Adding more content rights makes 5G packages more popular

China Telecom's 5G package users have accumulated to 86.5 million, exceeding China Telecom's expected target in its 2019 performance report: to achieve a net increase of 15 million mobile users and 80 million 5G package users in 2020.

The number of China Mobile's 5G package users increased by 17.621 million in the month, reaching a total of 165.003 million, far exceeding the target of a net increase of 70 million in its 2019 annual performance report.

[[377575]]

Since the commercial use of 5G, basic telecommunications companies have achieved remarkable results in accelerating the construction of 5G networks, improving the industrial ecosystem, and promoting innovative applications. Although 5G has achieved remarkable results in 2020, it is still in the early stages of development in terms of network coverage, product system perfection, and the popularization of 5G applications. The Ministry of Industry and Information Technology recently organized a national 5G service work video and telephone conference. Liu Liehong, Vice Minister of the Ministry of Industry and Information Technology, required that 5G network construction should be promoted in an orderly manner, 5G network coverage should be strengthened, and network supply capacity should be enhanced; measures should be actively taken to facilitate users to replace terminals; 5G tariff packages should be optimized and improved based on user needs, and reasonable online contract terms and termination compensation standards should be set.

As new users have reached their ceiling and existing operations have become a new focus of competition, how to develop new users and how to quickly convert existing users into new 5G users have become issues that operators need to consider. In the new year, while accelerating the construction of 5G networks, operators should also focus on product content, promotion, and service quality in 5G products, develop the best package plan to win users and accelerate the development of 5G users.

Packages shift from emphasizing voice and data to emphasizing benefits

Looking back at 2020, it was a tough year for operators, but they still made good achievements, especially in 5G construction. According to the latest data from the Ministry of Industry and Information Technology, my country has built the world's largest 5G network, with a total of 718,000 5G base stations built, and promoted the joint construction and sharing of more than 330,000 5G base stations. The continuous deepening of 5G network coverage has also accelerated the recovery of the domestic economy.

2021 is the second year of 5G commercialization. Developing 5G is still the top priority for operators, and operators will also allocate more resources to developing 5G services. For users, the most direct thing related to them is the 5G package.

At the end of the 4G era, users no longer simply use voice or data. The launch of unlimited packages and Internet cards has led to an increasing demand for targeted data and rights products. Conventional packages cannot meet users' new needs, and users are paying more and more attention to package rights. Take Tencent King Card, the first free data card in history jointly launched by operators and Internet companies. From the initial package content, it is not only cheap, but the "user rights" such as activation privileges, first charge privileges, and APP privileges distinguish Internet products from conventional products. It has Internet characteristics and is attractive to specific users, directly hitting user needs. In just half a year of issuance, the number of new users of this package reached 20 million.

In the 5G era, the three major operators pay more attention to "user rights" in package settings. From the 5G packages currently promoted by the three major operators, it can be seen that in addition to regular traffic and voice, they also include ecological rights, membership rights and other content, and the product content is richer. These 5G packages usually include a certain amount of voice and traffic, which is not much different from the content of the later 4G packages. The biggest difference is that operators want to emphasize more on the differentiation of 5G by loading rights. In addition to the previous entertainment and life rights, they also reflect network rights with rate pricing, and introduce a variety of 5G-featured application rights such as high-definition video, VR, and 5G games.

Operators accelerate the deployment of 5G C-end applications

In order to allow users to truly experience the rights and interests included in 5G packages, operators are also working hard to deploy 5G applications and have launched corresponding 5G applications around high-definition video, VR, and 5G games/cloud games.

In terms of video services, operators have launched the slogan of "5G+UHD", integrating 4K HD video, VR content, live broadcast and other content, attracting many users. Taking China Telecom as an example, as early as the beginning of 2019, China Telecom completed the 5G+4K and 5G+VR ultra-high-definition live broadcast of the CCTV Spring Festival Gala, and realized the return of 4K ultra-high-definition signals through the 5G network. During the 70th anniversary of the National Day military parade, operators used the equipment "5G backpack" to achieve 5G+ multi-perspective ultra-high-definition live broadcast, providing users with a more comprehensive viewing experience. In 2020, during the epidemic, China Telecom successively realized the live broadcast of the construction of Vulcan Mountain and Leishen Mountain Hospitals. Subsequently, China Telecom's 5G "slow live broadcast" of Mount Everest brought netizens to watch the 24 hours of sunrise and sunset on Mount Everest from a VR perspective.

When it comes to 5G C-end applications, VR applications are naturally indispensable. With the launch of 5G networks, 5G+ VR has attracted more and more attention. The three major operators have successively launched VR layouts and launched VR-related applications. It is understood that in terms of content layout, China Mobile Migu launched 5G+VR panoramic live broadcast, the content is mainly immersive VR tourism and games, and it has also cooperated with Suning PPTV on sports events; China Telecom VR content mainly covers two types of film and television and games, among which film and television cooperate with South Korea's LG U+ to exclusively introduce native high-quality content; and the entire Unicom is configured with two versions of applications depending on whether the device is connected. The non-device connection version focuses on panoramic and entertainment video content, and the device connection version cooperates with Huawei in-depth in head-mounted display products, focusing on VR games, 3D/panoramic live broadcasts and other content.

In addition, operators are also continuously cultivating 5G games/cloud games. As early as 2019, the three major operators had already laid out cloud game products. China Mobile launched "Migu Quick Game", China Telecom launched "Tianyi Cloud Game", and China Unicom launched "Xiaowo Changyou". They are now online and have covered the mobile/TV side. They are particularly active in the competition in the cloud game industry. In terms of content, the three operators cooperate with the leading game manufacturers, and the mainstream mobile games are basically online, covering console, casual, role-playing, fighting, shooting, etc., with a rich variety of types.

In the new year, how should 5G packages be improved?

The network is the prerequisite for the operation of 5G applications. According to the latest statistics from the Ministry of Industry and Information Technology, my country has built more than 700,000 5G base stations, network construction is accelerating, and operators are actively promoting "dual gigabit" or even "triple gigabit". A sufficiently powerful network will not become an obstacle to the development of 5G users. When the network is guaranteed, the content is the embodiment of the difference, especially high-quality and exclusive content. Therefore, operators should base themselves on the current content layout, continue to deepen high-quality and exclusive content, and strive to create rights and interests content with "real" 5G characteristics.

First, product content must continue to diversify.

The basic operation of adding benefits to regular packages will become a hot spot for future product competition. In addition to targeted traffic, today's operators' Internet products generally also add life benefits, such as video membership and music membership. Compared with regular packages, the optimized new packages are more distinctive and have more obvious competitive advantages. In order to develop new users, in the design of new 5G package content, in addition to referring to the content of 4/5G regular packages, operators will also consider more comprehensively and pay more attention to the richness of product content.

Secondly, the product system should be diversified.

Although there are Internet-based products, the product design will retain some of the freedom of the original packages. These products are designed for non-traffic users and are characterized by users choosing the products they need. For example, the free-choice package launched by China Mobile allows users to choose a single voice package or a single traffic package based on their consumption. In the new product system, there will be life benefits, 5G application products and other content for users to choose on demand.

Finally, we should focus on the integration of home 5G products.

In the future, television and smart home application products will become standard content in broadband packages, and the development of high-quality users is inseparable from the addition of these products.

In short, the competitiveness of future packages will mainly come from the rights and interests content. Whoever has good rights and interests content, rich and high-quality content, and can meet the needs of users will win the favor of users.