Today, the digital society is at a new starting point. Digitalization has changed key features of new-generation business ecosystems and blurred the boundaries of closely-connected industries. Mutual penetration leads to value transfer, integrated collaboration, win-win relationships, and valuable growth. The new open digital economy is a diamond-shaped industry representing a significant shift from vertical integration to horizontal integration. The diamond has three roles from the bottom to the top: communications & cloud infrastructure provider, service provider, and service retailer.

In the digital economy, carrier business scenarios include the smart connectivity, enablement, and digital player. They start to transform from the communication service provider (CSP) to the digital service provider (DSP), changing their operation contents and modes. To help carriers survive business transformation, Huawei offers key pivot points: aggregation, inter-dependent, open, and intelligent (AIOI).

Aggregation: Carriers aggregate a large volume of partners to offer diverse services and contents for users, expand customer bases, and build an inter-dependent ecosystem. Huawei helps carriers build a digital business ecosystem and offer innovative operation modes and services to liquidate customer assets, enhance profitability, build new value chains, and take the initiative in the following fields:

• Music: Aggregate contents to explore operation opportunities and keep relevant in the CRBT market. Relay on inventory operation in 2014. Refine operation to aggregate digital music in 2015. Offer operation-critical E2E digital music solutions in 2016.
• Game: Build game distribution channels. Open services to gather players and build entrances in 2014. Build the backward charging mode and enhance channels in 2015. Integrate contents, channels, and operations in 2016.
• Family: Change the bare box sales mode, create a Huawei user platform to build a terminal ecosystem, explore multi-screen family interconnection, promote scale growth of users, and achieve win-win cooperation.
• Enterprise: Build an Internet-architecture public cloud based on the capability enabling platform, explore the communications capability, aggregate cloud-based contact centers, video surveillance, tracking, conferencing, Internet of vehicles, and hosting services. Import global resources from a single site to share network-wide services, increase the enterprise user scale, and reap lasting benefits.
• M2M: Build a unified platform to optimize service integration in vertical industries. Build an M2M capability aggregation platform in 2014. Offer data management and business management, and construct sample sites in 2015 and 2016. Expand the presence into logistics, transportation, and healthcare fields from 2016 to 2018.

   

  Openness: Based on openness, carriers build inter-dependent value chains with partners. Huawei offers an open framework for carriers to open eight types of capabilities: real-time communication, charging and payment, context information, data and information, network optimization, and cloud service in 2013 and 2014; service, application, management, and supply processes in 2015 and 2016. Based on diverse business modes, such as B2B2B, B2B2C, and B2C, Huawei builds a variety of business application scenarios for carriers to increase direct or indirect revenue. Huawei builds a platform-critical industry chain for carriers to implement successful transformation in individual, family, enterprise, and industry fields, serve partners. Huawei offers capability opening solutions and new business modes based on the "platform, service, and operation" structure, which keeps carriers competitive in harsh competitions at the Internet age.

  Inter-dependence: Inter-dependence is a business mode in which carriers share values and risks to enable the seamless integration of physical and digital services. Carriers can use this business mode to quickly deploy a large amount of new services to meet customer requirements, perform customer-centric asset operation, and upgrade their outdated business modes.

  Traffic operation has become an industry trend. Traffic economy combines traffic and customer values. This is a process of adding and adhering traffic values, instead of distributing them. Carriers need a more intelligent channel to gain advantages in business competition. To sum up, carriers need to leverage their advantages to locate their digital assets and maximize their usage. Digital reconstruction in the new era is available only when carriers can use and monetize their digital assets.

  Huawei and global carriers are making great efforts in digital service transformation.

  DOCOMO invests in and procures other companies to efficiently gain presence in vertical industries. By converging local resources such as terminals, contents, and applications, DOCOMO can provide diverse services (including cloud services). In 2015, digital services will bring a total of EUR10 billion.

  China Mobile established nine service bases to enter vertical fields, such as music, game, Internet, and online reading. This allows China Mobile to achieve cross-industry integration, develop new value chains, and perform service innovation.

  Axiata aims to provide digital life services. In 2013, XL increased its total income by 57%, attracted 287 new partners, and releases 4080 new services. Celcom doubled its income within four months and completed 125% of its annual KPI. Axiata plans to develop an open ecosystem to achieve USD billions of income in the field of digital services.

  Telefonica established Telefonica Digital. The group developed multiple industry services and deployed diverse service platforms in a unified manner. By sharing its services and applications, Telefonica is changing the industry. In 2011, Telefonica achieved an annual income of EUR2.4 billion. In 2012, this number increased to EUR3 billion. In 2014, Telefonica is estimated to have a total annual income of EUR5 billion.

  The digital economy era brings us great opportunities and challenges. Now we have a chance to utilized digital services and achieve great leaps in business development. We need to change our thinking and actively participate in digital transformation to seize this opportunity. We need not only to change, but also to change fast, to ensure our existence and future development in the incoming new era.