Four leading geese: the starting point for large-scale commercial use of 5G to B

Suddenly, 5G has truly come into our lives. With the full launch of commercial use and the continuous advancement of 5G network construction, for many people, the promise of "4G changes life, 5G changes society" seems to have been made yesterday, but 5G network has become a reality at an unexpected speed.

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A few days ago, Huawei founder Ren Zhengfei reiterated in an interview that the greatest use of 5G is To B, that is, for commercial users to use and create some advanced things. Ren Zhengfei believes that the main purpose of 5G in the future is not to provide large traffic. If it only provides ultra-large-scale traffic, then 5G itself will fail.

Under the social and industrial consensus of 5G to B, the focus of various industries has begun to shift from 5G technology and 5G infrastructure to the possibility, application logic and commercial value of 5G application in the industry. In this process, the first problem we need to solve is whether the low latency, large bandwidth and large number of connections brought by 5G can be combined with the needs and formats of thousands of industries. However, there will inevitably be a difference in the application of 5G in various industries - which industries will benefit from the 5G era first and enter the next industrial stage of large-scale reuse of 5G solutions?

The answer to this question is related to how capital, entrepreneurs, practitioners, students, and ordinary people deal with the relationship between their lives and work and the 5G era in the next cycle. It is also related to how we can seize opportunities for development and innovation in the 5G era.

From the two aspects of 5G technology adaptation and 5G business needs, we can find that in the 5G to B process, four leading geese have emerged: medical care, education, business, travel and culture, and intelligent manufacturing.

Side A: 5G to B technical adaptation

The question of which industries 5G is best suited for must have a prerequisite logic as a basis for discussion. We believe that there are two things that can serve as a starting point for thinking: first, which industries’ technical characteristics are relatively more suitable for 5G to play its value; second, which industries can 5G networks bring the greatest commercial value to.

We already have a broad understanding of the basic capabilities provided by 5G. From an industrial perspective, the industries that are most suitable for 5G to play its value need to have three characteristics:

1. It is best to be a multi-scenario, multi-link technology comprehensive application industry that can maximize the comprehensive value iteration carried by 5G. For example, the retail industry involving various online and offline scenarios is a typical representative.

2. Industries that rely on data transmission are suitable for the development of 5G. For such industries, being able to complete larger-scale data transmission in a shorter time means faster productivity or solving existing industrial problems in the industry. For example, during the epidemic, we witnessed the importance of telemedicine capabilities. If more patient data and virus data can be transmitted in a short period of time, it will obviously have very abundant industry value.

3. Real-time information transmission can effectively improve industry efficiency and help enhance industry value. Back to the medical industry, we can see that real-time remote consultation and remote diagnosis and treatment are invaluable at critical moments, which clearly illustrates the industry value of 5G.

In this way, industries where video and big data can play a role are more suitable for 5G to release value, and relatively complex industrial forms can play the inclusive characteristics of 5G. This may not be enough, we also need to examine the business circle of 5G to B.

Side B: Business Path from 5G to B

5G is not just a technological upgrade, but also a value investment that is being made in local economies, operator systems, and all industries. If 5G to B is to maximize its value and continue to innovate and develop at a high speed, the necessary commercial return function is essential.

From this perspective, we can find that three types of industries are most suitable for 5G industrial upgrading, which also means that they have stronger absorption and tolerance characteristics for the industrial value brought by 5G. These include:

1. The application model of 5G in this industry is relatively mature, and the relevant concepts and solutions have been basically explored, which can gain certain first-mover advantages. For example, the cultural industry has such characteristics, and the industrial models such as 5G+cloud VR and 5G high-definition live broadcast are relatively fixed, which also brings a relatively clear business feedback cycle.

2. 5G can bring obvious value returns. On the one hand, similar industries can receive high attention from society and capital, and on the other hand, 5G can outline a relatively clear iterative effect. For example, online education, which has received much attention during the epidemic, proves that 5G can bring extremely clear value returns.

3. The industry chain related to 5G applications is well-equipped and highly accepted. For example, intelligent technology, remote systems, mobile systems, etc., with better information and business model foundations, will make 5G more easily incorporated. For example, some manufacturing companies with high levels of intelligence and informatization that are adapted to Internet production and sales are relatively easier to complete 5G upgrades.

Combining these two aspects, we can find that in the start-up cycle of 5G to B, there are four very obvious leaders in our lives. Under the premise of mature technology acceptance and stable business logic, these four industries are more in line with the value generation of 5G to B, and can better enter the next industrial stage of large-scale replication.

They are:

Leader 1: Evolution of the medical industry in the post-epidemic period

As the epidemic situation gradually stabilizes and the "new infrastructure" wave is booming, if we ask everyone which industry they think should be upgraded first, the medical industry should undoubtedly be the first.

In fact, 5G has brought great help to the medical industry during the epidemic, especially in key epidemic prevention and control areas. For example, Leishenshan and Huoshenshan hospitals have set up 5G networks to ensure the real-time implementation of remote meetings, expert consultations, and digital medical care. 5G has become a pioneer in the anti-epidemic battlefield.

In the next long period, the value of 5G+medical care will obviously be fully promoted by all sectors of society. In fact, the medical industry has diverse 5G adaptation capabilities. Whether it is based on 5G+ video remote consultation, remote medical teaching; or remote CT, remote diagnosis and treatment vehicles, and medical equipment digitization based on IoT technology; or genetic data transmission and vaccine development, which are crucial in the field of medical research, they are inseparable from 5G.

The 5G evolution of each medical system is essentially an upgrade and opportunity reconstruction of an industrial chain. Whether we are looking forward to 5G+medical care benefiting our lives or looking for opportunities in it, medical care is one of the 5G to B areas that we should pay most attention to in the future.

Leader 2: Digital Upgrade of Education in the OMO Cycle

In addition to healthcare, the second most watched industry in the social and economic attention list is undoubtedly education. During the epidemic, China implemented an unprecedented high-speed online education experiment. The policy of "suspending classes but not learning" ensured the continuation of education during this special period, and also allowed us to witness the importance of the network environment and related infrastructure in the education industry.

After the resumption of classes, the upgrading of the education industry has not stopped. The long-term integration of online and offline education, further promoting inclusive education, and other propositions are all related to 5G, forming a fast track for the development of 5G in education.

On March 16, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the "Notice on the Organization and Implementation of the 2020 New Infrastructure Construction Project (Broadband Network and 5G Field)" by the General Office of the National Development and Reform Commission and the General Office of the Ministry of Industry and Information Technology, which clearly listed "5G+Smart Education" as one of the seven 5G innovative application projects. The "Notice" requires that based on technologies such as 5G, VR/AR, and 4K/8K ultra-high-definition video, hundreds of schools, thousands of courses, and tens of thousands of people should create excellent cases, explore the application of 5G in scenarios such as distance education, smart classrooms/classrooms, and campus safety, and focus on 5G+ high-definition remote interactive teaching, AR/VR immersive teaching, holographic classrooms, remote supervision, and high-definition video security monitoring.

A large number of 5G upgrades and digital and intelligent transformations based on educational scenarios are also key industrial tracks for scalable replication and ecological innovation of 5G to B. There have been many similar explorations. For example, Beijing University of Posts and Telecommunications relies on 5G networks and uses holographic materials and holographic imaging technology to superimpose virtual scenes with real scenes, and adopts the form of 5G+holographic+4K large-screen interaction+IoT smart classrooms between different campuses.

This type of case will have strong value for replication and promotion in the next cycle, forming an opportunity window for the 5G industry to take the lead.

Leader 3: Business, tourism, culture, and the impact of 5G on consumers

5G brings high-definition video, low-latency live broadcast, cloud VR/AR, and support for IoT formats, which are all value ranges that can directly enhance the experience of consumers. According to this logic, if 5G to B wants to realize its value as quickly as possible and reap commercial returns, it still needs to consider close contact with ordinary consumers. For example, the retail industry has a large number of value enhancement points that 5G can bring. Its industrial characteristics have the characteristics of rapid returns and rapid promotion, which is suitable for the construction of 5G to B during its popularization period.

Of course, similar scenarios are not limited to the retail industry. We can see that culture, tourism, and commerce can all be accommodated in the value enhancement brought by 5G. Moreover, these industries have diverse scenarios and application systems, which are suitable for 5G's continuous innovation and rapid realization of business balance.

At L+MALL in Lujiazui, Shanghai, customers who come to shop today can already enjoy the high-end retail experience brought by 5G. On the one hand, they can enjoy a better mobile network in the mall covered by 5G signals, and on the other hand, customers can also experience the shopping guide, delivery, destination guidance and other services provided by 5G smart robots. At the same time, based on the 5G network, the stores in the mall can also build 5G+AI face recognition, 5G+8K high-definition video, indoor precise navigation, and passenger flow analysis and other service capabilities to diversify and improve business efficiency and enhance business experience.

From consumers to shops and shopping malls, 5G can change every aspect of the retail industry. Similarly, in the tourism and cultural industries, consumers and businesses can also obtain experience and efficiency upgrades through 5G, thereby comprehensively improving industry efficiency.

Bringing 5G to ordinary people as soon as possible is the core direction of this leading goose.

Leader 4: Let smart manufacturing go viral again

The industry has such a judgment that manufacturing + AI is the crown of artificial intelligence technology; by the same token, 5G + manufacturing is also an area with the greatest industrial value, the broadest impact on social and economic structures, and the closest connection with the essence of international people's livelihood.

Ren Zhengfei believes that 5G has many features suitable for industrial control, especially high bandwidth and low latency, which are beneficial to industrial manufacturing. In the actual cases currently being developed, we can indeed see that a large number of industrial Internet and industrial AI projects are constrained by network bandwidth capabilities and latency conditions, and cannot allow related technologies to enter the core of the industrial field with extremely strict industrial production conditions.

The commercial use of 5G can solve this problem. Under the impetus of "new infrastructure", the upgrading of manufacturing industry driven by technology integration is the most important form of new infrastructure implementation. Among them, 5G can bring the necessary network conditions for the in-depth integration of industrial big data and industrial Internet into the manufacturing system, especially for the realization of industrial intelligence. At the same time, the manufacturing industry with relatively mature digitalization, complete data foundation and Internet+ will benefit from 5G first, becoming the cross-winner of the two strong storms of technology integration and 5G to B.