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Build a Fully Connected, Intelligent Emerging Market

News from Huawei
News from Huawei
News from Huawei
3/1/2018
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1. EMERGING MARKET MACROECONOMICS AND ICT INDUSTRY

Emerging markets continue their march forward and are becoming the bulwark of the global economy. Roughly, 80-85% of the world’s population can be found in emerging markets, and they contribute to almost three quarters of global GDP growth. In 2017, global economic growth has reached 3%, which is significant compared to the 2.6% in 2016.

The digital economy is expanding in several ways. Global production of ICT goods and services now amounts to an estimated 6.5% of global gross domestic product (GDP), and some 100 million people are employed in the ICT services sector alone. The “digital spillover” effects are increasingly changing all parts of the economy.

Connectivity has been developing fast globally, in year 2017, more than 450 million people connected to mobile Internet, more than 30 million households connected to home broadband. However, there are still 3 billion people in the world who still cannot enjoy the mobile Internet, even 870 million of them do not have cell phones and 1.1 billion households do not have home broadband.

However, due to the lack of infrastructure and strong business foundation in emerging markets, developing ICT sectors face challenges. Operators frequently come across difficulties in acquiring site infrastructure, fiber optic resources, and high cost of spectrum resources, etc. At the same time, to keep sustainable growth, operators require the development more data revenues streams. For that, they need content such as video, music, and games to grow their user base and revenue from data.

2. EMERGING MARKET ECOSYSTEM

A strong ecosystem leverages the rapid growth of the ICT industry. This includes infrastructure supply, regulatory environments, industry sector participation, business operations, and system and device provisioning. A healthy ecosystem for energizing business is not built by a single party – it needs collaboration from the regulators, stakeholders, industry partners, operators, and suppliers.

Infrastructure providers from all industries need to open up and proactively help supply utilities such as transportation, electrical grid, and facilities. For example, Italy’s utility Enel and state lender CDP established OpEn Fiber to deploy fiber optic networks throughout the country.

Regulators need to balance and orchestrate regulations to ensure spectrum availability, service authorization, telecom taxation, and demand for digital social awareness. Malaysia has initiated High Speed Broadband (HSBB), a government program to make high-speed Internet accessible and affordable to every citizen. The Indonesian government is working on the Indonesia Broadband Plan (IBP) to ensure high-speed fixed-line connectivity across the country, alongside mobile data services offered by mobile operators. In Ghana, the government worked with the Alliance for Affordable Internet (A4AI) to cut mobile phone taxes, which led to rapid Mobile Broadband (MBB) penetration.

Operators need to provide affordable, valued, and convenient digital services that offer the best user experience and improve the quality of digital life. For example, Safaricom M-PESA has lifted 2% of Kenyan households out of extreme poverty. The economic impact of MPESA is mostly seen through its 1.8% contribution to the GDP.

Stakeholders and partners from all industries need to develop profitable business models and encourage investment by providing demand. In Ghana, MTN takes coverage rural with Ghana Infrastructure Fund for Electronic Communications (GIFEC), extending mobile coverage across the country.

System and device suppliers need to keep innovating, and providing agile solutions and affordable devices that are optimized to every scenario.

The obstacles to unlocking opportunities include resource availability, operational efficiency, and long period of Return on Investment (ROI). It takes a combined effort to remove these blocks and together build a fully connected, intelligent world.

3. HUAWEI'S ICT VISION AND STRATEGY

To enable operators and partners to seize opportunities in emerging digital economies, Huawei’s strategic approach has three pillars: supporting national ICT policies, building a healthy ecosystem, and creating end-to-end business solutions.

Huawei works proactively with countries to develop their national ICT plans as well as refine a roadmap relevant to the market and society, in both the short and long term.

Another core strategy centers on building a sustainable ecosystem to facilitate the digital transformation of the telecom industry. Huawei’s expertise has supported operators in leveraging their market resources to benefit all stakeholders and industry partners. Huawei has achieved significant progress in site, device, and FTTx alliances, and bridged the gap between affordable devices and content providers.

Huawei aims to maximize operator business value and unleash business potential through innovative solutions that leverage the most valuable operator assets, spectrum, site facilities, subscribers, and services. Huawei’s business methodology features investment efficiency improvement by facilitating spectrum utilization and agile site deployment, and brings revenue growth by maximizing user value and innovative digital services.

Huawei CloudAIR2.0, nTnR, multi-sector, and multi-channel solutions enable spectrum efficiency improvement. Agile site solutions, including PoleStar, TubeStar, RuralStar2.0, and Indoor Coverage Digitalization Solution are adapted to all deployment scenarios to optimize overall site TCO and ROI.

By leveraging Big Data to accurately identify potential customers and high-value users, Huawei’s innovative DSP and SmartCare solutions help operators gain new customers and migrate existing ones to new services. With outstanding global practical experience, Huawei helps operators effectively accelerate revenue growth.

The home broadband solutions WTTx and FTTx enable operators to rapidly deploy home broadband services, provide seamless connection with household Wi-Fi, and lay the foundation for other services such as smart home solutions.

Huawei provides business and network consulting services to address operator business needs, while putting processes in place to ensure well-managed product offerings. With highly efficient and innovative products and solutions, Huawei supports operators in deploying and maintaining affordable networks.

Data source: GSMA, ITU, UNCTAD (United Nations Conference on Trade and Development), World

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