Insight
On day two of this year’s Mobile World Congress (MWC) in Shanghai, we heard from Li Peng, Corporate Senior Vice President and President of ICT Sales & Service at Huawei, as he shared his insights on how AI can be used to help monetise the 5G experience
Providing differentiated and personalised offerings is essential to be able to monetise 5G properly, but this is the same with monetising any industry. Li highlights how we can draw useful insights from the aviation industry…
Back in 1970, after the introduction of the Boeing 747, the aircrafts were now able to seat 350 passengers instead of the previous 150. However, this only led to a 22% increase in airline revenues, despite passenger capacity more than doubling. Li highlights how we can draw useful insights from the aviation industry, introducing business-class and first-class service for better growth.
These notions can be applied to the 5G industry – “high-quality supply is a key driver and creator of new demand,” says Li.
Since the 2G era, the mobile industry has made huge developments though innovation and continuous technological evolution in the 3G, 4G and 5G eras. 5G advanced can help meet consumer demand for improvement, but, says Li, “to realise the healthy and rapid growth of the mobile communications industry, we urgently need innovative supply to stimulate new and untapped demand of users.”
“Therefore, business model innovation is particularly urgent,” he confirmed.
Driving the innovation of 5G advanced technology and the network-cloud-AI synergy is essential here. Li presented the audience with some potential scenarios for this:
- Creating different packages for different consumer preferences
Users have many different types of requirements for their individual network experience. For example, business travellers who prioritise download speed, live streamers focusing on upload speeds, and gamers who focus on latency. As 5G advanced improves bandwidth capability tenfold, these different customer experiences can be supported by the network. More personalised services to the individual will allow higher prices to be charged, and mean the customer is more likely to be retained.
2. Monetisation through B2B scenarios
The faster upload and download speeds and low latency of 5G advanced mean that it can upgrade the 30,000 private networks that already exist. Using this example in the train industry, this results in additions such as AI vehicle detection applications being added. Therefore, more intelligent operation and maintenance of the entire train line can take place, improving overall efficiency by 30%. These value-added scenarios for businesses can be packaged up and monetised.
The session concludes by emphasising how carriers are able to provide differentiated experience services for users to be able to be fully monetise 5G advanced, and lead the industry in the development of mobile AI. The movement is taking off – over 60 carriers and partners have announced 5G advanced commercial plans, and over 30 have competed technical verification.
“Huawei is willing to work with global carriers and partners to embrace 5G-A, accelerate capability convergence and model innovation, and stride to a new era of experience monetization,” concluded Li.
