Telecommunication industry fees: What to do is "really really drop"?

"High-speed smooth, urban and rural coverage, high quality and low price, and convenient service" ... The State Council has recently proposed this goal in the guideline on accelerating the construction of high-speed broadband network to accelerate the network speed-down fee can be landed? In the voice of doubts, can thousands of telecom consumers and enterprises really feel a sense of satisfaction?

It is advisable to look at the amount of things. Standing in the “Internet +” era, telecom operators can only improve their service capabilities, improve operational efficiency, and orderly opening up the telecom market, and give full play to the innovative capacity of private capital. This will enable them to serve hundreds of millions of subscribers, and thus help the new normal China's economic development.

The speed of the internet doubled overnight, and it was necessary for the prime minister to call a message

In the current situation of fierce competition from multiple operators, whether it is home users or group users, "with the width, how fast the Internet," "seal rights" in the property. In order to grab resources, even front-line personnel of individual operators were forced to bribe property companies in the name of “free travel abroad”.

“In one word, the Prime Minister said that the speed of the Internet doubled.” Engineer Qiang Qiang (a pseudonym) discovered on the morning of the 15th that Unicom's fixed network download speed increased to 4.11Mbps (megabits per second), which is twice as fast as historical downloads. In the morning, the Ministry of Industry and Information Technology and the three major operators announced new measures for tariff reform. On the Internet, Premier Li Keqiang’s urging for “speeding up the internet and reducing network fees” is spreading.

The industry insider at China Unicom's Beijing branch said that with so many years of work, such a large-scale whole-network acceleration is extremely rare, and even more rare is that all speed-up work is completed within one day.

Behind the speeding pace that internal engineers are surprised at, the consumer is concerned about "so much bandwidth, where are you going?"

According to Zhao Qiang's description, the reporter called China Unicom's South Beach Business Office. The staff told Zhao Qiang that the residential area was "20 megabytes of fiber to enter the building," meaning that the maximum download speed per household was 2.5 Mbps. When the reporter asked whether there was further room for speeding up, the staff explained that "5 trillion and 10 trillion users can all double speed directly before mid-June, while 20 million users have no space for speed increase and can only wait for the next expansion. ".

Zhao Qiang purchased precisely the "20Mb fiber-year-old" service. According to the technical requirements of the industry, the download speed was calculated to be one to eight, and the network bandwidth corresponding to the download speed of 4.11Mbps had exceeded 30 trillion. The explanation in the business office was obviously inconsistent with the actual situation. Then the implicit bandwidth that could have been released was so presumptuous for the Prime Minister?

The operator has no hardships, neither does it.

Liu Lei is an internet company founder. After seeing the news that operators have reduced the speed of fees and charges, he hopes to open a 100M fiber-to-the-home service at home. However, he was told that “the residential area does not support fiber to the home”.

"Not only did the 20MB broadband at home not grow, but the current price also fell by nearly 300 yuan over the previous year's annual fee. We can't add money to speed up. Isn't it possible for the loss to be recovered?" With this question, he called the service hotline in succession. And visit Unicom business hall, were told that can not handle, unable to pay, and for further expansion of the growth request, the staff's reply is "this decision in the 'living property'".

"The speed of bandwidth decision in the 'residential property'?" The reporter repeatedly asked, another China Unicom engineer told the story. In the current situation of fierce competition from multiple operators, whether it is home users or group users, "with the width, how fast the Internet," "seal rights" in the property.

The engineer, who worked in various communities and property all year round, said that the new district is better. The old and half-aged and old districts have been carrying out broadband transformation and have had many "famous halls." In addition to normal guest gifts and profit commissions, front-line personnel of individual operators have been forced to bribe property companies in the name of “free travel abroad” in order to snatch resources. These hidden costs in the construction of residential fixed-line networks and mobile base stations are labeled as “infrastructure construction costs”. Most of them are posted by operators, and the hidden costs of some network users are even shared by operators and owners. Once the transformation of the equipment involved in the expansion of the community requires equipment, new “seeking space” will appear.

The State Administration’s opinion on speed reduction and fee reduction clearly stated that by the end of 2015, more than 80% of households in urban districts and some non-district cities with qualified conditions had 100Mbps fiber access capacity, and requested to reduce 100M fiber access. Net fee.

From this point of view, to achieve this goal, operators still urgently need to “blow storms.” In addition to squeezing out their idle speed, we must also promote the establishment of an open and transparent bidding mechanism, and remove the existence of such links as entering the home. The "Invisible Threshold".

This is to strengthen competition, virtual operators are so "virtual"

The "wholesale" prices of the three basic operators to virtual operators are even higher than the retail prices of some ordinary consumers. At the same time, there are still problems such as unscientific resource allocation mechanism and incompatibility of data connection. The “virtual business” is really a “virtual” business. “Virtual operators are now a chicken rib; the three basic operators are both referees and athletes, and small and medium-sized private enterprises. How to compete with them?” said Mo Guangwei, former director of marketing for Snail Mobile, a telecoms expert and virtual operator.

Virtual operators, ie agents, contract the use rights of some communication networks from mobile, China Unicom, and telecom operators, and then sell their communication services to consumers through their own billing systems, customer service numbers, marketing, and management systems. By.

At the end of 2013, the Ministry of Industry and Information Technology issued the first batch of pilot approvals for mobile communication resale services. Up to now, 42 private enterprises in China have obtained virtual operator licenses. According to statistics from the China Virtual Operator Industry Alliance, the number of virtual operators currently using segment 170 is just over 5 million, while the number of mobile phone users in China has reached 1.293 billion. The public opinion originally expected that 42 "squid" in the "travel" market could strengthen competition, but the user numbers themselves indicate problems.

"Piling upside down," Zou Xueyong, secretary-general of the China Virtual Operators Industry Alliance, raised the issue. At present, the "basic wholesale" prices of the three basic operators to virtual operators are even higher than the retail prices of some ordinary consumers. At the same time, there are still problems such as unscientific resource allocation mechanism and incompatibility of data connection. The “virtual business” is really a “virtual” business.

The reporters interviewed on the spot in Beijing, Shanghai, and Anhui Provinces and found that although the three major operators have given "virtualization" to virtual operators, the problems of high purchase price, narrow space, and many restrictions are widespread.

To make "carp" stir the pool water, there must be other supporting measures. Weng Zhen, head of the Resales Business Department of Gome Anhui Branch, said: "For instance, bank and other special organizations do not recognize the telephone number of the No. 170 segment in the telephone banking business, and it also adds difficulties to the daily use of the "virtual business" users."

The “external imaginary” of inequality in competition has also led to “negative internality” of service quality to some extent. Sun Rui, an early operator of the virtual operator Suning, said that the virtual operator's customer service is relatively poor. Due to the widespread use of smart customer service, recharging is difficult, finding a living person is difficult, and difficult to solve is particularly prominent.

In order to actually promote competition, the State Office requested in the opinion to continue to promote the opening pilot of mobile communication resale business, and achieve full opening in 2016.

Zhang Jinghai, vice president of the 263 mobile communications company with a virtual operator license, believes that the "speed increase and fee reduction" proposed by the state is a good thing for "virtual business", and "speed increase and decrease of fee is for the basic operator, and "virtual business" service. It should have its own value. Under the premise of sufficient communication requirements, it will further satisfy the individualized demands of the market segments, make the market more active, and have more options for users."

Mo Guangwei said that some companies with “virtual business” licenses do not make money or even post some money to promote their mobile communication resale business, and infiltrate into their main business such as mobile games and e-commerce. As their business model matures, it will "stir" the telecom market's "three pillars."

"The future competition in the telecommunications market will surely become more intense. The three traditional infrastructure operators will face greater challenges, not only from the mobile operators of virtual operators, but also private broadband services," said Zou Xueyong.

According to comments, China's broadband access business has opened more than 100 pilot companies by the end of 2015, driving private capital investment by more than 10 billion yuan, and pilot cities have increased from 16 to more than 30 pilot cities in 2017. "100 companies to join the broadband business competition, the people's choices are more. If you can not do a good service at high speed and low price, what to fight customers?" Zou Xueyong said.

How Telecoms Should Pave the Way for "Internet Plus"

Even for the basic operators, speed-up and fee-down will not only affect earnings, but will be the only way to become strong.

For operators, in addition to directly collecting traffic charges, they should also tap the “data economy” behind the traffic.

“Broadband network is a national strategic public infrastructure.” Yu Yang, founder of Analysys International, strongly agrees with this statement in the comments. “I believe that after more than a decade, the Internet will no longer be considered as an industry because all companies will Become an Internet company. The Internet, like water and gas, is an indispensable basic resource for daily life."

As an Internet TV company, Cheng Hongrong, general manager of Mango TV Internet TV, said that with the acceleration of hardware upgrades such as Internet TV, smart home, and wearable devices, the demand for speed has also increased. For Internet TV companies, lowering fees and charges will effectively promote the development of home business, and will bring a huge boost to the entire Internet industry, especially home Internet applications. "The real cost reduction will really accelerate the promotion of the industry and the overall economy," he said.

Even for the basic operators, speeding up fees and charges will not only affect earnings, but will be the only way to a strong one.

Data from the Ministry of Industry and Information Technology shows that compared with 2011, mobile tariffs have fallen by 60%, and broadband tariffs have dropped by about 30%. However, the reporter checked the operator’s financial report and found that during the same period, the growth rate of the operators did not fall. Compared with 2011, China Mobile's data service revenue increased by over 80% in 2014; China Telecom's cable broadband access revenue increased by more than 20%, and the number of subscribers increased by nearly 40%.

Even if the number of new subscribers of operators is slowing down, the number of networked devices is still increasing, which also opens a new revenue blue ocean for operators. According to two forecast data from the International Consumer Electronics Show (CES) and the Huawei Network Conference (HNC), 25 billion terminals will be connected to the Internet globally by 2020, and the number of IoT devices will approach 100 billion by 2025 - ―In the face of such a fast-growing Internet market, the small profits and quick sales brought about by quicker price cuts are not empty talk.

Xiang Xianggang, CEO of Feixiang.com, and Fu Liang, a well-known telecommunications expert, suggested that operators should accelerate the popularization of 4G networks and allow more users to use advanced technologies. This can fundamentally reduce telecommunications charges. For operators, in addition to directly collecting traffic charges, they should also tap the "data economy" behind the traffic.

In his opinion, compared with Internet companies, operators have more advantages in doing smart applications. For example, China Telecom's “Sales Manager” tailored for Anhui Golden Seed Group not only allows companies to easily communicate with more than 300 dealers and 14,000 sales personnel, but also uses technologies such as photographing and positioning to realize real-time transmission of business data. Enterprise management realizes "Internet +".

This, at the moment, is a shortcoming in the basic operator business. China Mobile’s 2014 financial report shows that of its operating revenue of more than RMB 640 billion, the application and information service business accounts for only 10% of the total, and the vast majority of revenue still comes from call charges and traffic charges.

Experts such as Fu Liang suggested that in the face of a “data economy” that is not in the ascendant, operators should not just be the traffic providers who collect money from the land, but also must make reasonable use of resource advantages such as data warehousing to become an irreplaceable data service provider.

"This and the 'speed increase and decrease fee' support is completed, it is a win-win situation for telecommunications companies and customers." Fu Liang said.

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