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Dr. Xiongyan Tang China Unicom Network Technology Research Institute

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Dr. Xiongyan Tang China Unicom Network Technology Research Institute Dr. Xiongyan Tang China Unicom Network Technology Research Institute June 2014, Shanghai Content 1 Impact of OTT on Telco 2 Cooperation between OTT and Telco 3 Telco’s IP Communication Services 4 Summary 2 Diversified OTT models OTT 3 Impact of OTT on Telco Impact on Telco’s traditional core business ( cannibalizing voice and SMS) Impact on mobile network (occupying more signaling resources) Impact on mobile data traffic (driving the exponentially growth of traffic) Telco: data traffic to grow OTT: exponentially growth while voice/SMS to decline (minute/month · user) (MB) April 2014，WeChat 180 170 160 165 subscribers : >600 million 140 active users: 400 million 120 160 100 155 April 2014，Line 80 Subscribers: >400 million 60 150 40 145 20 2012，Skype voice and 0 140 video increased by 44% and Jan.to Feb. 2012 Jan.to Feb. 2013 Jan.to Feb. 2014 reached 167 billion minutes Mobile Internet data volume per user MOU (Source: MIIT) 4 Smart operation of mobile data traffic : cooperation with OTT providers Directional Mobile data traffic of China Unicom traffic for Wo + Music … （100million MB） certain 2700 OTTs ↑120% (charging Wo + Video … subscriber) 1225 Backward charging traffic Wo + E-Commerce … 2012 2013 (charging OTT) 3G mobile traffic/month/user （MB） Co-brand ↑25.6% Wo + WeChat … Cards 147.8 185.6 Telco’s 2012 2013 App Store Wo + APP … Platform 5 “微信沃卡” WeChat Wo Card: cooperation of China Unicom and Tecent China Unicom and Tencent jointly unveiled the WeChat Wo Card in 2013, a designated 3G SIMplan to provide discounted prices for WeChat traffic and give users certain exclusive privileges in using WeChat. Increased the number of group Group chat members to 150 Chat Data Stickers Discount for WeChat data Traffic Exclusive WeChat stickers traffic User for free Payme Game Discount for China Unicom nt Preferential price for WeChat prepaid mobile services gaming and on-line shopping CU Guangdong: unveiled on 8 Aug 2013, 1million cards soled in 1 month CU Guangxi: unveiled on 20 Feb 2014，20,000 cards sold in the 1th day CU Jiangsu: unveiled on 11 Jan 2014，100,000 cards sold in 8 days …… 6 MNO’s IP communication services WebRTC RCS VoLTE SMS/MMS 2G/3G Voice VoLTE could help operator To avoid the fate of pure “pipe” provider, reduce cost and improve user operator needs its own IP communication experience services to strengthen competitiveness • HD Voice: better voice • Rich and converged communications: VoLTE, RCS experience, faster call setup, voice call continuity for 2/3/4G • Interoperability of IP communication services • More innovative services could • Leveraging new technologies to reduce the cost of be achieved based on VoLTE and basic communications RCS capabilities • Open API of basic communication capabilities 7 Challenges for IP communication services IP communications interoperability issue QoS issues with IP networks and services No standardized service experience for native IP communications devices No common specifications and solutions for chipsets and terminals to support IP communications Security issues No mature business model for opening communication capabilities Uncertain market competitiveness of Telco's IP communication services 8 MVO’s innovative services Consolidation Strategic Option Digital Big Data Commerce MNO Internet Digital Of Service Cloud Cost Diversification Things Reduction IP Communications Competition 9 China Unicom’s activities in service innovations Smart Government Smart Transportation Smart Security Smart Smart Energy Smart Finance Medical Service Internet of Smart Education Smart Logistics Things Cloud Big data Computing IP • VoLTE trial Communication • RCS test and trial Service • Involved in WebRTC standardization • Cooperating with other MNOs to support IP communications interconnection 10 Open, Cooperation, Innovation and Value Strengthening cooperation with OTT to seek win- win business model Actively developing rich and converged IP communication services Smart Ultra-Broadband Pipe 11 Thank You！ 唐雄燕 Xiongyan Tang [email protected].
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