Huawei reiterates the power of video as a great value proposition for telcos

As of the end of 2017, top 50 fixed-first operators had 300 million video users, generating $89.3 billion in revenue, a year-on-year increase of 8%.
Mobile operators make use of video services to reduce their user churn rate, drive traffic growth, and incubate new use cases.
Mobile operators make use of video services to reduce their user churn rate, drive traffic growth, and incubate new use cases.

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During the Mobile World Congress (MWC) 2018, Huawei held the Video Powers New Growth forum. At the forum, Huawei and IHS Markit jointly released two white papers – Video as a Core Service for Telcos (Video as a Core Service) and Mobile Video Opportunities for Operators (Mobile Video). These white papers showcase the value of video services to operators, and define the strategies and approaches for developing video services.

According to the Video as a Core Service white paper, video as a core service means that operators make video services a major value proposition that will drive the growth of their telecom business. The key is to include video services in their basic service packages to help expand new markets and drive new growth.

The white paper analysed the video service development of the top 50 fixed-first operators in terms of the number of video subscribers, and came to the conclusions mentioned above. As of the end of 2017, these top 50 fixed-first operators had 300 million video users, generating $89.3 billion in revenue, a year-on-year increase of 8%.

By analysing the video services of leading operators, the white paper defines five strategic approaches to help operators achieve video business success: Bundled packages, unbundled services, multi-source aggregation, purchase of high-quality and exclusive content, and delivering new service experiences.

The Mobile Video white paper analysed the video services of the world's top 25 mobile carriers in terms of revenues, five major regional mobile operators, and 200 OTT players. The result shows that video traffic accounts for 50%–60% of the total traffic of mobile operators.

Video has become a major service of mobile operators, and users see video experience as a major factor when choosing operators. Mobile operators make use of video services to reduce their user churn rate, drive traffic growth, and incubate new use cases. The white paper concludes by proposing four video business models of mobile operators: Directly monetised content, basic partnerships, bundled services, and data free services.

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