Since T-Mobile launched the un-carrier strategy in March 2013, after two years of rapid progress, the growth rate of users has slowed down slightly, the growth of business revenue has slowed month-on-month, the growth of postpaid users has slowed down, and the churn rate has increased. Commercial means stimulate the market to accelerate.
Since T-Mobile launched the un-carrier strategy in March 2013, after two years of rapid progress, the growth rate of users has slowed down slightly, the growth of business revenue has slowed month-on-month, the growth of postpaid users has slowed down, and the churn rate has increased. Commercial means stimulate the market to accelerate. At the same time, American users’ preference for watching videos has gradually shifted from TVs and PCs to mobile terminals. Smartphones have become the first screen for video viewing, accounting for 57% of the total. Video is currently the largest business in mobile traffic, and it is also the main reason why users’ actual traffic exceeds the package and leads to extra payment. Compared with other operators in the United States, T-Mobile users have the highest video content usage. In May 2015, AT&T acquired it. Direct TV and Verizon acquired AOL, all major operators have demonstrated their firm determination to do video business in the future.
T-Mobile launched the Binge On video service on November 10, 2015, allowing users to watch videos with confidence: users who meet the conditions (users with a 6GB package or above) can watch the current popular video services in the United States for free. Such as Youtube, Netflix, HBO, Sling, etc., and even competitors AT&T’s Direct TV, Verizon’s Go 90 video business. The number of free video OTTs has reached 81 and continues to grow. This free fee is only for traffic and does not include OTT content subscription fees. Other users who cannot avoid traffic, or when all users watch video services that are not in this list (such as Facebook), can enjoy the benefit of 3 times the viewing time of the same traffic. T-Mobile quickly cooperated with as many as 81 OTTs, and users’ mobile video consumption is much higher than other operators. Compared with 2015Q3 revenue, 2016Q1 revenue increased by 10%, and the net increase in user market share in 2015Q4 and 2016Q1 exceeded 65% for two consecutive quarters. Second only to Verizon in customer satisfaction, and the most innovative carrier brand in the United States.
Binge On mode releases user depression and focuses on attracting more video users. For operators, the growth of ARPU comes from the upgrade of tariff packages and the viewing of high-resolution videos. As the viewing time of users increases, OTT can simultaneously increase Forward and backward income. It has created an innovative business model with a win-win situation for operators, users and OTT, helping T-Mobile to achieve rapid business success.
Huawei’s Video Go solution can help operators successfully replicate this innovative business model. Resolution adjustment and adaptation, flexible billing, and open APIs are key technological innovations to realize new business models. With a mature video experience evaluation system, targeted experience network construction solutions, based on video user and traffic growth forecast, network simulation and planning are carried out, and a series of solutions such as CA, high-order MIMO, coverage enhancement, CDN sinking, and TCP acceleration are implemented. The customized combination of solutions achieves the goal of improving video experience; intelligently schedules network resources and reduces network operation and maintenance costs by means of inspiration and accurate identification of video content, video bit rate coordination, and panoramic billing; network APIs are opened to OTT, and OTT is based on user attributes. (Subscribed users/non-contracted users) control the scheduling of video content, and provide powerful video protection solutions to prevent billing fraud by means of directional traffic and enhanced authentication, helping operators achieve business win-win with OTT.