Most people are not familiar with virtual operators. Simply put, unlike basic telecommunications operators, virtual operators do not need to build telecommunications networks, and usually provide basic telecommunications operators with a network to provide end users with telecommunications services and related services. The concept of virtual operator was mentioned in 2005, but there has been no substantial progress in the years since.
In May 2010, the State Council promulgated "Several Opinions on Encouraging and Guiding the Healthy Development of Private Investment", which deepened the scope and scope of private investment and encouraged and guided private capital to enter the basic industries and infrastructure, including the telecommunications industry. In June 2012, the "Implementation Opinions on Encouraging and Guiding Private Capital to Further Enter the Telecommunications Industry" was issued, and the "Pilot for Private Capital to Launch Mobile Communications Resale Business" was clearly encouraged. In January 2013, the Ministry of Industry and Information Technology publicly solicited opinions on the "Mobile Communications Resale Business Pilot Program", during which 48 written feedbacks were received; in May 2013, the "Mobile Communications Resale Business Pilot Program" was released. According to the "Plan", the communication resale business enterprise that obtained the pilot approval at that time can not only purchase mobile communication services from the basic telecommunications business operator, repackage the service content, but also use its own brand to carry out mobile voice, SMS / MMS , Mobile data, etc. According to the provisions of the "Plan", the first domestic virtual operator may be born in October this year.
Virtual operators have gone through the process of "good things and more grinding" from the conception to the gradual landing. Will the introduction of this "plan" and its subsequent influence make the "long development" of virtual operators in China a powerful boost? Zero2IPO Research Center believes that the issuance of pilot policies for virtual operators ’mobile communications resale business will inevitably have a positive significance in China ’s telecommunications industry, but the practical development of virtual operators in China is a protracted battle.
According to the provisions in the "Plan", there are still many rules for obtaining a virtual operator license. The Ministry of Industry and Information Technology and the related departments can clearly see the prudent attitude of private capital in entering China's basic telecommunications industry. Applicants for virtual operation licenses must be private companies, and their private capital must not account for less than 50% of the company ’s capital. The Plan specifically states that private companies with more than 10% foreign equity will not be allowed to apply for licenses . As a result, Internet companies listed on Tencent and other overseas companies that have implemented agreement control will be excluded from the scope of applicants, and JD.com may not be eligible for license applications. In addition, Hong Kong, Macao and Taiwan companies are also not eligible to apply for virtual operator licenses.
China's telecommunications market is already in the Red Sea. After the one-way charging of mobile phone calls and the adjustment of long-distance tariffs, the profit margin of the voice call market has narrowed significantly. The continued development of the mobile Internet and OTT markets in recent years has also squeezed the voice call and SMS / MMS markets to a considerable extent. Before the start of the mobile Internet, the competition in China's telecommunications industry was always wandering among the three major operators. Today, driven by the strong development of the mobile Internet, China's telecommunications industry is facing unprecedented pressure: Not only has the market competition continued to increase in intensity, but the competition participants have also become more diversified. At this time, the introduction of virtual operators, we do not know how to improve the competitive environment of the telecommunications market. This background makes the issuance of virtual operator licenses reveal a little taste of "chicken ribs".
Of course, the future market potential of virtual operations is huge. According to data from the Ministry of Industry and Information Technology, in 2012, China's telecommunications business revenue reached 1.08 trillion yuan. If we take the data of 3% of the virtual operating business market share in the global telecommunications market as a reference, the scale of China's virtual operating business market may reach 30 billion yuan. In addition to the market potential is worthy of recognition, from the perspective of filling the market gap and diversifying the market level, virtual operators also have their existence value. How to tap the differentiated value of virtual operators in the market and how to use virtual operator licenses properly are all issues that require serious consideration.
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