Will market imbalances repeat themselves?

Liu Shan/Wen market forces are an important concept in economics, which refers to the ability of manufacturers to raise prices above marginal costs through profitable means. The average manufacturer can gain a certain market power in the real world but it is limited, but the monopoly that has no competitor challenge can capture the market power as big as possible.　　Monopoly firms will abuse dominant market position to restrain rivals ' growth, form strong market barriers to potential entrants, hinder effective competition, on the other hand, the power of monopoly restricts the exertion of more efficient market competition mechanism, and the monopoly enterprise itself lacks efficiency. Because of its transverse whole network characteristic, vertical technology correlation characteristic, heterogeneous substitution characteristic, scale economy and scope economy, the telecommunication industry is generally recognized as a strong monopoly property. For the market power of monopoly manufacturers in the telecom industry, "a single big", the government has long adopted the restructuring and the introduction of competitors to achieve the market power of the telecommunications market balance, such as the United States At&t, China Unicom's formation and the split of Chinese telecom, However, these approaches are at the expense of a large amount of resource consumption. After splitting the reorganization, after a period of time will still circulate the market monopoly market power problem, such as at&t after splitting up after the merger regain market dominance. With the integration of "three networks" and the reorganization of telecommunications in the world, the telecom industry has entered the whole business Operation era.　　From the point of view of the fundamental problem-solving, we need to preventive the control ideas, analyze the characteristics of the telecom market in the whole business Operation era and supervise the monopoly market forces, so as to avoid the future use of drastic resolution. Full business Operation challenge the operators can find that the whole business operation has many advantages, that is, the whole business operation is beneficial to disperse the market operation risk and ensure the sustainable development by using the international experience of telecom operation. It is beneficial for enterprises to generate incremental revenue in the broader market expansion space, while satisfying the integration and personalized service needs of customers, and enabling enterprises to make full use of a large number of common basic measures to achieve more economical resource allocation and sharing, and improve resource utilization. The world's United States at&t, Japan KDDI, Germany Telecom, France Telecom and other international telecommunications operators through the full business operation has achieved good results. However, full business operation is an opportunity and a challenge for telecom operators. The whole business operation also has the problem of diversifying the resources and weakening the core business development of the enterprise.　　Who can adapt to the rules of business operations, play the advantages, and take measures to reduce adverse effects, who will be able to gain competitive advantage. From the structure of the telecommunications market, according to the level and vertical two latitude division, can be divided into three-tier structure, the first layer for the factor market, the second layer for the network market, the third layer for the application market, each layer can be subdivided into different levels of business market. Telecom operators can achieve the effect of avoiding the advantages and disadvantages in two ways, that is to adopt horizontal business layer integration and vertical market constraint (or vertical integration). Horizontal BusinessLayer fusion usually includes product bundle and fusion, business service integration, terminal integration and so on, business layer Fusion product can form product differentiation, and effectively hit opponents. In order to ensure stability and better coordination of action the various agreements and contractual terms between the vertical and the relevant vendors are referred to as longitudinal or longitudinal constraints. Vertical constraints can take different forms, the most common forms are non-linear pricing method, Quantity discount, resale price control quantity, exclusive transaction terms, and in some cases, if the enterprises find it difficult to use the restrictive conditions to induce the retailer to take the behavior they want, they may implement vertical integration, vertically integrated or vertical integration refers to the organization framework that integrates the business of up and down travel.　　The same effect can be achieved by combining longitudinal constraints. The vertical integration transfer pricing realizes the cost saving and the profit maximization, in which the transfer pricing refers to the artificial determination of the internal price in the economic intercourse between the affiliated parties within the Group enterprise, and carries on the commodity and the service trade according to the price.　　That is, they do not trade according to the rules of market buying and selling, but on the basis of their mutual interests or the transfer of products or other products to maximize the maintenance of income between them, in order to achieve the goal of less tax or even tax. The most stable of the triangle is the unbalanced factor. The rule of the triangle is to restrict the balance of power, the sum of both sides is greater than the third side, the difference between the two sides is less than the third side. In the fourth telecom reorganization, China's original six major telecom operators, after mergers and reorganization, formed a new mobile, new Unicom, new telecom three operators.　　From the reorganization of financial data, combined with three different technical maturity of the 3G licences, the third telecommunications restructuring of the telecommunications market in the market forces to form a pillars situation. Now, however, three are still the formal business operators, rather than the de facto full business operators. After the third telecommunication reorganization, only to meet the requirements of the whole business operation Horizontal, that is, the fixed and mobile operation license, to achieve a real full business operation, in the horizontal also need to do a full business support system to build and perfect, business innovation and integration, business model improvement and innovation and so much work, Longitudinal constraints are formed vertically through mergers and acquisitions or agreements. Pillars's situation has not been stabilized because of reorganization, there are many possible results in China's telecom market game.　　From the perspective of telecom market forces, there are still potential imbalance risks, which can be summarized in both horizontal and vertical factors. Horizontal factor mining internal potential transformation Speed fast network economy pursues the development rule of opportunity priority, the key of winner takes all is the preconceptions, the key of enterprise developing market is discovering market opportunity, grasping opportunity. Telecom competition will show new features in the coming period, that is, not big fish eat small fish, but fast fish eat slow fish. Time has become the most important factor of telecom business competition, because the cost of scale economy decreases with time. But companies with dominant market power canEnough to reduce the cost of faster, and thus faster transformation, to achieve a full business operation of the time advantage, but also the use of full business operation of the opportunity period. A full business operator, which becomes a reality more quickly, can take advantage of the full business operation to move the cost curve down further. Time advantage and cost advantage make the original dominant operator can beat competitor, consolidate advantage of market position. After the third telecommunication reorganization and the 3G licence issuance, how to base on the existing resources, existing business, existing customers to create new value, will be a major test of operator transformation, China Mobile needs to solve TD commercial issues, the Chinese unicom needs to solve the integration with the original netcom, telecom needs to improve the construction of C-Net.　　Whoever solves the problem first, who will get the initiative of the competition. Business offers a comprehensive long tail theory reveals that in a range economy, the lower the cost of sales, the greater the volume of sales, to achieve this depends on the long tail of the "aggregator", that is, the number of different types of products can be assembled to make them easier to find. Full-business operations provide an opportunity for the integration of telecommunications products (services). As operators also have fixed and mobile operating licences, the advantages of operators can be more widely integrated fixed and mobile resources (including technology patents, network resources, human resources) for business combination and integration, more easily found killer business, to 20% of the cost of 80% of the excess profits.　　The dominant operators can also more widely use customization to meet more consumer preferences, and according to different levels of consumers different pricing, to achieve maximum profit. Business selection refining the long tail curve of the whole business is actually a lot of small power law curve superposition, each small curve of the region represents a field of business or a micro-level market. In these small power-law curves the first few businesses get the majority of this consumer group's "currency vote". It can be concluded that as long as in this area, seize the first few business needs, the formation of the field of killer business, you can gain a significant competitive advantage in this area. Precision marketing strategy is based on accurate positioning, relying on the modern information technology means to establish personalized customer communication service system, to achieve the enterprise measurable low-cost expansion, the price of the product will be higher, as far as possible in the early stages of product life, the competitor developed a similar product before, as soon as possible to recover the investment, And make quite a profit.　　Then over time, the gradual lowering of the price of new products into the flexible market. Vertical factors to promote market competition more telecommunications resources telecom operators overall power balance, in fact, the resources are different, part of the long-term operation of the accumulated, such as the company's internal human resources, technology patents, external business promotion channels and content to provide channels. For example, currently China Mobile GSM base station has 307,000, China Unicom's GSM base station has 150,000, and the C net currently has only 80,000 base stations. With each base station cost 500,000 yuan ~60 million, to achieve China Mobile 98% coverage, China Telecom needs to invest in rough estimate113.5 billion yuan ~1362 billion.　　Under the same conditions, China Unicom will be involved in the construction of the base station in the cost of 78.5 billion yuan to 94.2 billion yuan. A wide range of supply chain network operators are often an intermediary platform, consumers and ASP through the platform linked together. In order to maximize profits, the more excellent ASP will generally choose those who bind more consumers in the telecommunications operations.　　Telecom operators, because of their ability to choose from a wide range of ASP, have better business, can further bind more consumers, or enhance the effect of binding consumers. Long industrial value chain in the whole business Operation era, with more binding consumers and a wide range of supply chain, the advantages of the operators down with the financial, transportation, energy and other industries, up to the media, equipment manufacturing and other industries have more extensive cooperation, so that their own industrial value chain continues to expand.　　In the long term cooperation, the competition in the telecom market has become the competition between the industrial value chain, while the operators with longer industrial value chains can endow the products with more value, attract more consumers, and achieve the goal of sharing the profit of value chain cooperation and dispersing the operating risk. The effective control constructs the equilibrium from the telecommunication industry regulation direction, exists from the asymmetric control to the symmetrical control transformation, from the price control to the market structure regulation transformation, from the pure telecommunication control to the Mixed regulation transformation. As for the market power of the telecom industry, the author puts forward the following three-point control suggestions: the key to rational utilization of the distribution and utilization of telecommunication resource resources is to distinguish the nature of different resources and to adopt different control measures, and the related telecommunication control measures of resource allocation and utilization should include: because of the unequal resources caused by the policy inclination, Will gradually be rectified through regulatory measures. The number is not portable, starting from the industrial development, is the position of the dominant operator asymmetric control.　　And from the perspective of establishing a fair industrial environment, it is suggested that by means of stages and regions, the number of the brand effect will be opened first, and the public number resource area should be set up, and then the incumbent operator can accelerate the service brand to change from the number platform to the package platform, and finally realize the portability of the number. For some operators to accumulate their own hardware resources, such as network resources, encourage the major operators through the negotiation agreement to form interconnection, interoperability and shared network. In this way, not only can solve the problem of duplication of construction or construction funds, effectively realize the solution of social resources, consumers can get cheaper telecommunications services, to avoid cost transfer, in the market power to focus on the speed of network construction caused by the transition speed difference.　　The savings of the telecom operators ' capital resources can enable the domestic telecom operators to put more resources into the innovation of telecom business content and mode, and enhance the international competitiveness. Define the rights and obligations of enterprises in terms of market share coordination and restrictions, the need for specific operators to take specific control measures, and thus the coordination of market share and restrictions related to the telecommunications regulatory measuresShould include: for different market share, the use of different asymmetric control policies, usually using the Lerner index to calculate the market share of operators, and then for different operators to use different steps of the tariff concessions (penalties) or different tax incentives (penalties) measures. To occupy different market share, so that they assume different levels of interoperability and universal service obligations. The way of interconnection is generally divided into peer-to-peer interconnection, partial equivalence interconnection, paid peer-to-peer interconnection, and partial misalignment interconnection.　　And for the inferior operators in some innovative business can adopt a pay-for-peer interconnection preferential policies, for the operators of the absolute market advantage should strictly implement all areas of Peer-to-peer interconnection. Cultivating the potential market for the cultivation and development of the market in order to enlarge the industrial plate, the long tail of the business will be long, so the relevant telecommunications regulatory measures should include: to familiarize consumers with the telecommunications business, that is, in a wide range of business operations, so that consumption useful enough information to understand what the business is, how to update the business, The quality of service, what operators of the same kind of business best.　　To foster the consumer market, the social vulnerable groups and the remote areas of consumer groups through the universal service policy to give a certain transfer payments, improve the purchasing power of telecommunications products (services), so that many businesses survive through profitability. Expand the integration of product-related industries into each other, promote the integration of three networks, promote the industrial value chain to expand to more industries. Integration business mainly involves telecommunications and radio and television network interconnection, business areas of mutual access.　　And through the integration of product innovation, industrial value chain can be extended to radio and television, finance, transportation and other industries.　　(The author of this article is Beijing posts and telecommunications) (China Telecom)