Moving Zhengmao in the Zhang debate: operator is not a monopoly

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[Guide] Zhang to the competition between operators to evaluate: your few called melee.

Tencent Science and Technology (crown) September 12 News, is underway in the 2013 Summer Davos forum, from the scholar Camp economist Zhang with operator representatives, China Mobile (micro-BO) executive vice President Zhengmao on the operator monopoly problem occurred a typical debate.

In the face of China Mobile's monopoly, Zhengmao's view is that, from the data, China Mobile occupies two-thirds of the entire market, should be considered a monopoly, but in fact, the competition among the three operators is very fierce. "There is a lot of competition in the school market every autumn when freshmen enter school, which is rare in other markets around the world." What is that? ”

Zhang a short comment, "You are not competing, called melee." ”

Weiying that the monopoly is government power to control market access formation, and the market has a few enterprises. If the telecoms market allows anyone to enter, even the only one in the market is competition rather than monopoly.

Seemingly intense verbal confrontation, the actual careful analysis of the logic, you will find that the warring parties are actually not in the same logical topic.

Zhang discusses that the entire telecommunications market due to state control access, so is a kind of industrial administrative monopoly, in this judgment, three operators are not escape, are vested in the monopoly industry;

and Lee to self proof, more about China Mobile occupies two-thirds of the market is not a monopoly, as for the industry and administrative issues, it is not his concern, nor he can solve.

It's like two people. You punched me in the leg. The moves are very violent, but in fact, standing on the two parallel lines, the audience because of the dislocation relationship, watching the lively, in fact, did not hit together.

Let's simply comb through this topic:

Telecom operator is not a monopoly

Although Professor Zhang replaced the administrative monopoly directly into a monopoly, and therefore it, internet companies can be fully competitive but still have the opportunity to occupy a huge market and the exclusion of other competitors in the ranks of the enterprises in the monopoly, is unfair, but to be realistic, the telecommunications operators have developed to this day, Is indeed a vested interest in administrative monopolies and resource monopolies; At this point, operators need not argue themselves and do not have to do too much modification, because this is a national topic, not a company problem.

The relationship between monopoly and market share

This is the problem that Zhengmao wants to explain clearly, although it is limited by time or other conditions, and no explanation is too clear. Ballmer once had a classic argument: "We are not a monopoly, we just occupy the market share." In fact, occupy a large or even large market share, and can not be directly defined as a monopoly, and once the enterprise through its occupy a larger market share, to forcibly promote their own products or services, in order to maintain their market position, this is to constitute a monopoly.

To be straightforward, it is not your fault that you are welcomed by the market, but it is your fault that you use the welcome of the market to hinder other competitors. In this regard, Microsoft's Windows bound IE is a classic case.

Why the operator market is competitive

Since the operator market belongs to the field of state-controlled access, why is the competition fierce to Zhengmao? Is he lying?

He is not lying, telecom operators fierce competition or even bad, mutual looting of the market is often the case. This is also a typical manifestation of oligopoly.

When a small number of enterprises occupy the entire market, it is easy to form an oligopoly, because the market share in a few enterprises, the introduction of a policy, need to see the reaction of competitors to determine the effect. For example, suppose that one day mobile phone calls to the low, but this does not immediately bring good results, if the next day the other two operators to the price of synchronous lower or even lower, its market will be reduced. As a result of this strong relationship between the two, leading to competition in the Oligopoly field will be more intense, the sword hand-to-hand combat.

To sum up:

The telecom market does have a monopoly of genes and the essence of monopoly, three operators are vested interests. But at the same time we have to see that such a monopoly is caused by policy or administration, Professor Zhang is in fact the wrong opponent, he should go and the Executive unit theory, how to further open up the market.