Bharti Airtel And Reliance Jio Can Learn From 4G Strategy Of Chinese Operators

Will-Reliance-Jio-And-Airtel-Learn-From-4G-Strategy-Of-Chinese-Operators?Chinese operators are continuously focusing on expanding 4G infrastructure, increasing 4G subscribers, creating 4G handset ecosystem and Indian 4G operators like Bharti Airtel and Reliance Jio can learn a lot from Chinese operators 4G Strategy.

Chinese operators have deployed nationwide 4G coverage in their respective 4G license areas by deploying 4G base stations and Wi-Fi hotspot in cities, counties, rural towns and villages. The network expansion by all operators be it China Mobile, China Telecom and China Unicom are still continuing as they plan to provide coverage to a larger population in respective provinces and also provide ubiquitous coverage.

4G Infrastructure
China Mobile is the world’s largest 4G network covering a population of more than one billion people. The company provides continuous nationwide coverage in almost all cities and counties as well as Wi-Fi hotspot coverage in developed rural towns and villages. In the first half of 2015, the number of 4G base stations installed by China Mobile reached 940,000 and the company is still enhancing its network capability and coverage.

In 2015, China Telecom managed to achieve a breakthrough in geographical limitations following the issuance of the LTE FDD licence and accelerated its coverage. The company fully exploited the competitive capabilities of network, terminals, channels and customer service accumulated in preceding years. Taking full advantage of tower sharing, China Telecom rolled out 4G network fast and enhanced time-to-market and savings in capital expenditure.

The 4G network of China Telecom was effectively enhanced and subscriber and market share rapidly increased despite market being very competitive. The new integrated offering of dual-100 Mbps with 4G and fiber broadband was successful while the scale of operation and data traffic operation of the company achieved remarkable results.

In the first half of 2015, China Unicom sped up the transformation of its sales and marketing model which shifted the focus from quantity to quality, and accelerated the adjustment and optimisation of its subscriber structures by focusing on 4G and fiber optic fixed-line broadband businesses.

The company fully opened its 4G network to all the users, promoted 4G smartphones, sped up the user migration from 2G/3G to 4G, and improved its product portfolio to address both existing customers and new subscribers. As a result, the company’s mobile user structure and revenue mix were further optimised.

In the first half of 2015, China Unicom expanded its mobile broadband base stations by 272,000 to reach 837,000 base stations for providing continuous 4G coverage in main areas. China Unicom continued to increase its network load-carrying capability and proactively conducted tests and trials in new evolving network technologies such as SDN and 1,000M fiber optic network so as to support the company’s sustainable development in the future.

4G Numbers & Growth Drivers
China Mobile 4G recorded a net increase of 99.6 million customers in the first half of 2015. At the end of June 2015, China Mobile’s 4G customer base reached 190 million, accounting for 23 percent of its total number of customers, and its 4G customers’ DOU reached 704 MB.

Driven by the rapid development of 4G, data business for China Mobile continued to grow by 24.3 percent over the same period last year and contributed 50.6 percent to telecommunications services revenue. Revenue from wireless data traffic increased 40.1 percent over the same period last year and was the primary driver of the growth of revenue.

China Mobile proactively guided the development of device supply chain to launch 4G devices of more diversified models at more affordable prices. In the first half of 2015, 140 million 4G handsets had been sold through all distribution channels. China Mobile accelerated its customer migration to 4G network by promoting the integrated marketing of devices, USIM cards and 4G tariff plans.

The company has launched 4G international roaming services in 82 countries and has also accelerated the global development of TD-LTE through the efforts of GTI (Global TD-LTE Initiative).

In the first half of the year, China Telecom net addition of 4G terminal users was approximately 22 million, reaching a total of approximately 29 million and driving steady growth of its business. The company also reinforced the concerted development of broadband and 4G, as well as speeding up the product upgrade to promote the profitable and sustainable development of wireline broadband services.

In the first half of 2015, the number of its mobile broadband subscribers of China Unicom increased by 8.68 million to 157.79 million, accounting for 54.5 percent of its total mobile subscribers, up by 6.8 percentage points over the same period last year.

China Unicom has also utilized its resources and launched an innovative service package “Smart Wo Family” to cater to the needs of family users, which provides total communication and information solutions across all networks, all terminals and all businesses. In the first half of 2015, the company had 2.13 million “Smart Wo Family” users.

China Unicom firmly grasped the opportunities brought by the rapidly growing data demand, and accelerated the consumption upgrade from voice service to data service. The company also promoted data volume operation and application innovation, and proactively explored opportunities to cooperate with Internet companies to boost data traffic and data value.

In the first half of 2015, the data usage of the China Unicom’s handset subscribers grew by 47.4 percent year-on-year and the average monthly data traffic for mobile broadband customers grew by 34.1 percent year-on-year; non-voice’s share of mobile service revenue and fixed-line service revenue reached 58.5 percent and 83.3 percent respectively.

Meanwhile, China Unicom has sped up its strategic deployments in emerging businesses. CMB-Unicom Consumer Financing Company is under operation with a focus on Internet finance. “Woego”, the Company’s B2B platform has already generated transaction of RMB 10 billion in the first half of 2015. Partnership with Telefonica for location-based big data service is also under full preparation. The above innovative initiatives in emerging businesses such as Internet applications will provide the company with new room to grow and new capability to develop.

Future Plan
Looking ahead, China Mobile will focus on the strategic vision of “Mobile Changes Life, Build Quality Smart Pipe, Become A Trustworthy Digital Services Expert”. The company is planning to develop digital services and continue to adhere to quality and efficiency, and promote business redeployment and innovation.

By carrying out industrial layout, capacity building, integrated innovation and reform drive, China Mobile will continue expanding its market share in daily life services oriented to individual customers and information services oriented to all industries to build its new advantages for competition and development.

In the second half of the year, China Telecom will strengthen 4G premier network quality, brand advantage and leading customer experience, taking customer experience as the core. The company will vigorously promote the development of signature terminals such as dual-SIM 6-mode handsets, 4G+ handsets and security handsets and comprehensively accelerate the transformation of channel operation model with O2O as the core.

China Unicom will further pursue its strategy of “Leading Mobile Broadband and Innovating Operational Integration”, consolidate and create differentiated service advantages, proactively adapt to market changes, firmly grasp opportunities, and accelerate subscriber migration, consumption upgrade as well as business innovation, so as to ensure the company’s continuous and rapid development.

China Unicom will step up its 4G-oriented integrated mobile operation as well as the penetration and development of its fixed-line fiber optic network and business to improve quality and efficiency through continuous development. The company will further step up the innovation, focus on key areas such as cloud computing, the Internet of Things, big data and mobile Internet, promote China Unicom’s own “Internet+” Plan and e-commerce across all businesses.

2015 is a crucial year for Chinese operators as they are facing various challenges including a slowdown in macro-economic growth, saturated market on mobile subscribers, VAT reform and speed upgrade & tariff reduction as well as intensifying competition within and across the industries. In light of the macroeconomic transformation, the Chinese government is now paying unprecedented attention to the promotion of ICT sectors.

Looking ahead, the Chinese government’s promotion of the “Internet+” Plan will lead information consumption to become an emerging area with rapid growth. In the Internet of Everything era, everything including human beings, objects, locations, data will be re-organized and re-connected, which opens up a broad market for digital services, brings broad space for the sustainable development of the information and communication industry and provides unprecedented opportunities for the company’s development.

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