Interpretation of FDD test permit issuance

"Our regulators will announce the 4G (FDD + TDD) business of handsets to be opened in key cities after 2 hours," the 6th Smart Terminal and Mobile Internet Industry Summit held in Nanjing on June 27, On the announcement, Wang Xiaochu, chairman of China Telecom announced.

When the news was announced, the field applause thundered. Can be seen on the FDD trial network license release, the industry chain enterprises feel excited. After five o'clock in the afternoon, the Ministry of Industry and Information Technology formally approved China Telecom for TD-LTE / LTE FDD hybrid networking trials to allow telecom to be launched in 16 key cities in Chengdu, Wuhan, Shanghai, Hangzhou, Nanjing and Hefei in the Mainland and to provide corresponding 4G service.

Why did MIIT choose to release LTE hybrid networking license (hereinafter referred to as "license") at this node? How should we think about the positive impact that the license will have on the 4G market, industry chain and consumers in China?

Why release LTE hybrid networking trial license

As the leader of TD-LTE, China Mobile has already started to deploy TD-LTE as early as a few years ago and seeks to change the weakness of the 3G era. On December 4, 2013, the Ministry of Industry and Information Technology formally released the TD-LTE license to the three major operators, but did not issue the FDD license. China Mobile apparently won the advantage over time. After six months of TD-LTE development, China Mobile has over 10 million 4G users and its network covers over 200 cities.

However, with the issuance of the FDD LTE license on Telecommunication Day on May 17, the operating risks of China Unicom and China Telecom continued to rise. The operating data of the past six months has shown a red alert. For example, China Unicom added only 895,000 3G subscribers in April, creating the lowest increase in the past five years. China Telecom lost 950,000 3G subscribers in May this year and in the first half of this year it totally lost more than 4 million subscribers.

Analysis of the industry, it is precisely because of the lack of FDD licenses, so that the relatively established balance of the telecommunications market once again unbalanced, trial network "permit" of the release is imminent.

At the same time, in order to make full use of frequency resources and facilitate users to make good use of mobile communications services both at home and abroad, at this stage, China needs to co-ordinate the development of TD-LTE and LTE FDD. It is reported that according to the recommendations of the International Telecommunication Union (ITU), China, like all other countries in the world, has also planned the frequency of TDD and FDD separately to meet the development needs of China's TDD and FDD standard mobile communications systems.

The Ministry of Industry and Information Technology in fact made a detailed explanation on the move: "Firstly, we gradually led the development of the industrial chain by experimentally solving technical problems such as the interoperability of various standard networks under the hybrid networking model.Secondly, we promoted LTE chips and terminal industries Development, and effectively meet the needs of users.Furthermore, the network resource scheduling strategy under multi-network coverage is verified through experiments to explore the future commercial operation experience.Finally, through the experiment, we promote the innovation of business applications and drive the evolution of operational support systems and other supporting links. "

This shows that the Ministry of Industry and Information Technology hopes to find and verify the development trend of the future network by issuing a trial "permission". By comparing the TD-LTE and FDD-LTE hybrid networks with the TD-LTE operation mode alone, MIIT explores and accumulates future technologies and Operational experience, but also to listen to operators, handset manufacturers, chip makers and users of hybrid networking this innovative way of voice.

Promote 4G market competition more fair

There is competition for development. The promulgation of the trial network of 16 cities will undoubtedly enable the three operators to return to the same starting line in carrying out the mobile business to the extent that the market competition will be further fair. It is foreseeable that the 4G market in China will gradually return to a state of equilibrium. Moderate competition will enhance the innovation capability and vitality of the 4G industry.

First of all, at the product level, before consumers want to replace 4G mobile phones, only TD-LTE standard products can be selected. For China Unicom and China Telecom subscribers, no change of phone number is basically optional and optional. The trial network license issued, the user will not only have more options, but also more mobile phones and other terminal products to choose from.

Second, at the price level, a more open competition will also result in a substantial reduction in tariffs. In May this year, there are rumors that the Ministry of Industry and Information Technology will issue FDD licenses on 517 Telecom Day. Although this news is not true in the future, it caused a certain extent that China Mobile lowered its 4G subscription tariffs in June and China Unicom also launched Cheaper free combination package.

Finally, at the service level, fair competition will also allow consumers to choose their own good operators, prompting operators to further enhance their service levels and create differentiated and user-friendly services.

"Who's good, who is using it." At the meeting, Wang Xiaochu said that after the issuance of a hybrid network license, consumers can be given more choices, which will further promote information consumption.

Allow consumers to enjoy the best 3G + 4G experience

Have to say that the issuance of "permission" is the greatest benefit to the vast number of consumers, especially China Telecom 3G's old users. Prior to the "permission" issue, many Chinese telecom subscribers who wanted to use 4G handset service could only wait for it. Now, 3G subscribers of China Telecom in 16 cities can smoothly upgrade to 4G to enjoy more high-speed and efficient 4G networks.

One can not be ignored is that the current 4G is in its infancy, the network needs to be further improved coverage. In the absence of 4G signal, the phone will automatically fall back to the 3G network, or even 2G network. In terms of 3G network services, the unique CDMA network of China Telecom will provide consumers with better mobile Internet services and ensure a smooth Internet experience for users.

As we all know, since the beginning of its CDMA business, China Telecom has conducted intensive and intensive work on the Internet for six years. Now China Telecom's CDMA network is the "most widely covered, the best, the greenest and the most secure" network in China's 3G network.

This 3G network has formed a good user reputation, access to a wide range of recognition. At present, the number of mobile subscribers in China Telecom increased from about 20 million in 2008 to nearly 200 million so far, of which more than 100 million were 3G handset subscribers. Therefore, the launch of LTE hybrid network by China Telecom will inherit the above advantages of 3G and provide consumers with a better mobile Internet experience.

Rich 4G mobile phone package mode

In the meantime, the release of the trial "permit" will also give consumers a more affordable tariff. Tianyi 4G mobile phone package released by China Telecom for the first time received great attention in the industry.

At the Summit, when Liu Ping, general manager of China Telecom Marketing, announced the 4G package tariffs, members of the industrial chain and media reporters who took part in the photo pick up their phones to show their expectation of China Telecom. By contrast, we can see that China Telecom 4G mobile phone packages have the characteristics of "low threshold, high traffic, shareable, optional", which is the most suitable mobile phone package for the 4G era, allowing users to enjoy real benefits.

Liu Ping introduction, China Telecom to create Tianyi 4G mobile phone package, including the minimum threshold of 49 yuan 2GB cloud card, with 2GB province traffic; with China Telecom's enjoyable 3G package compared with the same price of 4G packages in the most traffic flow Up to twice the price of the same package, the price of the package can be reduced by up to 65%, the flow is not cleared, and the user can select the traffic package with validity of 3 months, 6 months and 12 months. If the user saves money, Multi-discounts more, up to 6 fold off; In addition, the flow of out-of-the-box provides three insurance, namely automatic growth, the terminal standard 4G switch and double cap.

At the same time for 4G packages, China Telecom also launched a special three to share, the first is broadband sharing, 4G packages for broadband discount or free; the second is home sharing, up to 5 family members can share voice, traffic; the third A business sharing, a 999 business package, which contains 9999 minutes of voice and 9999 trillion of traffic, for 9 people to share. This sharing also fully reflects the China Telecom Tianyi 4G "share a better life" brand concept.

Moreover, China Telecom 4G Package is the first in China to launch a personal customized package. Through the interval price of traffic, voice and SMS, users can customize their own exclusive packages according to their own usage habits so that each user becomes the designer of packages. And traffic, voice, text messages can also be converted to each other, such as when the flow is running out, you can convert to voice.

China Telecom also introduced a free-charge application charging by content - like 4G, love to listen to 4G and love to play 4G, which also subverts the previous operators only by way of traffic accounting, allowing users to worry-free look at the video, Listen to music and play games.

Guide the terminal industry chain to prosperity

In addition FDD trial network licensing will also give consumers more abundant cell phones and other 4G terminals. A few days ago in Nanjing Tianyi mobile phone fair, to Samsung, Coolpad, Huawei, ZTE and other handset manufacturers, and led by the US Qualcomm chip makers have shown a positive attitude, have introduced the telecommunications version of 4G Many products support quad mode (CDMA / GSM / TD-LTE / LTE FDD).

It is understood that at this fair, Cool show 5951L, K1 Telecom Edition (5952), 5,892,000 yuan 4G mobile phones and other new products, and released a new generation of thousands of 4G dual standby king "double stick" T1 phone. Huawei has just listed the flagship model P7, thousands of new 4G C8817L 4G and MIFI LTE system and other end products. In addition, a number of telecom 4G products including ZTE Qingyang 2 4G Edition and Amagatarai Touch 3e are all on display.

From the low price of thousands of machines to high-end flagship machine, CDMA terminal industry chain has made enough preparations, longing for China Telecom to obtain FDD license. The issuance of the "permission" opened the door to the initial release of the strength of the industrial chain of business savings, bringing users more formats, more variety of 4G mobile phone options, so 4G terminal market more prosperous and further healthy development.

"We have done a lot of preparations, a lot of 4G products are already in the channel." A top executive of a terminal company expressed his welcome to the Ministry of Industry and Information Technology's hybrid networking license. "We have already Investing in tremendous resources for product development and stocking of telecom version 4G will try to provide more products of different levels at high, medium and low levels to meet different consumer needs. "

In addition to the terminal enterprise, the issuance of "license" will also bring new opportunities to more enterprises, including design companies, application developers, chip manufacturers at home and abroad, as well as nearly 10,000 domestic distributors, distributors and retailers Home chain enterprises, 4G industry in the second half of 2014 will enter a vibrant era.

It can be said that the release of the LTE hybrid network trial license not only promotes fair and open competition in the entire market but also implies to consumers that it will open a new good life. As Wang Xiaochu has done in this year's mobile Internet Summit Forum said, "This spring is coming late, but the late spring will still bloom."