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” Video Is the Vehicle for Telco Growth” Huawei and IHS Markit Release the Video as a Core Service and Mobile Video White Papers
[Barcelona, Spain, February 25, 2018] During the Mobile World Congress (MWC) 2018, Huawei held the Video Powers New Growth forum. At the forum, Huawei and IHS Markit jointly released two white papers – Video as a Core Service for Telcos (Video as a Core Service) and Mobile Video Opportunities for Operators (Mobile Video). These white papers showcase the value of video services to operators, and define the strategies and approaches for developing video services.
These white papers were developed through a collection of joint surveys and in-depth analysis by Huawei and IHS Markit over more than one year, as well as the innovations achieved alongside multiple leading telecom operators.
According to the Video as a Core Service white paper, video as a core service means that operators make video services a major value proposition that will drive the growth of their telecom business. The key is to include video services in their basic service packages to help expand new markets and drive new growth. The white paper analyzed the video service development of the top 50 fixed-first operators in terms of the number of video subscribers, and came to the conclusions mentioned above. As of the end of 2017, these top 50 fixed-first operators had 300 million video users, generating US$89.3 billion in revenue, a year-on-year increase of 8%. By analyzing the video services of leading operators, the white paper defines five strategic approaches to help operators achieve video business success: Bundled packages, unbundled services, multisource aggregation, purchase of high-quality and exclusive content, and delivering new service experiences.
The Mobile Video white paper analyzed the video services of the world’s top 25 mobile carriers in terms of revenues, five major regional mobile operators, and 200 OTT players. It also conducted an online survey targeting the video consumption behaviors of 3,000 users from six countries (the UK, Mexico, the UAE, Indonesia, India, and Turkey). The result shows that video traffic accounts for 50%–60% of the total traffic of mobile operators. Video has become a major service of mobile operators, and users see video experience as a major factor when choosing operators. Mobile operators make use of video services to reduce their user churn rate, drive traffic growth, and incubate new use cases. The white paper concludes by proposing four video business models of mobile operators: Directly monetized content, basic partnerships, bundled services, and data free services.
IHS Markit believes that operators enjoy an advantage in delivering guaranteed network and video experiences. They have enormous opportunities for monetizing the 4K ultra-HD experience and applying AR/VR in the 5G era. Videos will evolve to become a capability and will incubate more use cases such as live streaming, social networking, and video calls. The new market is waiting to be explored by operators.
Huawei understands what carriers require from video services and offers competitive hybrid video solutions, video platforms, and cloud services. More importantly, Huawei is committed to working with operators and partners to explore new markets and use cases. The ultimate goal is to achieve shared success with carrier customers and partners.
The white papers on Video as a Core Service and Mobile Video are available here.
MWC 2018 runs from February 26 to March 1 in Barcelona, Spain. Huawei is showcasing its products and solutions at booth 1J50 in Fira Gran Via Hall 1, booth 3130 in Hall 3, and the Innovation City zone in Hall 4. For more information, please visit: http://carrier.huawei.com/en/events/mwc2018