cited the example of China Mobile Zhejiang, which has introduced a Cloud phone package integrating computing, network, and cloud capabilities. Subscribers can access on-demand streaming and other member privileges on their virtual cloud devices. The carrier has also achieved multi-factor monetisation by offering 1 TB dedicated data plans with three different levels of computing power packages, and has profited from sponsored data plans by sharing third-party privileges.
5.5G enhances uplink and downlink speeds, reduces latency, improves positioning, and provides deterministic networking. Li explained that these capabilities can further enhance the over 30,000 industry-specific private networks already in place, extending network capabilities from auxiliary to core production systems and creating greater industrial value.
In addition to basic 5G network services, carriers can offer SLA-guaranteed services and value-added services such as reliable network design, intelligent edge services, and high-precision positioning. Li noted that 5.5G is particularly well-suited for train operations. With high-precision positioning in tunnels, alongside applications like 5G-powered automatic video inspection and AI-powered vehicle inspection, intelligent O&M can become a reality for all train lines.
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