China Telecom to the mobile Internet access to digital reading market clearance Plate

Perhaps you can learn the way Tencent this penguin dominates the Internet, this is the current operators difficult to expand the value-added applications, the development of the most successful model. Despite the orderly growth of the 3G user base, this natural growth does not lead to more significant revenue growth for operators. Adjusting the strategy to change the mobile Internet may be a better choice.

Variable Mobile Internet

The strategic cooperation memo signed with the National Press and publication administration last week is no doubt a further expansion of China Telecom to the Internet, especially the mobile Internet value-added application market.

At the meeting, the two sides to the cooperation of the tone is to play their respective advantages, the traditional publishing and information network technology fully integrated to achieve cross-sectoral, cross-industry comprehensive cooperation, and jointly promote the development of digital publishing industry in China. But the discerning eye can see, China Telecom has obtained to the digital reading market March "the clearance dish".

The signing actually clears the copyright barrier for China Telecom's sky-wing reading. Under the agreement of the ED, more publications and no copyright disputes are undoubtedly the most critical success factors in the early stages of business. At the beginning of this year, China Telecom has launched the "sky-wing digital reading platform" base in Zhejiang.

This is not the beginning, nor is it the end. Moving closer to the mobile Internet is not a simple slogan. Since China Telecom has obtained the handset operation licence, has started this kind of attempt, specially after the 3G licensing, has played "the Internet handset" the concept. The internet has always been China Telecom in the three major operators are different from other competitors, one of the most powerful advantages.

It is understood that its chinanet is China's widest bandwidth, the widest coverage, the most stable network performance, the most abundant information resources, network functions and the most advanced Internet, the international Internet total bandwidth of 373G, is currently the world's largest Chinese information network.

But despite having such a strong Internet infrastructure, and increasingly active Internet applications, operators are becoming a conduit for information services. This is the role that operators have been trying to change in recent years. The subsequent search for blue ocean and strategic transformation are mostly based on such a change of target, operators want to provide more information services to change the voice business caused by the decline in revenue.

3G gives operators such an opportunity. After the launch of the 3G network services, China Telecom has increased its investment in value-added applications, including the establishment of value-added business operations center, the establishment of the base business center in the country, in-depth development of hundred information services and other measures.

The digital music Operation Center settled in Guangzhou is another tactic of China Telecom's mobile internet market. As a successor of the domestic mobile communication market, the network music market is the place that has to contend. Shortly after the launch of the Tianyi brand, its wing "love Music" business went online, and constantly looking for content partners. As of July 2010, China Telecom digital Music Operations Center has at least 400,000 music products.

3G Hidden Dangers

3G brings more opportunities to operators as well as more competition, and there are too many crises lurking in the blue sea. Telecom operators of the market in the whole business era of change is subversive, the content of the competition and carriers are unprecedented, in the face of such an environment, operators naturally dare not snub.

According to China Telecom released June operating data, June new CDMA users 3.02 million households, compared with May, there is no greater change, can only say that is a smooth through June. By the end of June, China Telecom Mobile phone user size of 74.52 million. 3G users, according to market analysts, estimated about 7.18 million.

According to the Ministry of Industry recently released data show that up to the end of June, the entire sector in the net 3G users reached 25.2 million, of which TD users up to 10.46 million households, and according to China Unicom published data, 3G users reached 7.56 million, from this to reach China Telecom 3G users 7.18 million. So, China Telecom's 3 operators in the number of 3G users do not take advantage. But it is gratifying that this part of the 3G users relatively little water.

Although China Mobile 3G users have claimed tens of millions, but a large number of the 3G banner of the mobile landline, which actually greatly weaken this part of the user's ability to dig. This is actually the operator's current embarrassment, how to develop 3G services to expand 3G applications has been the operator 3G success or failure of a key.

Credit Suisse, which maintains Hong Kong-listed China Telecom's "neutral" rating, gives the company its target price of HK $3.95. At the same time, to China Mobile's "outperform" rating, the target share price rose from HK $107 to HK $116. China Unicom also gave the "outperform" rating, giving the company a target share of HK $13.25. The capital market to the three major operators overall bullish, but more sing excellent Chinese mobile and China Unicom, there is also a hidden market for China Telecom's concern, because in the number of users and terminals have no advantage, basically adopted a conservative attitude.

Both internal and external storage

It is clear that the growth of 3G users has come to a bottleneck, and in the absence of more new applications, user activity is difficult to improve. In order to break the cocoon in such a situation, China Telecom's exerting force should at least take into account the internal and external two aspects.

The first is to practise hard skills. This is self-evident that, without core competitiveness, there will be no loyal users. At this point, China Telecom has started, including mobile phone reading, network music, video business quickly spread out, which is to seize the opportunity to pave the mobile Internet. Such a strategic Highland layout shows China Telecom's potential for mobile internet. As a result, it will certainly increase its commitment to such operations in the coming period. At the same time, including the strengthening of the base business of the whole network operation, increase the terminal business embedded, accelerate the expansion of customer service channels, as well as increase the number of star mobile phone terminal varieties. Recently, there is news that China Telecom will introduce the CDMA version of the iphone, although this rumor is suspected, but the introduction of palm is a certainty, these are nothing more than to strengthen its terminal competitiveness, to break China Unicom in the W means alone lead the situation.

The second is to strengthen cooperation and win. All the fire high, no partner is difficult to shake opponents. At present, China Telecom is in a weak position in the market competition, and it is the key to find a partner for the advantage of Chinese mobile in the market, especially the mobile business market. Especially in mobile Internet applications, relying entirely on base development, the effect is too slow, more unity in other areas of the market or business leader is undoubtedly a good choice.

In this context, China Telecom can quickly adjust the strategy and development of the layout, terminal, the introduction of more star terminals to join, application, popularization of more innovative services, then the popularity of Internet mobile phones is not impossible to achieve the task.