China Internet Situation Analysis and Trend Determination

main problem

â–  Three networks merged to promote development

In the third quarter, SARFT launched a heavy blow to further regulate the Internet TV market. It not only required major video sites to be operated legally and compliantly, but also sent clear signals to TV terminal manufacturers. It is mainly to strengthen the management and control of OTT Internet TV and other radio and television field services. The practices and services that were previously in the gray area of ​​OTT will be gradually corrected. At the same time, operators' IPTV services are also strictly limited. This measure protects the interests of the cable television network, but it violates the principle of triple-entry access that allows triple-play access. According to the planning schedule of triple play, 2013-2015 will fully realize the development of triple play. However, according to the current development situation, it is difficult to achieve triple play on schedule.

â–  Obstacles for Internet companies to enter traditional industries

In recent years, although the Internet has greatly changed the mode of operation, appearance, and pattern of traditional industries, Internet companies have not been able to enter the traditional industry and have been met with resistance from many aspects.

Take the transportation industry as an example. On July 17, the Ministry of Communications announced the "Notice of the General Office of the Ministry of Transport on Promoting the Orderly Development of Call-for-Car Rental Services for Mobile Phone Software, etc." and the "Notice" proposed that the taxi call service will achieve unified access management. Gradually realize the demand for information on electric calls through the unified management of urban taxi service management information platform; at the airport and train station, passengers may not be queuing in the queuing area through the mobile phone calling software. The "Notice" is based on regulatory considerations. It can indeed play a role in regulating the use of mobile phones and telephone taxis. However, the unified access management of taxi driver software may not be optimistic about actual results and operability. The most crucial point is that the “Notice” has impaired the enthusiasm of Internet companies such as taxis to launch taxi services, hindered the equal market competition between Internet companies and the traditional rental industry, and the administrative control stemming from the traditional pattern of interests restricted the development of Internet companies. space.

â–  P2P network platform needs policy specification

In 2014, the P2P industry became increasingly popular. P2P online loans grew at an average rate of one platform per day. As of June 2014, the number of platforms reached 1,263. The half year turnover was close to 100 billion yuan and more than 290,000 effective investors. Behind the booming of P2P, negative news such as the collapse of the platform and money running are also common. At the same time, P2P's normative problems are increasingly on the agenda.

At present, P2P still belongs to the "three-nothing" industry, "no threshold, no industry standard, no regulatory authority," and urgently requires policy specification. In order to maintain effective operation, the platform has to increase guarantees and compensation functions. As a result, the P2P platform becomes a credit intermediary, and in effect becomes a small bank for deposit and loan business. What is more, it uses the P2P platform for illegal fund raising and money to make money. The nature and function of the P2P platform as an "information mediator" has been lost, and it has brought serious risks. In order to promote the healthy development of the P2P platform, it is necessary to vigorously regulate, determine the competent authorities as soon as possible, and issue effective supervision measures.

Fourth quarter trend judgment

â–  Covering the entire 4G network will begin to take shape

At the end of last year, China Mobile had decided to complete the strategic goal of “building 500,000 4G base stations by the end of the year and providing 4G services in more than 340 cities by the end of the year, and basically achieving continuous coverage of cities and counties in the country and key townships”. Speed ​​up the construction of the world's largest 4G network; in the first three quarters of 2014, 3G and 4G cities in Zhejiang, Hubei, Guangxi, Liaoning, Inner Mongolia and other places have started 4G commercial applications. China Telecom and China Unicom have also accelerated the pace of commercialization of 4G networks.

In addition, the three major operators have launched dozens of 4G mobile terminals and formulated corresponding terminal marketing strategies and product plans to accelerate the popularization of 4G networks from the perspective of the terminal industry chain. With the establishment of the Tower Company in the third quarter and the issuance of the LTE-FDD trial commercial operation permit by the Ministry of Industry and Information Technology, the domestic 4G network construction will be further accelerated. It is estimated that by the end of this year, up to one million 4G base stations may be built in China, and the coverage of the nationwide 4G network will begin to take shape.

â–  Internet content supervision will be more stringent

Faced with the rapid growth of users of social networks and instant messaging tools such as Weibo, WeChat, etc. that are fast-spread, influential, widely-covered, and socially mobilized, online media management and industrial management are lagging behind the development of the situation. At present, how to effectively guide public opinion in the world, regulate content production and management, ensure the order of online information dissemination, and ensure national security and social stability are very urgent.

It is expected that in the fourth quarter, Internet content management will be further strengthened, and the Internet industry management system combining legal regulations, administrative supervision, industry self-discipline, and technical security will gradually be formed, and pornographic website rectification and other work will be effectively implemented.

â–  Various intelligent terminals will emerge in large numbers

Smart terminals represent the frontiers of global information technology innovation. With the rise and evolution of the mobile Internet era, people's consumer demand for smart terminals is increasing, and various new types of smart terminals are emerging.

At the end of June, Google released the AndroidWare system for wearable devices and GoogleFit, a health management platform, at the Google I/O conference held in San Francisco. In September, Apple introduced a new generation of smart phones - iPhone6 ​​series products, while launching a new generation of smart watches Applewatch, which led to a new round of "neutral purchase" wave.

It is expected that new intelligent terminals will emerge in the fourth quarter. With the advancement of information technology and the continuous maturity of software and hardware service systems, wearable devices will lead the next wave of smart terminals. In addition, the trend of in-vehicle product Internetization is obvious, and the market for vehicle-mounted smart terminals will also be opened quickly. The rapid penetration of the Internet into the automotive industry will trigger a revolution.

â–  Internetization of traditional industries will further accelerate

The changes in the Internet industry are accelerating, and the pace of subversion of traditional industries is accelerating. WeChat is subverting the traditional telecommunications industry. Internet finance challenges the traditional banking industry, while big data brings precision services. From the earliest retail industry to today's financial, real estate, automotive, medical, education, tourism, film, and lifestyle services, the Internet has profoundly affected the pattern of traditional industries and is brewing the subversion of business models and changes in lifestyle.

At the same time, more and more companies have already walked in the way of industrial Internetization. Among them, large-scale traditional enterprises such as Rongchang Laundry, Huayi Brothers, and SF Express have become typical of the Internet in the industry.

It is expected that the traditional industry will further accelerate the process of Internetization in the fourth quarter. The Internet will further impact traditional industries such as finance, education, retail, transportation, and broadcasting, and the traditional industries will also further accelerate cross-border integration with the Internet, thus affecting and changing the industry's competitive landscape.

â–  A new wave of Internet entrepreneurship is coming soon

At present, the Internet business environment is getting better. In the context of the Chinese government's efforts to promote innovation-driven development strategies and focus on supporting the development of small and medium-sized enterprises, Alibaba’s listing will undoubtedly have a very typical demonstration effect.

The Internet economy has become a new engine for leading consumption, expanding domestic demand, and boosting the economy. Alibaba promotes the growth of small and medium-sized enterprises. This makes Ma Yun a typical representative of the entrepreneurial market, and has made many Internet SMEs find a new path for growth. . In the fourth quarter, it is expected that the incentive for Alibaba’s listing will trigger a new wave of Internet entrepreneurship. More Internet entrepreneurs will be encouraged by the successful demonstration of Ali listing and Ma Yun, starting from the start-ups of small and medium-sized enterprises and e-commerce professionals. In order to achieve breakthroughs in innovation in the field of segmentation and subdivision, the vertical and “small and beautiful” business era is coming.