Operators are increasing their government and enterprise business layout and are expected to grow into new growth poles

The arrival of 5G has become an opportunity for operators to develop their government and enterprise businesses. At a time when traditional services such as traffic are sluggish, operators are expected to find new growth points by using new technologies such as cloud computing and the Internet of Things to enter multiple vertical market segments such as government affairs, education, medical care, and transportation.

Operators are competing to develop the government and enterprise market

The arrival of the 5G era has opened a new round of competition for operators. The next stage will focus on developing the government and enterprise market, which has become Operator's knowledge.

China Telecom once emphasized that the main business of government and enterprises is IDC and dedicated lines, accounting for 95%. Therefore, the group must intensify its efforts, accelerate the progress of reform, promote the reform and development of government and enterprises based on cloud and network integration, and unswervingly promote enterprise "cloud reform" with business cloud migration, system cloud migration, and network cloud migration as the core. development strategy.

Cloud-network integration not only meets the operator's network transformation requirements, but also assists the digital transformation of the industry. China Telecom provides enterprises with a wealth of cloud consulting solutions, iterative cloud company IaaS/PaaS products and operation and maintenance capabilities. Taking Tianyi Cloud Industrial Internet Platform as an example, China Telecom’s 5G+NB-IOT+MEC+ABC (artificial intelligence, cloud computing and big data) + industrial PON (passive optical network) will provide comprehensive and customized solutions for the industrial Internet. Professional cloud-network integration services help enterprises improve production efficiency and shorten R&D and production cycles. The strategic cooperation between China Telecom and Sany Heavy Industry has enabled factory equipment across the country to be "visible, manageable and controllable", increasing production efficiency by 15%, reducing labor costs by 15%, and reducing production costs by 20%.

At the same time, China Telecom promotes the migration of government affairs to the cloud, participates in the construction of many provincial and municipal affairs clouds and urban Xueliang projects, and creates an integrated government service platform. Currently, Tianyi Cloud has built 11 provincial-level government affairs cloud platforms. There are more than 100 municipal government affairs cloud platforms.

Not long ago, China Telecom requested that all provincial companies build OTN/CN2-DCI access to Tianyi cloud resource pools by the third quarter. Now China Telecom has upgraded CN2 to a high-speed interconnection network between Tianyi Cloud, third-party clouds, and third-party DCs, covering 30 cities, accessing 11 Tianyi Cloud resource pools and 20IDCs, and equipped with 600 MEC edges Cloud access capabilities.

Relying on its own cloud-network integration resources, China Telecom has once again demonstrated its huge advantages in serving government and enterprise customers, and has also achieved rich returns. China Telecom's industrial digital revenue in the first half of this year reached 42.9 billion yuan, far ahead among the three major operators.

As for China Mobile, at the Global Cooperation Conference held by China Mobile in November last year, China Mobile Chairman Yang Jie pointed out that the government and enterprise market is the most important next step among China Mobile’s four markets. It is also an important market that China Mobile is committed to investing more resources and promoting together. To this end, China Mobile has carried out government-enterprise system reform, forming a T-shaped structure and a "1+3+3" government-enterprise system with 1 government-enterprise division, 3 professional companies and 3 industrial research institutes, making resources efficient. Configuration and business are deeply integrated.

In the government and enterprise market, China Mobile has launched "Network + Cloud + DICT" information services in areas such as smart cities, smart transportation, and industrial Internet. In the first half of this year, the number of China Mobile's government and enterprise customers reached 11.29 million , a net increase of 1.01 million from the end of 2019, with government and enterprise market revenue of 55.204 billion yuan, a year-on-year increase of 18.4%. DICT revenue reached 20.9 billion yuan, a year-on-year increase of 55.3%. China Unicom is oriented to the government and enterprise market, focusing on industrial Internet, smart In the fields of cities, medical and health, we have built multiple 5G lighthouse projects and successfully realized the commercialization of 5G applications. In the first half of the year, China Unicom's industrial Internet business revenue increased by 36% year-on-year to 22.7 billion yuan, accounting for 16% of the overall main business revenue, becoming an important growth point in revenue.

Why has the government and enterprise market become the main track for operators?

The government and enterprise business has become a key component in the operator’s “one-third-of-the-world” strategy. In the 5H era, there are three main reasons for operators to focus on the government and enterprise market:

First, the government and enterprise market in the 5G era is still a blue ocean. Judging from the development laws of the Internet economy, the personal and family markets will start first, followed by the government and enterprise markets. At present, whether it is the government, enterprises or a large number of small, medium and micro enterprises, there are various forms of mobile Internet demand. In this regard, China Mobile said that government and enterprise business has become the main engine of the company's revenue growth and is a "blue ocean." It is reported that China Mobile's government and enterprise products mainly include seven categories: communication+, video+, office+, security+, cloud+, industry application+, and international products, providing finance, transportation, education, industrial energy, Internet, medical care, agriculture and commerce, etc. With eight types of industry solutions, it can be said that each field has a huge market to be explored.

Second, from the perspective of market capacity, the market capacity for government and enterprises is larger. In the 5G era, governments and enterprises will have more comprehensive needs for communication services, including basic networks (mobile network + broadband + dedicated lines), mobile terminals, mobile office, big data and cloud storage, etc.

Operators developing the government and enterprise market hope to break through the limitations of basic communication services, enter the vast ICT market, and develop new growth poles by relying on their own communication resources and customer reserves.

Wang Xiaochu, Chairman of China Unicom, said that looking forward to the future, the massive demand for intelligent and digital transformation in all walks of life will bring huge potential for corporate development.

Third, from the perspective of the operator's capability base, the business for the individual and home market is mainly based on general infrastructure service capabilities and has poor premium, while the business for the government and enterprise market is based on differentiated customization. Ability, strong premium. Take Tianyi Cloud as an example. Tianyi Cloud has customized personalized cloud solutions for various industries. With the three major advantages of cloud network integration, security and trustworthiness, and exclusive customization, it meets the increasingly diverse needs of various industries such as government affairs, education, and medical care. Cloud migration needs.

Open cooperation industry ecosystem

In an environment where the overall revenue growth of operators is slowing down or even negative, appropriately shifting the focus of operations to government and corporate business is the current solution for operators to increase revenue. One way out of the dilemma. The industrial Internet has become an important driving force for revenue growth. Soochow Securities pointed out that 5G changes traditional industries through the industrial Internet. The industrial Internet realizes the full integration of the industrial chain based on operator networks, so operators play an important role in the industrial Internet.

Some people in the industry believe that in the future development path of 5G, the industrial Internet will occupy a large part in government and enterprise business, and is even expected to surpass personal business and become the leader in operator revenue growth.

However, if operators want to successfully seize the government and enterprise customer service market opportunities, it will not happen overnight, and there is still a lot of work to be done.

On the one hand, 5G networks need to be optimized and enhanced based on the characteristics of the 2B industry. Taking the Internet of Vehicles as an example, Wu Hequan, an academician of the Chinese Academy of Engineering, said that although the entire 5G considers the Internet of Vehicles, it is first designed for public communication, and public communication is different from the Internet of Vehicles. Public communication is for a wide range of customers and has a wide geographical scope, but the communication geographical scope of the Internet of Vehicles is smaller, and 80% of the urban Internet of Vehicles is driven outdoors, which requires higher mobility management. Therefore, 5G Internet of Vehicles requires a dedicated network with dedicated frequencies, and the operator's 5G core network needs to be optimized and enhanced based on industry characteristics. There are still great challenges in meeting the requirements of Internet of Vehicles.

Secondly, it is essential to strengthen ecosystem cooperation with partners. China Unicom said that it will actively cultivate the innovative development of 5G+ vertical industry applications in the future. Currently, China Unicom is gathering the advantages of strategic investment partners and continuing to carry out in-depth cooperation in key areas such as cloud computing, big data, Internet of Things, and artificial intelligence. For example, Yunjing Cultural Tourism Technology Company, a joint venture with Tencent, focuses on technology, culture and tourism, and has formed multiple product systems that can customize industry products/modules. China Telecom has also recently joined forces with Wanda Information, Lianzhong Intelligence, Xinhua III and other partners to release a joint ecological plan for the medical cloud zone to fully build a medical cloud ecosystem, covering digital medical system platform, full performance system, cloud HIS, Six major areas including medical cloud desktop, 5G telemedicine, and cloud HRP system accelerate the implementation of smart medical care.

5G is not only 5G for operators, but also 5G for thousands of industries. Only by cooperating with operators and the entire industry can we build an ecosystem and win the era of development.