Subsidy policies to stimulate the nerves upstream and downstream of the industrial chain

Li Na

The adjustment of subsidy policies has once again stimulated the nerves in the upstream and downstream industries.

Recently there is news that China Mobile made it clear that in the second half will gradually reduce the subsidies for 3G handset models, instead of subsidizing all 4G handset models. And 3G mobile phones only enjoy channel honorarium, that is, channel commission will be based on user traffic consumption, according to the AUPR value (average user spending) to settle remuneration, rather than selling a bare metal before there is remuneration.

Some telecom operators on the "First Financial Daily" frankly speaking, the decline in subsidies for the operators is the general trend, but behind the "camp increase" near the declaration and the three operators in the 4G window to compete in a certain sense, speed up this A speed of change.

According to report, at the end of June, a number of mobile provinces have issued a document, the end of July required the benchmark price of 498 yuan and above the 3G terminal clearinghouse.

TDS terminal "weaning"

In China Mobile's terminal adjustment strategy, the biggest cause of fluctuations in the industry chain is still where the subsidy policy.

Prior to the news that the three major domestic carriers are gradually adjusting the subsidy strategy, in 2014 the amount of mobile phone subsidies will be down 10 billion yuan, of which 5 billion mobile, Unicom, each 2.5 billion telecom. In the recent mobile terminal policy adjustment outflow, in addition to the removal of the mobile 3G terminal (TDS) subsidies, the scope of the relevant mobile phone subsidies are also reduced to only for high-end phones, but in the future this part will be gradually canceled.

The reporter got a notice of liquidation of a company in China Mobile in the notice shows that the terminal companies need before the end of July, the benchmark price of 498 yuan and above 3G terminal clearing house. At the same time, before the end of August, the benchmark price of 398 yuan more than 3G terminal clean-up. And from August 1 onwards, the sale of benchmark price of 498 yuan and above 3G terminals only after the contract contract issuance. September 1, the sale of more than 398 yuan benchmark price of 3G terminals only after the issuance of contract commissions.

The provincial company said that at present there is no stop 3G terminal storage, 4G terminal will increase the proportion of high-profile terminals, encourage more than 4 inches 199 ~ 299 yuan low-cost 3G smart terminal sales, and 4G terminals form a high school low with the realization of The complete coverage of the terminal market and effective occupation.

Insiders admitted to reporters, as early as the end of June, China Mobile each provincial company on the 3G terminal clearance came to an end. In a number of provinces, the mobile branch issued a circular notice, explicitly handling 3G inventory will be the first priority, to avoid 3G terminal 3G terminal inventory backlog price risk.

TCL Communications Technology Holdings Co., Ltd. insiders told reporters that in the first half we all had more cautious, can not see the 4G trend, but in the second half 4G mobile phone will gradually increase the amount of new products.

In the 4G LTE licensing, Tang Jianfeng, deputy general manager of China Mobile Terminal Company, said that China Mobile's mission in 2014 is to speed up the popularization of LTE terminals and promote the sale of at least 100 4G mobile phones. China Mobile Subsidy will tilt to 4G handsets in 2014. In the same period, Li Yue, president of China Mobile, said that China Mobile will timely reduce 4G traffic tariffs and gradually reduce the terminal subsidies according to the development of 4G terminal services.

However, the current 5 months of data, the actual growth of mobile 4G users is not ideal. According to data released by China Mobile, as of the end of May this year, China Mobile 4G users totaled 8,109,000, from the overall goal of 50 million users is still a gap.

Therefore, we can also see from this move adjustment that the "No-subsidy Three-mode Mobile 4G Mobile Phone Policy" has been canceled, but also stressed that the cost subsidy can not be used and the subsidy rate does not exceed 30%.

Carrier pressure change

In fact, the gradual removal of subsidies behind China Mobile is also under the active face of the existing environment.

At present, operators have been approaching the first round of "camp change" reporting period. China Mobile once said in its announcement that the increase of "business tax increase" has a huge impact on the company's profit. Assuming that "business tax reform" was implemented in early 2013, the operating expenses dropped by 2.5% -3.5% while the operating income decreased by 5.5% ~ 6.5%, last year, China Mobile's share of profits dropped by 10.9% to 18%.

Wang Jun, secretary-general of the Zhonghan (China) Tax Cooperation Organization, told reporters that operators will therefore expedite the pace of business transformation in the second half of this year. On the one hand, due to the low tax rate of value-added telecommunications services, operators will be encouraged to further accelerate the transition from traditional services to data services. On the other hand, operators may also adjust their sales methods to lower their tax rates and change their business impact.

Specifically, the three major carriers are changing the way they use a lot of promotional tools in the competition, such as charging mobile phones and credit for points. Tax system people think that in the business tax system, the telecommunications industry to carry out stored calls to send mobile phone business, mobile phones do not pay VAT, also exempt from sales tax. If the telecommunications industry to pay value-added tax, mobile phones as sales processing, according to the market price to pay value-added tax.

This is why China Mobile in the new adjustment, emphasizing "to reduce and gradually cancel to send mobile phones, mobile phones and get users to get calls subsidies", the terminal sales model to bare metal sales, contract sales, one of the reasons for the change.

In addition, for operators, reducing handset subsidies will be the future trend. Prior to terminal subsidies as the main means to promote terminal sales contributed, but the sale of mobile phones by way of terminal subsidies have left many problems.

Operators told reporters frankly that high subsidies allow users to over-subsidy subsidies are not conducive to the promotion of open market sales and terminal operators social channel process. Moreover, terminal subsidies cause many chaotic agent channels. Under the pressure of interest-driven and performance pressure, many channel agents cheat subsidies by means of "disassembling machines" and "keeping numbers", which has caused huge losses to operators.

At present, in addition to China Mobile, the other two operators are also interested in reducing handset subsidies. It is reported that China Unicom's mobile phone subsidy of 7.8 billion yuan in 2013, subsidies in 2014 will drop to 6 billion yuan. Since the second half of 2013, China Telecom has started to adjust its terminal strategy to reduce "handset subsidy" and increase "bill subsidy" to reduce the amount of terminal subsidy.

In the face of the adjustment of the three major operators, the downstream terminal in the second half of the industry chain will probably face a new round of reshuffle. Photo reporter / Ren Yuming