Unleash the Potential of Personal Mobile Business: How to Grow Carrier Revenue

To fully realize the potential value of personal mobile services, carriers must optimize their business model for revenue growth, their investment structure for improved efficiency, and the experience they offer to mobile users.

February 25, 2019

5 Min Read
Unleash the Potential of Personal Mobile Business:  How to Grow Carrier Revenue

Over the past 30 years, the global personal mobile business has proliferated. Yet there are still 2.5 billion people around the world without a mobile connection, and 720 million people not covered by mobile networks. The digital divide problem that plagues the world is still unsolved, and there remains a huge space for market development in personal mobile business.

At the same time, carriers face new challenges in the new era of their personal mobile business – slowed revenue growth from 2C services, low migration efficiency of mobile broadband users, and sharp increases in data traffic usage. Carriers lack new business models to monetize traffic. How can they solve the dilemma of increasing traffic without revenue growth?

To fully uncover the potential value of personal mobile services, carriers must optimize their business model for revenue growth, their investment structure for improved efficiency, and their experience offered to mobile users.

Figure 1:

Business model optimization
Huawei suggests that carriers build end-to-end digitalized business solutions that cover strategy, market, business, operation, and network to maximize three aspects value:

  • Maximized user value
    To increase revenue and improve efficiency of personal mobile services, carriers need to further explore user value. Huawei has streamlined the business (Business Support System data domain), operation (Operation Support System data domain), and network domains (network management system data domain). The Digitalized Customer Journey uses cross-domain big data analysis and data modeling. The entire process optimization from market strategy selection, precise user identification, entry-level devices, real-time precision marketing, and channel efficiency improvement helps carriers attract more users to mobile broadband, and effectively improves subscriber ARPU.

    • Data value monetization
      Carriers cannot just consider only reducing price while increasing data volume. Huawei believes in establishing complete closed-loop traffic management processes to achieve a positive business cycle of traffic monetization. To help carriers address this issue, the personal mobile business solution emphasizes visual, predictable, and manageable traffic control.

      1) Traffic visualization: Understands service development trends, user habits, and user experience changes in real time to accurately and efficiently discover new trends and features in traffic monetization.

      2) Traffic prediction: Uses machine learning algorithms to analyze services, user behaviors, and cell load, and flexibly implements high-precision traffic prediction of different scenarios and network grids.

      3) Yield management: Provides comprehensive revenue, cost, and financial models to help carriers perform multi-dimensional simulation calculation, analyze traffic revenue inflection points, and predict business profit and loss (EBITDA and FCF) to manage revenue for traffic monetization.

      Traditional traffic monetization has only two dimensions: price and quantity. To stay relevant, carriers need to add new dimensions for traffic monetization, such as user and service experience. Huawei believes the Traffic + Experience operation model to be a breakthrough in future mobile broadband business innovation. Different users and services vary in their requirements for mobile broadband experience. Huawei has thus built a differentiated user/service experience solution to monetize improved experience metrics such as latency, speed, and content quality.

    • Digital service innovation
      In the mobile Internet era, diverse services and applications the real weapon for attracting users and creating value. For more and better services and applications, carriers need a digital service ecosystem with strong support for application and content developers. Huawei's software-as-a-service (SaaS) model helps carriers quickly build new digital service capabilities, shorten service deployment, and create more 2C2B service scenarios to monetize basic telco infrastructure.

      Investment Structure Optimization
      Carriers urgently need to improve their investment efficiency. They must maximize ROI through precise investment planning, improve their network investment structure through innovative products and solutions, maximize the value of their spectrum and site assets, and obtain higher asset-per-unit benefits.

    • Precise network investment planning
      With the slowdown in revenue growth of their personal mobile business, carriers focus on effectiveness and return of their investment. Where is investment more valuable? Where does traffic grow faster? Carriers must set scenario-based targets and select the optimal solution. They have to make scientific decisions for faster profits.

      Huawei provides precise insight, prediction, and planning, as well as ROI evaluation based on business-network synergy for closed-loop management, helping carriers effectively resolve problems of ROI, network quality improvement, and user experience competition encountered when planning in different scenarios.

    • Spectrum efficiency improvement
      With the popularization of mobile broadband (MBB) and the development of new services, better user experience is increasingly important for mobile networks. However, spectrum resources are scarce, spectrum prices are high, and mobile networks with multiple frequency bands and modes have coexisted for a long time. Carriers face great difficulties in improving user experience. Huawei's continuously innovative product solutions help operators significantly improve spectrum efficiency, capacity, and user experience. For example, the CloudAIR solution can change the fixed allocation mode of air interface resources on traditional networks. The SuperBAND solution enables multi-band and network-level spectrum utilization maximization in both horizontal (intra-frequency bands) and vertical (inter-frequency bands) dimensions. The Smart Massive MIMO solution enables simple, intelligent, and energy-saving high-performance networks.

    • Scenario-based Site Solution
      To help carriers solve problems of site acquisition, network deployment, and construction costs, Huawei has launched its full-scenario suite of site solutions, including Macro Site, Micro Site, Pole Site, and digital indoor system (DIS) solutions. These solutions adapt to all deployment scenarios, meet requirements of wireless network deployment, and optimize TCO and ROI of the entire site. The innovative RuralStar solution provides a cost-effective and efficient coverage solution for remote areas. The enhanced RuralStar Lite solution reduces the 4G coverage cost by 60% and shortens the deployment time to less than 5 days. Carriers can now quickly provide wireless coverage to very remote areas at extremely low cost, while exploring new user dividends.

      Success in Global Deployment
      Over the past few years, Huawei's personal mobile business solutions have been deployed in all parts of the world.

      In emerging markets such as Indonesia, Thailand, and Nigeria, Huawei helped hundreds of millions of users upgrade their mobile broadband services, greatly improving the 4G penetration rate, and increasing the revenue per user. Huawei has also worked with more than 100 carriers around the world to deploy innovative RuralStar solutions in remote areas, bringing mobile internet to tens of millions of unconnected users and bridging the digital divide.

      Today, the world is about to embrace a new digital economy. Huawei will continue to invest more in the personal mobile field, and work with carriers and partners to provide high-quality products and services for individual mobile users.

      Huawei Technologies Co. Ltd

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