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China : Huawei Shares Views on "Embracing a Digital World and Driving Business Transformation Using the 4 MOREs Strategy" at HUGM2016.

The eighth Huawei User Group Meeting (HUGM) opened today at the Shanghai Expo Center. David Wang, President of Huawei Wireless Solution, gave a speech on "Embracing a Digital World and Driving Business Transformation Using the 4 MOREs Strategy". In his speech, David Wang proposed a digital business model for operators and shared his views on how operators use the 4 MOREs (More users, More traffic, More Value, and More Businesses) strategy to continuously boost data revenue and expand the business scope from B2C to B2X.

First of all, data revenue is a key ingredient for operators to achieve business successes during digital transformation in the MBB era. David Wang said: "Global statistics show that some operators have achieved double-digit revenue and profit growths over the past three years, and the proportion and growth rate of data revenue of all these operators were high. We have found that the proportion of MBB users and DOU have had great impacts on the data revenue of an operator. If the proportion of MBB users exceeds 50%, an operator can rapidly increase its data revenue. If the monthly DOU exceeds 2 GB, an operator needs to shift from extensive traffic operation to traffic monetization. "

Secondly, operators need to continuously develop B2C services, attract more users by providing connections (More Users), and monetize traffic (More Traffic) and value (More Value), in order to boost data revenue. David Wang said: "On one hand, operators in the initial stage of network and service development need to speed up the penetration of entry-level terminals and cultivate an environment for social media and digital services to attract more users. Operators whose network capabilities fail to meet service requirements must maximize network capabilities to release suppressed traffic and improve user experience. For light-load networks, operators must develop video, cloud storage, and other services to boost traffic and increase data revenue. On the other hand, operators should provide diversified data services and shift from Internet + to +Internet to monetize content. They can also try to transform volume-based tariff models to experience-based tariff models. This would change services from charging by the minute or MB/GB to charging according to user experience, resolving the problem of traffic volume growth without data revenue growth."

Thirdly, operators must expand the business scope horizontally and discover a new blue ocean of B2X (More Businesses). David Wang said: "In addition to continuously enhancing business capabilities in the traditional B2C segment, operators need to deploy WTTx to accelerate the expansion towards the B2H segment and connect the 300 million unconnected households. Operators can use their network advantages to explore new markets such as public safety (B2G), push-to-video, NB-IoT, and IoV (B2V). By 2020, IoV will enter an era of V2C (Vehicle to Cloud) + V2V (Vehicle to Vehicle) + V2I (Vehicle to Infrastructure) and connect more than 400 million vehicles, and the traffic volume per vehicle per month will reach 5 GB. B2X creates infinite possibilities, and a USD $1 trillion market has just been kicked off."

We have a long way to go in the grand scheme of exploring digital transformation. Technologies and networks aside, industries, businesses, and the entire ecosystems are also important topics in the MBB era. With a focus on the business development of operators, Huawei believes that operators need to continuously improve traffic monetization in the traditional B2C segment and bravely expand the business scope to B2X, in order to boost mobile data revenue and achieve business successes in the digital era.

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Publication:Mena Report
Date:Jul 2, 2016
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