Huawei Hu Houkun: Change is imminent, the video market size will reach 700 billion US dollars in 2020

The 7th Global Mobile Broadband Forum (hereinafter referred to as MBBF) was recently held in Tokyo, Japan. This is a conference to study the future quality of mobile Internet access for global users. At the meeting, Hu Houkun, vice chairman of Huawei, said that in the future mobile applications will carry all services, and the ubiquitous connection is changing the physical world into a digital world.

Huawei had previously predicted that by 2025, the number of global connections will reach 100 billion. More importantly, the form of connection will extend from a single physical connection to a physical + virtual digital connection, and the value growth rate will be far. Far more than the imagination of the industry.

Hu Houkun, Vice Chairman of Huawei

Hu Houkun pointed out that when the App Store was launched eight years ago, there were only 500 apps. In the next six years, the number of applications increased to 1 million. In the next two years, this number doubled. Today, the Apple Store has more than 2 million apps, while the Google (Weibo) app store has up to 5 million apps. Mobile applications are exploding, and mobile applications will present all services in the future.

For Huawei, helping operators digital transformation, fast and efficient solution of big data processing brought by mobile applications has become Huawei's future strategic center.

Recently, China ’s leading Polar Code solution has become the global 5g control channel eMBB scene coding, which has attracted industry attention. Although this is the first time that China ’s communication technology has entered a key field, it is more objective to say that 5g emphasizes collaboration and there will be only one future 5g standard. In the process of transitioning to 5g, Huawei hopes to increase the right to speak through 4.5g. So, in what areas will Huawei explore opportunities?

According to him, video business will be an important development direction for the next phase of application. "Video has become the most common form of content dissemination in professional communications such as media, social and marketing. Data from Huawei shows that video accounts for more than 60% of network traffic, and people spend more than 23% of their time online. The video market is huge and is expected By 2020, the market size will be as high as 700 billion US dollars. "He said.

In addition to video services, the change in video communications is also an important direction. Huawei believes that in addition to traditional video calls, many new forms of communication videos are emerging, such as watching live broadcasts through mobile terminals has become a popular trend. Real-time video will be an important application scenario at this stage. In less than two years, China ’s video users exceeded 300 million.

Obviously, live broadcasting will generate huge data traffic and also provide huge opportunities. Telecom operators can develop new business models, and Huawei can provide corresponding technical solutions.

Home applications are another big opportunity valued by Huawei. Currently, of the approximately 2 billion households in the world, 1.3 billion have no broadband connection, and the speed of 300 million connections is less than 10 megabits per second. Overall, these 1.6 billion homes will be the blue ocean market for wireless broadband.

Hu Houkun said that Huawei provides WTTx (wireless broadband to home) solutions. Currently, more than 100 operators have deployed WTTx, covering 30 million homes. WTTx's investment return cycle is very satisfactory, only about two years, which is much lower than the eight-year ROI cycle of fixed broadband. WTTx will become the first major 5g commercial case.

The third opportunity is in vertical industries. It is understood that the global vertical industry is undergoing digital transformation. Huawei believes that mobile networks may become a key enabler of digital transformation and will bring a lot of new opportunities. The target market is currently in the areas of wide area Internet of Things, public safety, Internet of Vehicles and other fields.

As for how to obtain these opportunities, according to Huawei's MBBF strategy, it will increase investment in network technology, end-to-end cloud service architecture, application platform, ecological construction and other aspects.

At present, Huawei's 4.5g network can effectively solve the LTE evolution problem and is the only way to 5g. Huawei provides three core capabilities of "Go Giga", "Go VerTIcal" and "Go CloudificaTIon" to help operators diversify their business development towards B2C, B2B, B2H and B2G and broaden their business boundaries.

As of the third quarter of 2016, Huawei deployed a total of 47 4.5g commercial and test networks worldwide, and it is expected that there will be 60 4.5g commercial and test networks by the end of 2016.

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