How China Unicom Guangdong successfully monetises 5G with innovative live streaming solutions
China Unicom Guangdong, the fifth-largest mobile provider in the world, has unveiled a groundbreaking strategy to harness the immense potential of 5G technology.
By integrating cutting-edge live streaming solutions with tailored services, the company is setting new benchmarks in user experience and profitability. They have attracted over 500,000 subscribers to their bespoke 5G live streaming package, in turn boosting the company’s average revenue per user (ARPU) by an impressive 76%.
This success showcases the transformative power of leveraging advanced technology to address emerging consumer demands. But how did they get here?
How China Unicom Guangdong sought to redefine connectivity 5G era
In an age where live streaming dominates online content consumption, 5G is emerging as a vital enabler. With unparalleled speed, ultra-low latency, and network reliability, quite simply it is revolutionising the digital ecosystem.
Recognising 5G’s immense potential, China Unicom Guangdong tailored its offerings to the unique needs of high data-consuming streamers.
The unstoppable rise of 5G live streaming
Live streaming has become an integral part of modern digital culture, spanning platforms such as gaming, social media, e-commerce, and virtual events. And it’s only getting bigger: according to a 2021 report from Market Research Future, the global live streaming market is projected to hit $247 billion by 2027. This is driven by the growing demand for real-time, interactive content.
As a global leader in digital adoption, China is significantly contributing to this trend. Platforms such as Douyin (China’s version of TikTok) and Kuaishou attract millions of users daily, with a sizeable portion streaming content live.
However, these high bandwidth activities demand a robust network capable of supporting seamless connectivity. This is where 5G becomes indispensable.
Unpicking the technological backbone of China Unicom Guangdong's strategy
Leveraging 5G network slicing
At the core of China Unicom Guangdong’s success is 5G network slicing. This transformative technology enables operators to create multiple virtual networks on a single physical infrastructure. This allows the company to prioritise live streaming traffic, ensuring ultra-reliable and high-speed connections even during peak usage periods.
With network slicing, live streamers enjoy tailored uplink and downlink speeds, which are critical for activities such as broadcasting in 4K resolution or engaging in real-time interactive sessions. This level of customisation is a game-changer, particularly for professional streamers and content creators who rely on flawless performance to sustain their audiences.
AI-powered customer insights
Understanding the needs of high-value customers is crucial for targeted service offerings. By leveraging AI-driven analytics, China Unicom Guangdong identifies user preferences, data consumption patterns, and peak activity times. This intelligence allows the company to fine-tune its 5G live streaming package, enhancing both user satisfaction and operational efficiency.
For instance, AI models predict optimal pricing strategies and recommend value-added services, such as cloud storage for video content, or premium support for technical issues. This data-driven approach ensures the company stays ahead in a fiercely competitive market.
Deploying Huawei's SmartCare
China Unicom Guangdong has further strengthened its infrastructure with Huawei’s SmartCare solution. This platform provides real-time network performance monitoring and proactive issue resolution, ensuring uninterrupted streaming experiences. By addressing potential bottlenecks before they escalate, SmartCare upholds the network’s reliability – a critical factor in building trust among users.
An emphatic win-win for the business and customers
Boosting revenue with targeted services
The 76% surge in ARPU is a testament to the effectiveness of China Unicom Guangdong’s strategy. By catering specifically to a niche yet growing market segment, the company has unlocked new revenue streams whilst fostering customer loyalty.
The success also highlights the untapped potential within specialised 5G use cases, encouraging telecom operators to explore similar initiatives.
Growing their subscriber base
As of November 2024, China Unicom Guangdong’s live streaming package has created a community of 500,000 high-value subscribers. This underscores the demand for tailored, high-quality solutions. Moreover, by appealing to content creators and heavy data users, they have positioned themselves as a trusted partner in the fast-growing creator economy.
Strengthening customer loyalty
Providing exceptional service quality has a direct impact on customer retention. Streamers who rely on uninterrupted, HD broadcasts are unlikely to switch providers once their needs are met. This loyalty translates into sustained revenue growth and a robust competitive advantage for China Unicom Guangdong.
What can the wider telecom industry learn from China Unicom Guangdong’s success?
The importance of specialisation
Rather than offering generic 5G plans, China Unicom Guangdong identified a specific market need and developed a solution to meet it. This approach not only differentiates the brand, but also maximises the value of 5G technology.
The key role partnerships can play
Collaborating with technology providers like Huawei has been instrumental in achieving operational excellence. Such partnerships enable telecom operators to leverage advanced solutions, without the need to invest heavily in in-house development. The result is a faster time-to-market and enhanced service quality.
Scaling the model globally
Whilst this initiative is currently localised to Guangdong, its principles are universally applicable. Telecom operators worldwide can replicate the model by identifying high demand use cases, leveraging advanced technologies, and delivering customer-centric solutions.
What are the challenges and opportunities ahead?
China Unicom Guangdong’s innovative live streaming solutions represent a masterclass in 5G monetisation. But despite this undeniable success, scaling such initiatives does come with major challenges.
For instance, maintaining network quality during large-scale rollouts requires significant investment in infrastructure. Additionally, regulatory hurdles and spectrum allocation complexities may pose obstacles.
However, it’s important to note that the opportunities far outweigh the challenges. As 5G adoption grows, industries such as gaming, virtual reality, and telemedicine offer immense potential for similar monetisation strategies.
Make no mistake, China Unicom Guangdong has laid out the blueprint for others: the future of telecommunications lies in identifying high-value use cases and delivering unparalleled experiences. By continuing to innovate and adapt, telecom operators can unlock new dimensions of growth, and shape the future monetised connectivity.
Source: TM Forum
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