Operators increase the layout of government and enterprise business, is expected to grow into a new growth pole

The arrival of 5G has become an opportunity for operators to develop their government and enterprise business. In the flow of traditional business growth is weak, operators timely cloud computing, Internet of Things and other new technologies into the government, education, health care, transportation and other vertical market segments, is expected to find a new growth point.

Operators competing to develop the government and enterprise market

The arrival of the 5G era, opened a new round of competition in the operator's track, the next phase of the focus on the development of the government and enterprise market, has become the operator's **** knowledge.

China Telecom has emphasized that the main business of the government and enterprises is IDC and private line, accounting for 95%. Therefore, the Group should increase its efforts to accelerate the progress of reform, to promote the reform and development of government and enterprises on the basis of cloud-network convergence, and unswervingly promote the business on the cloud, the system on the cloud, the network on the cloud as the core of the enterprise "cloud reform" development strategy.

The cloud-network convergence not only meets the operator's own network transformation requirements, but also contributes to the digital transformation of the industry. China Telecom provides rich cloud consulting programs, iterative cloud company IaaS/PaaS products and operation and maintenance capabilities. Taking the 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 cloud-network convergence services for the Industrial Internet, helping enterprises to improve productivity and shorten the cycle of R&D and production.

At the same time, China Telecom to promote government services on the cloud, participate in the construction of provincial and municipal government cloud and urban snow bright project, to create an integrated government services platform, the current sky cloud has built a provincial government cloud platform 11, local and municipal government cloud platform more than 100.

Not long ago, China Telecom put forward requirements, the provincial companies before the third quarter of the government and enterprises OTN/CN2-DCI access all built Tianyi cloud resource pool. Now China Telecom has upgraded CN2 to a high-speed interconnection network between Tianyi cloud, third-party cloud, and third-party DC, covering 300+ cities, accessing 110+ Tianyi cloud resource pools and 200+ IDCs, and possessing 6,000+ MEC edge cloud access capabilities.

With its own cloud-network convergence resources, China Telecom has once again demonstrated its great advantage in serving government and enterprise customers, and has also achieved great returns. China Telecom's industrial digitalization revenue in the first half of this year reached as high as 42.9 billion yuan, which is far ahead of the three major operators.

China Mobile, in November last year, China Mobile organized a global cooperation conference, China Mobile Chairman Yang Jie pointed out that the government and enterprise market is the next most important piece of China Mobile's four markets, but also China's efforts to invest more resources, everyone together **** with the promotion of an important market. To this end, China Mobile has carried out the reform of the government enterprise system, formed a T-shaped structure and a government enterprise business unit, three professional companies and three industrial research institutes "1 + 3 + 3" of the government enterprise system, so that the efficient allocation of resources, the depth of the integration of business.

In the government and enterprise market, China Mobile has launched "network + cloud + DICT" information services around smart cities, smart transportation, industrial Internet and other areas, and in the first half of this year, the number of China Mobile's government and enterprise customers reached 11.29 million, with a net increase of 1.01 million compared with the end of 2019, and the government and enterprise market revenue amounted to 55.204 billion yuan, an increase of 18.4 percent year-on-year. Revenue from the government and enterprise market was 55.204 billion yuan, up 18.4% year on year, and DICT revenue reached 20.9 billion yuan, up 55.3% year on year, while China Unicom focused on the government and enterprise market, focusing on industrial Internet, smart cities, medical and health care, and other fields, to create a number of 5G lighthouse projects, and successfully realized the commercialization of 5G applications on the ground. 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 been a key component of the operator's strategy of "one out of three worlds", and in the 5H era, the operator's efforts in the government and enterprise market are mainly due to three reasons:

First, the government and enterprise market in the 5G era is still a blue ocean. From the law of network economic development, the individual and family market first start, after the start of the government and enterprise market, at present, whether it is the government, enterprises or a large number of small and medium-sized micro-enterprises, there are a variety of ways of mobile Internet needs. In this regard, China Mobile said that the government and enterprise business has become the main engine of the company's revenue, is a "blue ocean". It is reported, China Mobile government and enterprise products are mainly communication +, video +, office +, security +, cloud +, industry applications +, international products, seven categories, to provide financial, transportation, education, industrial energy, Internet, medical, agriculture and business eight types of industry solutions, it can be said that each area has a huge market to be developed.

Secondly, from the market capacity point of view, to the government and enterprise end of the market capacity is greater. 5G period of government and enterprise for the demand for communications services will be more comprehensive, including the basic network (mobile network + broadband + leased line), mobile terminals, mobile office, big data and cloud storage and so on. The development of the government and enterprise market is precisely the hope of operators to break through the limitations of the basic communications business, enter the vast ICT market, and develop new growth poles by virtue of their own communications resources and customer reserves.

Wang Xiaochu, chairman of China Unicom, said that looking ahead, the massive demand for intelligent and digital transformation of various industries will bring great potential for enterprise development.

Third, from the basis of the operator's capabilities, the business for the individual and family market is mainly based on general infrastructure service capabilities, with a lower premium, while the business for the government and enterprise market is based on differentiated customization capabilities, with a higher premium. The company's products and services are designed to meet the needs of the market, and the company's products and services are designed to meet the needs of the market, and the company's products and services are designed to meet the needs of the market, and the company's products and services are designed to meet the needs of the market, and the company's products and services are designed to meet the needs of the market.

Open and cooperative industrial ecosystem

Under the environment of slowing down or even negative growth of the overall revenue of carriers, shifting the center of gravity to the government and enterprise business is one of the ways for carriers to solve the problem of increasing revenue. Industrial Internet has become an important driver of revenue growth, Soochow Securities pointed out that 5G through the industrial Internet to change the traditional industry, the industrial Internet is based on the operator network to realize the whole industry chain through, so operators play an important role in the industrial Internet.

There are also industry insiders who believe that in the future development path of 5G, the industrial Internet will occupy a large part of the government and enterprise business, and is even expected to surpass the personal business and become the leader of the operator's revenue growth.

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

On the one hand, 5G networks need to be optimized and enhanced according to 2B industry characteristics. To car networking, for example, Wu Hequan, academician of the Chinese Academy of Engineering, said that the entire 5G, although the consideration of car networking, but it is still designed for public communications in the first place, public communications and car networking is not the same. Public communications is oriented to the majority of customers, the geographical scope is very wide, but the car networking communication geographical scope is smaller, and the city car networking 80% is located in the outdoor driving state, the mobility management requirements are higher. Therefore, 5G Telematics requires a dedicated network with dedicated frequencies, and the operator's 5G core network needs to be optimized and enhanced according to the characteristics of the industry, to meet the requirements of Telematics is still a big challenge.

Secondly, it is essential to strengthen the ecosystem cooperation of partners. China Unicom said that the future will actively cultivate the development of 5G + vertical industry application integration and innovation. At present, China Unicom is aggregating the advantageous power of war investment partners, and continues to carry out in-depth cooperation in key areas such as cloud computing, big data, Internet of Things, artificial intelligence and so on. Such as a joint venture with Tencent cloud King culture and tourism technology company, focusing on science and technology, culture and tourism, has formed a number of customizable industry products/modules of the product system. China Telecom has also joined forces with Wanda Information, Lianzhong Wisdom, Xinhua San and other partners, released medical cloud zone ecological joint program, *** build medical cloud ecology, covering the digital medical *** body platform, full performance system, cloud HIS, medical cloud desktop, 5G telemedicine, cloud HRP system and other six major areas to accelerate the landing of intelligent health care.

5G is not only the operator's 5G, but also the 5G of thousands of industries, operators and the entire industry **** with the collaboration, in order to **** building ecosystems, **** win the development of the times.