Broadband siege, fake people's capital hard to break the real monopoly

A few days ago, the Ministry of Industry official issued a "circular on the opening of broadband access to private capital", another name long notice, imposing like rainbow to expel 3 encouragement, respectively is to encourage private enterprises to participate in broadband access network facilities Construction and operation, encourage private enterprises and broadband access network investment, and cooperation with basic telecommunications enterprises to encourage private enterprises to provide broadband resale services. But the lengthy title + lengthy encouragement only gives a sense of ostentation, but in fact it is a simple one: to encourage private enterprises to act as operators of temporary jobs, the number of words has not been announced the official title long.

Undeniably, the telecommunications industry is China's most innovative state-owned sector, 20 years of continuous adjustment of organizational structure and business model, relatively large-scale is unicom, the separation of mobile, there are 2008 years of business restructuring of Chinese operators, the Chinese telecom industry continued to bathe in the spring of reform, consumers are really drunk. Reform action wave after wave, such as the release of telecommunications fees and approvals, the establishment of the tower company, a large number of licensing virtual operators and so on. Now before the trans-year, the introduction of the public-funded broadband access market, it is to 2014, this theoretical reform of the Spring festival in a complete period.

But the sad is that the reform in the spring, the consumer is really drunk, telecom operators are pretending to be drunk, they passed the spring after the bath more spirit. On the surface, the operators continue to cooperate with the reform policy, the continuous introduction of relevant measures, but from the effect of it is to tease monkeys, many measures but none can break the monopoly.

It means that the people's capital is limited to outside the city

In addition to offering three encouragement, the circular also expressly stipulates that basic telecommunications enterprises shall not enter into agreements with exclusive terms with private enterprises and require us to cooperate well and make money together. The first batch of pilot cities including Taiyuan, Shenyang, Harbin, Shanghai, Nanjing, etc. In the first place, we do not need too much to read the pilot City distribution, single "Access to the market" four words is enough to decide, the pilot will not break the monopoly of the broadband market, such a reform summed up the four words: meaning.

From some supplementary information can be clearly known that private capital is only allowed to participate in the construction of network access layer, and can not participate in the construction of the basic core network. Although the "notice" allows private capital to use their own brands to promote, but also has an independent pricing power, but they are at best as a basic operator of the resale role, also known as agents. In this mode of operation, private capital can not obtain the core of the right to speak, agents of the main price is still determined by the basic operator pricing, and in order to profit or survive, they have to some extent to increase the price of sales, that is to say, consumers expect the full competition will lead to price reduction. Bluntly, this model is a copy of the virtual operator's play, and the number 170th, such a reform more coarse, more unworthy:

Virtual operators have to promote their own business interests can be shown, for example, Ali can be promoted through the 170th segment Taobao, some bus app also homeopathy, but two-tier broadband business in addition to competition for consumer resources, to gain a meager profit margin, cultivate a theoretical brand, to find a viable commercial profit point, cycle longer, The direction of development is even more uncertain. Perhaps, the approval of the people to enter the broadband access market, even 170-style false prosperity can not see.

Three great encouragement, meaning geometry?

Although this "notice" is difficult to change the Chinese broadband market oligopoly, but it is not completely meaningless, and now China Telecom market is in a relatively stable, mature period, and social atmosphere echoes. In this atmosphere, any market is not worth the risk of a stormy revolution, we need may be only a little bit of improvement, and as long as the stick will be certain to receive goods, and this "notice" issued can not expect the significance of its reform, at best, is a proposal to improve.

In fact, to allow people to enter the broadband market, this "notice" is not the first time, as early as in 2001, the Ministry of Information Industry issued a similar policy, which gave birth to the Great Wall Broadband, April network, founder Broadband and other private broadband operators, but more than 10 years later, Consumers to mention broadband business is still the first impression of China Telecom and Unicom, they occupy the Chinese broadband market 80% of the market share, these two operators failed to get out of the quagmire of price war, or even deep in the "false broadband" Abyss can not extricate themselves, perhaps, This is why the Ministry of Industry is not willing to give the basic core areas to private enterprises, one of the important reasons, rather than the three operators reluctant to monopoly, rather than the private broadband business to wash themselves first.

The "notice" issued, the most immediate significance is to increase the competition subject, to the messy private broadband market input some fresh blood, more and more enterprises will bring more broadband technology, more business cooperation model, there are more products and services. While the underlying telecoms market is still in the hands of state-owned operators, if a handful of giants can rely on the false-false advantage to devise industry rules that govern the "last mile" of broadband access, perhaps we can really wait for the fourth operator to compete with state-owned operators. Of course, this dream is obviously a little big, need policy, technology, conditions perfect integration, but fortunately this dream represents the development of China's telecommunications industry direction:

First, broadband providers are going to accept the role of state-owned operators, just as Foxconn accepts Apple's role as a iPhone6, while they have only a 2% profit margin at the same time as they get high profits, but Foxconn still keeps its meager profits. Private agents, too, must understand the existing pattern, since it is not the state-owned type of rich second generation will be serious struggle to be possible reverse attack. With such a mentality, private broadband operators will give up the pursuit of profiteering, so as not to fall into the mire of "false bandwidth". In fact, the new private broadband business first thing to do is to the existing industry of the chaos like atonement, commonly known as "wash white." This process is relatively simple way is backed by a large Internet platform, with its brand influence to eliminate the concerns of consumers, such as Ali, Tencent, Baidu investment in any market will be attracted by the industry a large number of follow-up, the broadband market is naturally the same. In addition, private broadband providers to fundamentally find the business model of the breach, since the profit margin is not high, it is necessary to expand the user size, as the core competitiveness of Foxconn is large, fast, coupled with internal cost control measures to earn huge sums of money, this development is worthy of private broadband business reference. At the same time, they can properly tap the business potential of access to the market, equipment, materials, services can be in-depth excavation, but also can combine content suppliers to provide differentiated services, in short, in a small profit environment, private broadband operators only walk a day of the difference of the road can survive.

Finally, because of the special environment of China's telecom industry, the broadband market is the same as the siege: the people outside want to go in, inside the people will not come out. Based on this background, "notice" to give play to the significance of improvement, private broadband business to survive also rely on a supportive policy and sober supervision system, the relevant departments should strengthen legislation to help the telecommunications industry to clarify the direction of development, as well as the cultivation and protection of potential, gifted private broadband operators. This process is very long, each time the "notice" is only a small improvement, but if it can be as "life-saving straw" as grasping, will surely wait until towering trees. (New discoveries of science and technology Constantine/Wen)