The number of 5G package users has exceeded 200 million. How to tap the value of 5G?

Recently, the three major domestic operators have released their operating data for October. The data shows that in October, China Mobile's 5G package users increased by 15.201 million, reaching a total of 128.793 million; China Telecom's 5G package users increased by 7.06 million, reaching a total of 71.86 million. China Mobile and China Telecom have advanced in parallel and exceeded the 200 million mark.

[[355356]]

As the number of 5G package users exceeds 200 million, the user scale effect becomes more prominent. For operators, how to unleash the value of 5G users has become a difficult problem that needs to be solved urgently.

5G business continues to advance rapidly

As the scale of 5G commercialization advances, the number of operators' 5G package users continues to rise. China Telecom's strong growth momentum continues, with a net increase of 67.25 million 5G package users in the first ten months. China Telecom's development goal is to increase the number of 5G package users by 80 million in 2020. According to the current growth trend, it is just a matter of time for China Telecom to exceed its annual target. The number of China Mobile's 5G customers has reached 128.793 million, and according to this trend, it is expected to exceed 130 million next month. From the end of October last year when 5G was commercially available to the end of June this year, the number of domestic 5G package users exceeded 100 million, and then exceeded 200 million at the end of October. The growth rate of 5G package users in my country is accelerating.

However, while the number of 5G package users has surged, the number of mobile users of the three operators has declined significantly compared with September, especially China Unicom. The number of new users has once again turned negative, with a net decrease of 148,000 households, totaling 309 million households. The net decrease in mobile bill users this year is 9.441 million.

China Telecom's total number of mobile users increased by 810,000 in October, achieving eight consecutive months of net growth, becoming the operator with the most months of positive growth in mobile users among the three major operators. In addition, China Telecom's total number of mobile users increased by 14.59 million throughout the year, also ranking first among the three major operators.

Multiple positive factors drive the rapid development of 5G users

The good start of operators’ 5G business is inseparable from the promotion of many favorable factors.

On the one hand, the 5G network is gradually improving. As of October this year, more than 700,000 5G base stations have been put into operation. Taking China Telecom as an example, as of now, China Telecom has opened more than 320,000 5G sites, covering more than 300 cities, and has built the world's largest co-built and shared 5G network with China Unicom. It is understood that the construction of 5G base stations in China will also be carried out on a large scale next year. This will undoubtedly lay a solid network foundation for the surge in 5G users.

On the other hand, application terminals are constantly enriched. According to data from the China Academy of Information and Communications Technology, in October this year, the domestic market shipments of 5G mobile phones reached 16.76 million units, accounting for 64.1% of mobile phone shipments in the same period. So far, my country has obtained 253 terminals with network access licenses, including 218 5G mobile phones, and 5G multi-form, multi-category, and multi-functional terminals have continued to make breakthroughs.

The "China Telecom Terminal Insight Report (2020 Edition)" pointed out that consumers' 5G service perception rate increased from 55.6% in 2019 to 70.9%. 5G mobile phones are accelerating their popularization in the mid- and low-end price ranges, driving the overall net recommendation value of terminals to rise.

Accelerate SA network construction to release 5G value

Currently, operators have combined high-definition video, virtual reality and other technologies to launch 5G applications such as immersive games, remote classrooms, and remote offices, which are gradually approaching the lives of the public. However, relevant experts also pointed out that the current development of 5G applications in my country presents a "melon seed-shaped" state: mature technology, heavy industrial applications, and few consumer market applications. Therefore, if we want to accelerate the popularization of 5G and truly usher in the era of 5G for all, we still need to start from the pain points of consumers' actual experience.

According to the law of communication development, network development is the prerequisite for the outbreak of applications. In this regard, operators urgently need to speed up the construction of 5G SA networks to truly release the value of 5G. Fortunately, good news has been coming recently. At the 12th Tianyi Smart Ecological Industry Summit Forum, China Telecom announced that the world's largest 5G SA network was put into commercial use, and at the same time released a 5G SA customized network. At the same time, China Telecom stated that it will build the world's largest 5G SA network through co-construction and sharing with China Unicom. China Mobile also stated that it has 350,000 SA base stations and has SA commercial capabilities in 337 cities, providing 5G SA services to all prefecture-level cities and above and some key county towns across the country.

I believe that as 5G SA network scale, network capabilities, and network experience reach a new level, operators will also advance in both quantity and quality in 5G development, enhance the ultimate experience of digital life, and realize the enhancement of 5G commercial value in multiple scenarios.