Operators' efforts in 5G messaging may accelerate industry reshuffle

5G messages continue to make new progress. Recently, Haobai Information, a subsidiary of China Telecom, joined hands with ZTE to establish a 5G message application incubation base, which will strengthen cooperation and exchanges in message content construction and product service improvement. At the end of last year, China Mobile also successfully completed the 5G message private network pilot at the 5G Message Innovation Center in cooperation with China Mobile Internet, China Mobile Research Institute, etc. From the proposal to the present, 5G messages have gradually become more in-depth and practical and have begun to connect thousands of industries. Its role in the era of "Internet of Everything" will become increasingly important. With the important builders of the new infrastructure base-operators have made efforts to lay out, 5G messages are gradually landing, carrying an important mission in this era of Internet of Everything.

5G messaging empowers all industries

As 5G messages enter the commercial stage, industry application scenarios have become the focus of the industry. Lu Di, an associate professor at the National Key Laboratory of Communication University of China, recently said: 5G messages will lead banks into a new entrance to the intelligent era. At the same time, 5G messages are not just an upgraded version of short messages. They are of epoch-making significance for the intelligent upgrade of banks and are of great significance to the operation and future development of banks. In addition to the financial industry, 5G messages are also helping the development of the tourism industry. At the end of 2021, the Digital Gulangyu 5G messaging service jointly developed by Xiamen Mobile, Gulangyu Scenic Area, and Xiamen Zhouyuan Technology (Zhongzhi Zhengyuan Enterprise) was successfully launched, creating a new benchmark for smart cultural tourism.

Minsheng Securities Research Report pointed out that since 5G messages are similar to mini-programs and public accounts in function, enterprises and individuals can fully interact with each other, and applications such as ticket booking and enterprise promotion will gradually become popular. The commercial potential in the fields of finance, Internet, e-commerce, commercial chains, public utilities, etc. is expected, and the demand for platform services and industry applications such as CSP is expected to continue to increase. The successful pilot of the 5G message private network marks the birth of the 5G message industry private network capability, adding special applications and powerful weapons to 5G messages, which will effectively empower thousands of industries.

Operators scramble to deploy 5G messaging

In the initial development of 5G messaging in China, operators have always been the most active promoters. As early as April 2020, the three major operators jointly released the "5G Message White Paper", which was the first to open the clarion call for the construction of the domestic 5G messaging industry. In the construction period of more than two years, operators have always been at the forefront.

China Telecom revealed: "We plan to promote the commercial use of 5G messages in January 2022, and we are currently formulating a plan." China Unicom has so far connected hundreds of high-quality CSP customers and more than 100 industry customers, and continues to upgrade its 5G message services. China Mobile has also teamed up with the Hubei Provincial Meteorological Bureau to push cold wave warning 5G messages to terminal users that support 5G, and has successfully reached 478,000 users.

According to the "Economic Operation of the Communications Industry from January to November 2021" released by the Ministry of Industry and Information Technology, as of the end of November 2021, the total number of mobile phone users of the three basic telecommunications companies reached 1.642 billion, of which the number of 5G mobile phone terminal connections of the three basic telecommunications companies reached 497 million, a net increase of 298 million over the end of last year. Such a user scale also lays the foundation for the future prospects of 5G messaging.

5G messaging reshapes operators’ competitiveness

After more than two years of construction, the commercial use of 5G messages has ushered in a new round of breakthroughs. The foundation of 5G messages is to use the operator network and the terminal native entrance to achieve compliant, reliable, and closed-loop message services with the user's mobile phone number as the identifier. Compared with SMS, 5G messages have a better experience and realize the interactive closed loop of the mobile Internet ecosystem. It should be emphasized that although 5G messages are an upgrade of traditional SMS and have certain attributes of Internet applications, they are not completely equal to Internet applications. After communicating with the China Academy of Information and Communications Technology, the Ministry of Industry and Information Technology believes that the point-to-point part of 5G messages should belong to the category of basic telecommunications services. Compared with Internet message services, 5G messages bring real-name authentication, which means more compliance and more credibility.

This year is a critical year for the commercialization of 5G messaging. The upstream and downstream of the industry chain are working together to build a 5G messaging ecosystem with network interconnection, business interconnection, terminal sharing, and consistent experience. As an epoch-making application of the Internet of Things, it can not only quickly integrate Internet of Things resources, connect the digital society and consolidate the foundation of the digital economy. At the same time, it can also form a cross-dimensional attack on traditional APPs, accelerate the reshuffle of the industry, and reshape the competitiveness of operators.