[XGNews]: How does 5g cross the commercial Rift Valley? Huawei Dingyun mentioned three key factors: continuous coverage, package design and cross generation experience

The following is the [XGNews]: How does 5g cross the commercial Rift Valley? Huawei Dingyun mentioned three key factors: continuous coverage, package design and cross generation experience recommended by xgapn.com.

News on the afternoon of October 14 (Jiang junmu) “for the 5g industry, the issue we need to discuss is not ‘whether to deploy 5g’, but ‘whether we can realize commercial value from 5g development’.” Ding Yun, managing director of Huawei and President of BG, operator, said at the 12th global mobile broadband Forum (mbbf).

He pointed out that in countries and regions where 5g has developed rapidly, operators who have invested heavily in 5g have achieved remarkable commercial returns, and 5g has become a new engine for operator revenue and profit growth. For example, in less than 18 months, more than one million 5g base stations have been deployed. Chinese operators achieved a revenue growth of 13% and a profit growth of 11% in the first half of this year. The same story also takes place in countries such as South Korea and Kuwait.

“As long as enough users use 5g, 5g user penetration is high enough, which will be reflected in the commercial value. According to the innovation diffusion theory, once it reaches the critical point of 20%, it will enter the stage of rapid growth. From the perspective of 5g user penetration in China, South Korea and other countries, without exception, it exceeds the critical point of 20%, so as to realize the commercial value of 5g.” Ding Yun explained.

How can operators achieve rapid growth in user penetration and traffic? From the successful practice of operators, Huawei has summarized three key elements.

First, quickly complete the national continuous coverage and provide a consistent user experience. Kuwait zain and Saudi Arabia Telecom (STC) combine the distribution of value users to identify traffic highlands and value areas, form continuous coverage and obtain potential high-value users. Next, make steady progress, realize continuous national coverage within 18 months, provide users with 5g best experience, and make Kuwait rank among the top cities in oklaa global evaluation.

Second, flexible package design brings a win-win situation. Although the price of 5g package is higher than that of 4G, it also significantly improves the data traffic, which can obtain higher user ARPU for operators and significantly reduce the cost per GB of traffic for users.

Third, take Gigabit cross generation experience as the standard to promote the continuous evolution of the network. The continuous increase in the number of individual users and FWA users has led to the rapid growth of network traffic. Operators can recover their investment in a short time, so as to continue to accelerate network construction by adding new NR carriers and SA evolution, forming a spiral development pattern of user growth, business return and network construction.

“At present, the penetration rate of 5g users in Kuwait has exceeded the critical point of 20%, and the traffic proportion has reached more than 30%. To sum up in one sentence, through high-quality 5g network, accelerate user migration and traffic growth, and realize a positive business cycle,” said Ding Yun.

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