The advent of the 5G era has given birth to a new era of Internet of Everything. In this wave of digital economy dominated by networking, digitalization, and intelligence, the three major operators are competing in the new track of user experience by accelerating the construction of 5G networks and expanding emerging services. Who can meet the needs of users to the greatest extent will win the favor of users.
The commercial use of 5G accelerates digital transformation
5G networks bring new experiences such as high speed, large connections, and low latency, and have become an important infrastructure to promote digital transformation. The three major operators have accelerated the construction of 5G base stations, expanded 5G coverage, and provided high-quality network support for various industries.
According to data from the Ministry of Industry and Information Technology, by the end of 2022, the three operators had opened more than 2.3 million 5G base stations. China Mobile has 920,000 5G base stations, and China Telecom and China Unicom have opened 750,000 and 630,000 5G base stations respectively. Through joint construction and sharing, the three operators have effectively alleviated the pressure on network resources and capabilities, and won the first opportunity for 5G development.
Carriers are actively launching innovative 5G applications to help industries upgrade digitally. Taking China Mobile as an example, as of the first half of 2022, it has more than 4,400 5G private network projects, and 5G private network revenue increased by 223% year-on-year. In key industries such as mining, iron and steel, and electric power, 5G applications have achieved remarkable results, driving significant improvements in production efficiency and economic benefits.
Emerging business has become a new growth point
In the face of sluggish growth in traditional services such as mobile communications, operators have shifted their strategic focus to emerging services such as cloud computing, big data, and the Internet of Things (IoT) to explore new revenue streams. Differentiated services have become a key means of attracting users.
According to data from the Ministry of Industry and Information Technology, in the first three quarters of 2022, the emerging business revenue of the three major operators reached 270.2 billion yuan, a year-on-year increase of 19.8%, accounting for 21.1% of telecom business revenue. The growth rate of cloud computing and big data business reached 35% and 37.1% respectively, and the revenue of Internet of Things business increased by 24.1% year-on-year, becoming an important engine for the growth of telecom business revenue.
Taking China Telecom as an example, its "computing, network, digital intelligence" business achieved revenue of 23.2 billion yuan, accounting for 26.1% of its main business income. China Telecom is accelerating the deployment of emerging fields such as artificial intelligence and edge computing, providing customized solutions for enterprises and facilitating the digital transformation of industries.
Technological innovation enhances user experience
Carriers are actively using cutting-edge technologies such as artificial intelligence (AI) and virtual reality (VR) to optimize network architecture, improve network quality and coverage, and provide users with the ultimate experience.
The rise of generative artificial intelligence (GenAI) has brought new development opportunities to operators. GenAI can be used for innovative applications such as video and autonomous driving, and operators are expected to reap new value returns. The surge in demand for computing power from large AI models will also directly drive the growth of operators' IDC and cloud computing services.
The development of virtual reality (VR) technology also brings new opportunities for operators. An Internet company uses VR technology to realize the online viewing of offline listings, combined with AI technology to provide intelligent explanations, and bring users an immersive experience. With the help of innovative technologies such as VR, operators can empower traditional industries and explore new business growth points.
Focus on personalized service
Carriers provide customized solutions based on user needs, build an integrated online and offline service system, and improve user stickiness and experience perception.
Taking Xpeng Motors as an example, it provides users with an "integrated, multi-touch" service experience through the new retail model of "self-built and self-operated + authorized operation, 2S + 2S, online + offline". Users can place orders online and pick up goods in offline stores, achieving a unified price, sales process and service standards across the country.
Operators also focus on synergy with upstream and downstream enterprises to build healthier partnerships. China Mobile collaborates with suppliers online to establish a private network operation platform to provide one-stop services. Through close collaboration with partners, operators can provide users with a more complete and efficient service experience.
In the face of increasingly fierce competition, the three major operators are competing in the new track of user experience through digital transformation, innovation and development, and service optimization. Who can meet the needs of users to the greatest extent will win the favor of users and the initiative of future development.