China Telecom's transformation is continuing, and looking back over the past ten years

In the book of changes, there is a classic saying, poor is changed, change is pass, general rule long. Marx said that the only constant in the world is change. At the end of the year 2014 Sino, suddenly want to from China's telecommunications industry in the 10-year course to explore the unknown 2015, only to find that the past ten years the most profound brand is a transformation. Transformation, although not China's telecommunications industry took the lead, but the Chinese telecom industry has been interpreted incisively and vividly. From China Telecom sleepy thinking to carry up the banner, to transition into the industry-wide theme, ten years in the wave of cloud lumpy information tide in countless memorable moments, and the process itself is an epic.

After the split between North and south

2001, after a long period of fierce debate and repeated game, China Telecom experienced a "scalpel" style of the north-south split, the November, the State Council approved the "reform of the telecommunications system", the fixed telecommunications enterprises to reorganize the integration, decided to form a new China Telecom group and the Chinese Network Communications Group, since China Telecom and the Chinese Netcom "zoned Jiang and Governance", the end of the industry leader of the history of the leading. After the reorganization, China Telecom has formed the market pattern of 6 basic telecom enterprises and more than 4,000 value-added telecom and wireless paging enterprises, such as China Telecom, Netcom, Chinese mobile, Unicom, China Satellite and Tietong Corporation. However, the global mobile communications industry has risen rapidly and began to go beyond fixed communications, therefore, the Chinese telecommunications industry in the fixed network to expand competition, weaken the whole network operation of the reform, the industry's doubts have been constantly, but the north-south split is indeed the initial starting point for China's telecommunications industry transformation.

After the north-south split, China Telecom's development direction began to grope hard. Because of price competition, the mobile voice and fixed network voice charges are getting closer, China Telecom began to lose market dominance. China Telecom, which had hoped that regulators would be able to give it full business operations, was calling for a 3G licence. In order to gain a positive competition with mobile operators chips, and opened up the PHS front. All of this, while creating significant market pressures for rivals, is a lack of strategic vision, like headless flies, that lasts until the end of 2004.

In November 2004, Wang formally as general manager of China Telecom Group, one months later in the group's working Conference on the "from the traditional basic network operators to modern integrated information service provider Transformation" strategy, which is also the beginning of China's telecommunications industry-wide transformation. Since 2005, China Telecom has developed new business such as the number of knowledgeable, business pilotage and so on, so that users really enjoy a more convenient comprehensive information services. At the same time, business innovation has driven the internal technology, network and management innovation, enhance the enterprise value. But on the whole, the transition that has begun is still confronted with the real challenge of involuntary reversal, which is the absence of a mobile operating licence.

The revival of fixed networks

China Telecom, the oldest in history, the transformation is tantamount to a revolution, the resistance and challenges are self-evident, but this is the fixed network operators must actively experience the pain. In the August 2005, the phased goal of China Telecom's strategic transformation has been explicitly written in the guidance opinions on the implementation of strategic transformation of enterprises. In this document, China Telecom anticipates that it will take about 8-10 years for the modern integrated information service provider to be implemented in three phases. The recent (2-3-year) critical period, the realization of corporate income, investment, cost and human resources, structural adjustment, medium and long term (5-6 years) to achieve the basic strategic transformation, to achieve enterprise income growth rate and industry development speed synchronization, the main value indicators reached international comparable telecom company average; forward (8-10 years) Become a modern integrated information service provider. Now, these goals have basically been achieved, and at the time, such a plan requires strategic vision and courage.

At that time, the Chinese telecom and China Netcom are still strictly restricted in the mobile communications market, fixed network in the decline at the same time into the "no self-help" embarrassing situation. The biggest resistance of the transformation comes from the regulation of the policy protection barrier to the mobile communication market, which causes fixed network operators to see the voice service being replaced by mobile communication. Although PHS to mobile communications formed a shock, and successfully promote the rapid decline in mobile communication tariffs, but PHS is not the fixed network operators to help the straw.

From 2005 to 2008, China Telecom and Netcom suffered from the rapid expansion of market imbalances, the Chinese mobile company alone until the monopoly of the market environment, the transition in this situation, although difficult, but has begun to form a market bright spot, The comprehensive information service, which is dominated by all numbers and business pilots, becomes the new profit point of China Telecom. 2005, China Telecom and Shanghai Cooperation in Shanghai launched IPTV business, access to the mainland's first IPTV license, to BESTV as the brand, and then extended to the major coastal provinces and cities in China, as a breakthrough in the integration of three networks, but also a solid network to explore the integration of information services to provide a successful attempt. This period, China Telecom's market and social image of a comprehensive reversal, a positive and innovative modern integrated information service provider's brand quietly set up, people suddenly found that has become the "most familiar with the stranger," the traditional monopoly of telecommunications state-owned enterprises, suddenly full of vitality.

At the same time, the global mergers and acquisitions boom, in 2006, Ericsson and Marconi, Alcatel and Lucent, Nokia and Siemens and other large-scale mergers and acquisitions triggered the IT industry chain reaction, the operation of fixed, mobile network integration has become the trend, the United States and Europe's operating industry mergers and acquisitions to create a fusion of the big Integration into the industry-wide transformation of the engine and direction.

Transformation Lead Barges

The restructuring of telecommunications, which has been brewing for 4 years, has become a reality, and the transformation of China's telecommunications industry has once in 2008. In May 1, the three ministries jointly launched the "Liuhe three" telecommunications restructuring programme, also known as the fourth telecommunications restructuring, the reorganization of the issuance of three types of 3G licences paved the way, then the state officially issued 3 3G licences. At this point, the single fixed-line operation of the end of the era, the whole business integrated operator competition era opened. China Telecom has spent 110 billion RMB to acquire the CDMA network operated by China Unicom, while ending the embarrassing situation of Chinese Unicom's long-term "hands and Bo".

China's telecom industry has accelerated its transformation and development since then, China's 3G stride forward. Globally, the financial turmoil triggered by the US subprime mortgage crisis swept the world, and although financial institutions such as Lehman Brothers, Bear Stearns and Merrill Lynch were severely punished by the market, the crisis was still spreading to many industries, but China's telecoms industry has become a rare development bright spot, the 3G process has obviously speeded up and the mobile internet The rapid growth of China Mobile internet has also prompted the operation industry to adapt to the integration of the Internet transformation ideas gradually clear. China Telecom, in particular, like a runaway steed as a strong rise, will be a completely not optimistic about the CDMA2000 network into China Mobile Internet guidance Force, in the 3G era, with China Unicom nearly pulled down the position of the market hegemony, but also prompted China Mobile for the integration of network transformation strategy rapid prototyping.

Industry-oriented transformation of mobile Internet innovation into the fast lane, the transformation of the telecommunications industry is also closer to the origin of the transformation requirements. Transformation of the fundamental, is to be the value of the company's resources, in order to enhance the value of the goal, focus on the capital system, investment system, human resources system, service supporting system optimization, further release of productivity, enhance value. During this period, China Telecom and China Mobile all vigorously developed the business base model, and began to try the internal innovation system and mechanism to connect with the Internet. The transformation and innovation of operators have led to the synchronous burst of productivity in the industrial chain.

The operator's right to speak in the industry chain seems to be gradually weakened by the terminals, equipment, software, internet and other manufacturers, but its dominant position has not changed. At present, almost all of the information consumption hotspot, can not bypass operators, and in most cases must have the participation of operators to achieve breakthroughs. Therefore, the transformation of the operation industry directly determines the development trend of IT industry, in the end of 2014, China Telecom Internet transformation, which is also its ten-year strategic transformation of the in-depth development.

2014 is the year of 4G development in China. By November, the number of 4G users in China had exceeded 75 million, and a year had overtaken South Korea and Japan as the world's second-largest 4G, the world's largest network of 4G. The development speed of the world's attention is the result of the transformation of China's telecom industry in the past decade.

The transformation of the telecommunications industry has continued, the success or failure of the people to comment, but the transformation of the country, industry, the well-being of the people, to withstand the test. China needs telecoms for the next ten years of transition.