The telecoms industry is on the verge of entering a new 'golden age' led by video services, claims Huawei in a new report first released at the European Mobile Video Forum (12th September, Amsterdam).
The company urged European operators to capitalise on mobile video by leveraging their advantages in terms of technology, economies and content.
Ken Wang, President of Global Marketing and Solutions Sales for Huawei's Carrier Business Group, said: "It is clear that European operators should update their strategies and business models to unleash the potential of the mobile video market.
"Intelligent devices with cameras are now more common, more social platform videos are being created and spread in an easier way, and virtual reality and augmented reality technologies are developing on a large scale.
"For carriers such as LG Uplus in Korea video services now contribute over 20% of the total revenue."
Qiu Heng, President of Huawei Wireless Network Marketing Operation, noted that video is the driving force for an 'explosive increase' in network traffic.
He added: "The three operation modes of mobile video include traffic operation, platform operation and ecosystem operation, and European operators are ready for mobile video growth."
Huawei's mobile video report highlighted that Western Europe scores well across key technology dimensions including high smartphone penetration, LTE coverage and Wi-Fi penetration, all critical enablers for mobile video growth.
Western Europe also leads in the economic dimension by offering affordable mobile data packages, noted the report.
"But when it comes to facilitating the fast growth of mobile video consumption and innovative monetisation models, European mobile operators lag behind those in North America and advanced Asia Pacific countries," added Nitesh Patel, Director of Wireless Media Strategies, Strategy Analytics.
"This may in part be due to different market characteristics such as an aging population less inclined to fully embrace mobile video when compared with a younger generation in Asia Pacific.
"Operators in Europe are also hampered by consumers' concerns over data consumption and average cost.
"Western European mobile operators should strive to reclaim leadership in innovation and differentiation and provide consumer centric and video centric approaches to address the growth opportunity of the mobile video market."
At the forum Heng put a spotlight on operators such as LG Uplus, T-Mobile in the USA and Verizon which have demonstrated a strong ambition to monetise video content.
"These operators have introduced innovative pricing models including zero-rating video traffic, enabling sponsored data, offering video-centric tariffs and by launching their own branded mobile video apps and services to tap new sources of revenue," he said.
"Some leading European mobile operators are already exploring the use of video services and they are seeing increasing revenue as a result. We would like to see more European mobile operators consider similar approaches to maximise growing demand for mobile video."