Mobile Virtual operator Unlicensed Insider: fear of price war

In the recent Ministry of Industry issued the first batch of virtual operator licences, in addition to several retail channel giants absent, another focus is China Mobile's virtual operator partners have not been licensed, and people familiar with the matter, mainly from China Mobile to virtual operator reform misgivings, worried about the vicious price war, The results of the approval of the virtual carrier partners were too late and missed the first batch of approval time for the ministry. The embarrassment of China's move was preceded by December 26, before the arrival of the New Year, Ministry of Industry issued a virtual operator license plate, the first batch of enterprises to obtain licences including audio and video communications, Zhejiang repeatedly science and technology, music language, China Xiang Lian Xin, Jing-dong, north latitude communication, million net Zhi Cheng, di Tong, sharing Online network technology, telephone world digital chain Group, Bus Online Holdings Limited. However, the 11 companies are working with China Telecom or Unicom, including China Telecom's 9, but there is no China Mobile partners. For why the first pilots did not have China Mobile's partners, the Ministry of Industry in the written answer to the relevant questions also clearly pointed out that "mobile communications resale business since the launch of the pilot, has been a wide range of social concerns, private enterprises to respond positively, the basic enterprise attaches great importance to the intensive business between the rounds of exchanges and negotiations." Due to the different work schedules, China Telecom and Unicom, respectively, at the end of October and early November with 16, 14 private enterprises to reach the intention of cooperation and signed a commercial contract. China Mobile has also identified partners to enter the contract signing phase. At present, my department has not received the cooperation with China Mobile private enterprises to put forward a pilot application. It is true, people familiar with the matter said. The Ministry of Public Works has already worked out plans to release the pilot licences of virtual operators before the end of this year, urging the three operators to speed up the process, but not material China Mobile to the virtual operators to implement a partner bidding system, to determine the list of partners too late, the ministry simply no matter how China Mobile, Simply according to China Unicom and the Chinese telecom's recruitment results, the issuance of the first batch of virtual operator licences, in fact, caused the embarrassment of China Mobile, the attitude of the Chinese mobile to the table. China Unicom Telecom Change Strategy Open recruitment of the Ministry of Industry is announced earlier this year, the mobile communications resale business pilot work, from the whole process can be seen the difficulties of the introduction of virtual operators system. According to the Ministry of Industry and Information Technology mobile communications business pilot work requirements, the three major operators are almost May release of the mobile Communications business pilot cooperation related issues bulletin, that is, the recruitment of virtual operator partners announcements. However, the results of the first partnership has also been in October, that is, China Unicom, followed by the Chinese telecom in late October, and the Ministry of Work has repeatedly urged China Mobile to speed up the process. On October 24, the Ministry of Industry's third-quarter press conference, at that time, Shang, deputy director of the Ministry of Communications and Development, said, "mobile resale problem is really very concerned about, this is also to promote private capital into the telecommunications industry is very important move." Everything seems to be going well at the moment. We've been learning a lot lately.The relevant situation, the progress of several enterprises are not the same. This is actually reminding China Mobile. It is reported that the first three operators did not have a interest in this, all feel that private enterprises to eat up the market, to a piece. For example, China Mobile's virtual operator Interface Department for the procurement department, the Chinese Telecom Interface Department for the public customer department, the interface Department of Unicom was initially the Ministry of Supervision, and later changed to the marketing department. Therefore, some people described China Mobile as the virtual operator as party B, Unicom began to look at the virtual operator as a monitoring object, and later instead as a channel partner, China Telecom is the interface department in the public client department, the beginning of the virtual operator directly as a channel. "But then the attitude of China Unicom and Chinese telecom changed, think that these two operators understand the" arms can not twist the thigh ", and their market share is smaller, the loss of smaller, so simply put the virtual operator partners open the opening, as long as the hardware conditions, who originally to join all can, The result is that the Ministry of Industry originally stipulated the pilot enterprise more than 2, but China Telecom recruited 16 partners, the Chinese Unicom recruited 14. Fear that the virtual operators to provoke a vicious price war on the virtual operator problem is the most uncomfortable is China Mobile. It has been disclosed earlier, because China Mobile occupies most of the market share of mobile communications, it does not need virtual operators to help its channel, that is, no matter how the development of virtual operators, in fact, is to pry its share. This is not the same as China Unicom, Chinese Telecom, if the virtual operators really developed, China Mobile is equivalent to its income as a part of the others. And virtual operators often play price war or target group customers, the former is to pull down China Mobile's Apru value, the latter is the virtual operators in China Mobile customers. Obviously, although China Mobile in the formal launch of mobile communications resale business pilot work, said, "sincerely welcome the Ministry of Industry and Information Technology" mobile communications business pilot program requirements, and has the intention to cooperate with us to carry out mobile communications business pilot enterprises to negotiate. Division I will come to discuss the enterprise to provide "mobile communications business cooperation demand book". But in fact, China Mobile knows what virtual operators mean to it. In particular, the competition of virtual operators may mainly take the price means, will force China Mobile also to reduce prices, and thus erode China Mobile's profit margin. For example, the Beijing-East has obtained the virtual operator license plate, this appliance business enterprise is always take the low price as the gimmick, although Jingdong and China Mobile will be divided into the future, but after all, still want to divide a lot of money, and to China Mobile market formation price impact. In particular, the current OTT business has been to China Mobile SMS, MMS formation of a huge impact, coupled with the virtual operator system, the day of the three operators will be more sad, especially China Mobile. Industry forecasts, the three operators will still take measures to curb the virtual operator's price war impulse, because we all understand that once the price war is too brutal, the market will be on the brink of collapse.