[MWC On-site] Huawei "Seize 5.5G Opportunity... Focus on High Quality, Monetization, and AI"

President Li Peng Discusses 5G Business Success Strategies
New Services and 5G Applications Across Various Industries
Global AI Phone Shipments Expected to Reach 170 Million Units This Year

Huawei discussed ways to create new growth opportunities through 5.5G at the mobile expo 'MWC 2024'. Also known as Advanced 5G, 5.5G is an evolution of 5G technology and a wireless communication technology that precedes 6G.

On the 26th (local time), Huawei held the '5G Beyond Growth Summit' at MWC in Barcelona, Spain. Li Feng, Huawei's Chief Enterprise Vice President and President of the ICT Sales and Services Division, introduced how telecom operators can succeed in 5G business and create new growth opportunities through 5.5G.

Li Peng, Senior Vice President of Huawei and President of ICT Sales and Services Division [Photo by Huawei]

He stated, "5G is on the right path to business success," and added, "Since its commercialization began in 2019, 5G has acquired 1.5 billion users worldwide over the past five years. This is an incredible speed compared to 4G, which took nine years to achieve the same result." He further explained, "Currently, 20% of global mobile subscribers use 5G, generating 30% of total mobile traffic and contributing 40% to mobile service revenue."

He continued, "5.5G will be fully commercialized in 2024," and predicted, "With the convergence of 5.5G, artificial intelligence (AI), and cloud, telecom operators will be able to leverage the potential of new applications and capabilities."

Li Feng emphasized that telecom operators worldwide must focus on high-quality networking, multidimensional monetization, new services, and generative AI to seize the opportunities brought by 5.5G.

In fact, an increasing number of telecom operators are setting strategic goals, including building high-quality 5G networks.

Some telecom operators in the Middle East have already deployed large-scale Massive MIMO networks and successfully rolled out 5G Fixed Wireless Access (FWA) by providing optimal experiences through these networks. Currently, 5G FWA connects approximately 3 million households and has become a strong revenue growth driver for telecom operators.

More than 20% of 5G telecom operators worldwide have adopted tiered pricing plans based on speed. Recently, a telecom operator in Thailand launched a 5G Boost Mode feature that allows subscribers to choose speed tiers according to their needs, resulting in an average revenue per user (ARPU) increase of about 23%.

A telecom operator in China achieved over a 70% increase in ARPU by launching a guaranteed uplink package to provide live streamers with a smooth, high-quality streaming experience.

New services such as New Calling, cloud phones, and glasses-free 3D are gaining attention from consumers. Value-added features of New Calling, such as virtual avatars, are highly popular, and users are willing to pay more for services that provide real-time experiences, such as one-stop car insurance claims.

5G is being introduced across various industries. In China, more than 50,000 private network use cases have been commercialized across over 50 industrial sectors. The new capabilities of 5.5G are expected to offer telecom operators more opportunities in the B2B (business-to-business) market.

According to IDC, global AI smartphone shipments in 2024 are expected to reach 170 million units, accounting for 15% of total smartphone shipments. Next-generation AI smartphones will feature more powerful storage, display, and imaging capabilities, creating new opportunities for telecom operators.

Finally, Li Feng expressed his ambition, stating, "Huawei will work with telecom operators to realize the potential of 5G and 5.5G and lead remarkable new growth."