5G News: The key is how to divide the money

2021.12.11

5G News: The key is how to divide the money 5G news is a more gimmicky name, but in essence it has nothing to do with 5G. From a standard perspective, its original name should be RCS, which is a general term for services such as voice, messaging, and status presentation based on the IMS network proposed by the GSMA.

 Author: Yue Ming Source: C114 China Communications Network | 2021-12-11 07:38 Collection Share WOT Global Technology Innovation Conference 2022, 40% off tickets are in panic buying! An immediate discount of 2320 yuan on ticket purchases! 

 The 5G news that just fell silent is getting hot again! 

 This week, at China Unicom’s partner conference, China Unicom announced the establishment of the 5G messaging alliance and released five major plans in the 5G messaging field, including 5G messaging terminal development plan, 5G messaging application promotion plan, 5G messaging user experience plan, and 5G messaging green governance Plan, 5G message ecological empowerment plan. 

 It is reported that China Unicom intends to invest 1 billion resources to promote. He Biao, deputy general manager of China Unicom, pointed out that 5G news is a key project in China Unicom's large-scale application strategy. This is a stark difference from the ambiguous attitude of China Mobile and China Telecom. 

 Some netizens posted pictures on the Communication People’s Home Forum, saying that they had already activated 5G messaging service and successfully received China Unicom’s 5G message trial commercial discount experience package, 300 free per month, and use the Raiders to log in to China Unicom’s APP to search for 5G messages. But even with the strong endorsement of operators, can 5G news really have "message"? 

 What is 5G news 5G news is a more gimmicky name, but in essence it has nothing to do with 5G. From a standard perspective, its original name should be RCS, which is a general term for services such as voice, messaging, and status presentation based on the IMS network proposed by the GSMA. The first version of RCS, RCS 1.0, was released in 2008, and 13 years have passed.

 In China, some operators once promoted RCS for a period of time, but then it stopped. The main reason is that the initial stage of RCS is based on P2P applications. The standard is too complicated and it is an enhanced version of SMS; in 2017, RCS can switch to A2P applications and begin to be accepted by more operators. Up to now, there are about 100+ operators in the world commercial RCS. 

 Since it is not inevitable, why is it called 5G news? Because 5G needs more business models and business stories, and the high-speed connection capability of 5G networks can also bring a better experience to RCS. Therefore, the 5G news has been "born out of nowhere." What are the advantages of 5G messaging Compared with SMS, early RCS products, and even WeChat, 5G messaging still has some technical advantages.

First, 5G messaging breaks through the limitations of traditional short messages on message length and content format, and supports multiple media formats. Developers can develop lightweight applications based on the above capabilities, freeing telecom users from the trouble of frequent APP installation, and can help users Provide a new experience. This poses a challenge for many lightweight and tool apps. 

 Second, 5G messages inherit many advantages of short message services. Relying on the telecommunication code number system and telecommunication-level authentication technology, 5G messages have the natural advantages of wide service coverage, high reach and good credibility. This is similar to WeChat based on the social relationship chain. 

 Third, the user group of 5G messaging is very rich, including personal messaging services, industry messaging services, and enhanced calls involving messaging services. Both individual users and industry users can get a new message service experience, especially the introduction of the MaaP concept, which can expand new space for the integration of various industries and the information and communication industry. 

 The status quo of 5G messaging From a standard perspective, the approval of the "General Technical Requirements for 5G Messages" and "Technical Requirements for 5G Message Terminals" indicates that the series of standards have the conditions to guide enterprises in the practice of 5G messaging. 

 From the perspective of current network operations, China Mobile, China Telecom, and China Unicom jointly announced the construction of 5G messaging in April 2020, and they all have the basic commercial conditions now. At the annual partner conferences of the three major operators, they also announced the news of the trial commercial use of 5G news, but did not see much action in the follow-up.

 In fact, this is also normal, because the successful commercialization of 5G news still faces several big mountains!

First, the business model changes. Operators need to change from a short message model to an ecological model, and from making quick money to ecological cultivation. The SMS mode is simple and rude, and the amount is large and the amount is discounted. Judging from China Unicom’s trial commercial use, users have 300 free messages per month, which is still a proper SMS thinking. 

 Second, the support of the terminal. 5G messaging is a native application, which requires terminal support. But to this day, there are still only a handful of terminals that support 5G messages. Take the terminal that supports China Unicom's 5G message as an example, and there are only three manufacturers, Youchangxiang, ZTE, and Samsung. 

 Among them, Youchang enjoys one (30e Qualcomm version), ZTE has eight, and Samsung has one. Regardless of whether it is in terms of existing terminals or new users, the influence of these models in the domestic market is minimal.

 5G News: The key is how to divide the money The reason for this situation is actually not difficult to understand. Because 5G news has touched the cheese of terminal manufacturers, and operators have completely lost control of the terminal market. 

 Why do you say that? In the profit model of terminal manufacturers, through pre-installed software, application stores, and terminal-based lightweight applications, they can all charge part of the service fee. Once the 5G messaging business is rolled out, it will inevitably affect their revenue , They are definitely unwilling to pre-install 5G messages.

 On the other hand, the terminal market is not in the 3G era for a long time, and operators control everything through centralized procurement. With the reduction of subsidies, operators no longer have the upper hand in the game with terminal manufacturers. 

 Operators feel that this is an upgrade of SMS. In the SMS business model, operators are dominant and will certainly not divide the money; terminal manufacturers believe that 5G messages have moved their own cakes. If they can’t get a share of it, they can’t support it natively. My game, my turf, my rules". 

 As for application open companies, whether they are traditional SP or SDK vendors, they are unwilling to invest more when the development platform, development tools, business model, etc. are not mature. This results in fewer types of existing applications and poor user experience. . 

 In summary, the key to making big money with 5G news is not how to make money, but how to divide it!