The embarrassment of virtual operators: The price war cannot afford the characteristic service in exploring

In the first half of this year, 4G construction and virtual operators became the hottest topic in the telecoms industry. In particular, the virtual operators around Low-cost, free, flow is not clear to the topic of zero, and constantly be people hot discussion.

This allows traditional operators to suffer a little pressure, and have some action. On the eve of this year's 5 17 Telecom day, the three major operators have lowered the tariff standards. Although the three operators also have intrinsic power to reduce prices, but the virtual operator of the aggravating also to a certain extent accelerated the arrival of tariff reduction.

But for the current telecoms industry, virtual operators are just one chapter in telecoms reform. Since last year, the relevant departments of the state have announced the mobile resale, 4G license plate, Battalion change, Tower Company, the last kilometer of broadband to allow people to enter and other related policies. All this is speeding up the process of reforming the telecom industry.

Shu Huaying, a professor of Beijing University of Posts and telecommunications, said in an interview with the Daily Economic news, the current reform of China's telecommunications industry has come to a critical juncture, the Government should continue to increase efforts to introduce more private capital, to encourage exploration, allow failure, and further strengthen market competition in order to activate market vitality.

The embarrassment of virtual operators: The price war cannot afford the characteristic service in exploring

Every journalist Sun Weitao from Beijing

Virtual operators seemingly scenery, in fact, the situation is quite embarrassing, because the resale price is too high and so on, so that virtual operators difficult to attract users through Low-cost, and to meet the user's personalized needs of the characteristics of the service has not been fully established.

Recently, in Shanghai, held in the 2014 Asia Mobile Communications Expo, the reporter noted that 19 virtual operators in the enterprise, only snail games, music language communications and audio and other companies to participate in the exhibition, this really makes people puzzled.

Yi, secretary general of China Mobile Internet Industry Alliance, told the Daily economic news reporter that the virtual operators thought that they could attract users through low price or even free to improve their main business income, so that even in the virtual operators do not earn money or even lose money, can also be subsidized through the main business, But it is not easy to do so now.

Can't afford to fight the price

In the internet age, Internet companies have trained users to be price-sensitive groups through low-cost or even free publicity. But the virtual operator seems to have lifted a rock and smashed its feet.

Shortly after getting the license, many virtual operators declared that they were cheap or free. But with the virtual operator number 170th in succession, the announcement of the tariff standards to disappoint users.

For example, the virtual operator phone World announced the first 9 package fee, the minimum 29.9 yuan/month, including 80M data flow and 80 minutes of voice calls, the highest 399.9 yuan/month with 3500M traffic and 1000 minutes of voice. The 59.9-yuan file package contains 260M traffic and 100 minutes of voice communication, with China Mobile 58-yuan 4G Internet Package 500M traffic and 50-minute call compared to the advantage is not obvious.

Another virtual operator Ali Communications announced the tariff standards are also users spit slot. Main voice, SMS and Internet are converted into flowmeter charges, the charge standard 0.125 yuan/m to 0.2 yuan/m. Packages outside the 1-yuan refueling package, equal to 5M flow, 6.6-minute domestic calls and 10 SMS.

By contrast, China Mobile 4G tariff equivalent per m flow of about 5 cents, Unicom 4g/3g integration package discount per m flow about 6 cents. So Ali communication Package price advantage is not obvious.

However, these tariff standards still meet the needs of a part of the Low-cost users, but also broke the traditional carrier package design tradition, to abandon the complicated package design.

Independent telecommunications analyst Liang to Ali Communication Tariff design evaluation is that there is no surprise innovation. In his view, this situation was mainly affected by the resale of "wholesale price" by the basic operators.

A virtual operator, who declined to be named, spoke frankly to reporters since resale prices were negotiated last year, operators have fallen sharply on tariffs this year, making it more expensive for virtual operators to get resale prices than traditional operators, and it would be inappropriate to do so at the previous price.

Exerting Force segment Market

Since the price war cannot fight, the virtual operator can only rely on the characteristic service to win. And that's the way most people in the industry point out to virtual operators. Shong, Deputy Secretary-General of China's virtual carrier Industry Alliance, said in an interview with the Daily Economic news reporter that in the mobile Internet era, virtual operators should master the mobile Internet portal through virtual operators, bringing the enterprise itself into it, by innovating the tariff package and stacking different business capabilities, exerting power in the market segments, Rather than compete with traditional operators for the market.

In fact, many virtual operators are also exploring and experimenting, such as car networking, IoT, smart home, mobile education, mobile health care, and international travel services. Companies have different goals because of their choice of objectives. Some enterprises are purely for the virtual operators to come, in order to have a good performance in the capital market, some enterprises are in order to open up new branches outside the main business of the transformation, and some enterprises are hoping through the virtual operator business can be combined with the main businesses to improve competition barriers.

Prior to this, the music communication through the Cross-border approach to the mobile health field, the user through the wearing of intelligent health equipment for body data collection, targeting the target population for urban white-collar, caring for parents of middle-aged and young people, need blood glucose monitoring of middle-aged and elderly and other segments of the market.

Recently, another virtual operator snail game announced a wholly-owned acquisition of domestic game mobile terminal manufacturer Rui Gao, into the mobile terminal hardware industry. The purpose of the snail acquisition of Rui Gao is self-evident, the use of the company's game users customized online gaming machine, and the snail mobile virtual operator business depth of integration to improve the impact of the snail in the field of play.

Competition for the fourth-largest operator

In the face of this tempting big cake in the telecoms industry, every virtual operator is drooling. But it's not easy to get a piece of it.

For example, the music to see mobile health in the field of this model by many people in the industry optimistic, but the constraints are also more obvious. Although the market has a lot of wearable equipment, but most of it is concentrated in the field of smart phone accessories, killer products still do not appear. In particular, the health care sector, although generally optimistic but more cautious, because medical data is different from other communication data, once the data error, it will have a very different effect in medical treatment.

It is not easy to get new business income across the market in segments, which is a cautionary tale. According to the reporter understand, in the United States relatively developed virtual operator market, 2006, the United States Disney access to Virtual operation license, in the children's education market business, parents and children's mobile phone binding, parents can monitor the children's movements, but after 1.5 announced the cessation of operation.

And in the above terminals, the virtual operators optimistic about the division of the market, in fact, not only virtual operators or even the traditional three operators are active in the layout.

In the 2014 Asia Mobile Communications Forum, reporters noted that the three major operators began in health care, education, video, games and other areas of vigorous expansion and exerting force. In particular, China Telecom's eight bases, of which five base began to operate the company, the introduction of external capital for market-oriented competition.

Xugang, deputy general manager of China Mobile marketing, recently said that according to the global virtual operating market development rules, virtual operators in the first five years of business, 70% will die.

Liang, an independent telecoms analyst, said that 90% of China's virtual operators did not think clearly what to do before they were stones, so the virtual operators should find their own positioning. And in the early stages of development, in the system testing, team building and testing the market stage, whether products and services or brand and after-sale, all need time to allow users to recognize.

The transformation of telecommunication reform enters the crucial period and faces the double shackles of system and thinking

Every journalist Sun Weitao from Beijing

Since last year, the mobile resale, the last kilometer of broadband to allow people to enter such policies have been announced, all these are speeding up the process of reform of the telecommunications industry.

Shu Huaying, a professor at Beijing University of Posts and telecommunications, said in an interview with the Daily economic news reporter that the current reform of China's telecommunications industry has come to a critical juncture, the Government should continue to increase efforts to introduce more private capital, encourage exploration and allow failure, and further strengthen market competition in order to activate market vitality.

Administration to market regulation

Since 1999, China's telecommunications industry has been restructured four times, the telecommunications market from the Zhengqibufen administrative monopoly, gradually formed the three major operators under the dominant oligopoly market structure, but the competition is still very inadequate.

Shu Huaying that although the three major operators through competition to further reduce tariffs, but this is not a complete market behavior, and the situation of the telecommunications industry competition has formed a paradox. "On the one hand, people think this is a monopoly, on the other hand, the industry believes that it is too competitive." So last year Davos forum, China Mobile Vice President Zhengmao and economist Zhang to meet in China Mobile and micro-trust who monopolized the issue, there are two different views. This is because of the drawbacks of government-led markets. Shu Hua Ying said.

From the beginning of the last round of telecom restructuring, the government regulatory authorities have been constantly reforming and adjusting the telecom market, but often with the imprint of administrative intervention. Shu Huaying to reporters that the previous telecommunications reform through the Executive order split reorganization, to achieve the so-called market equilibrium, in order to further strengthen the competition in the telecommunications market.

For example, in the 3G era, in order to encourage China Mobile's 3G independent technology TD-SCDMA, the ministry through the net settlement fee for China Mobile to win concessions. And in order to curb a single large China Mobile, the Ministry of China Unicom and Telecom has given two better 3G network system WCDMA and CDMA2000.

But last year, the Ministry of Industry and other regulatory departments issued more than 10 documents, basically to promote the telecommunications market competition for the purpose. This year, for example, 19 virtual operators have been approved, plans to release private capital into broadband "last kilometer" access to the market, publication of the Radio Regulations (revised draft) to increase the distribution of radio frequency resources in auction, to liberalize the pricing power of telecommunications enterprises.

Reform enters a crucial period

However, the reform of the three major operators is still not open to the pace, mainly restricted by the system and thinking constraints. This year, the three major operators are facing the 4G construction task, capital expenditure is large, some of the introduction of policies also make operators worse.

May 6, the Ministry of Finance issued a notice, from 2014 onwards to further improve the central enterprise State-owned capital income collection ratio, state-owned enterprises should pay the proportion of profits on the existing basis of 5% increase, operators also belong to this column. From June 1 onwards, the telecommunications industry into the scope of the pilot, the basic telecommunications services and value-added telecommunications services to apply 11% and 6% of the tax rate, the adjustment of tax rates, the operator's profit is bound to reduce.

Operators said that in accordance with the State Council SASAC unified requirements, in order to reduce the "camp to increase" the negative impact of tax reform, to maintain profits, this year will be reduced by 10 billion yuan mobile phone terminal subsidy. And the state to set up the Iron Tower company things also let some people in the industry do not feel the mind.

Shu Huaying that this is still the government to intervene in the telecommunications market by administrative means, because the regulatory authorities do not understand the specific situation of the market, but with a single performance evaluation criteria to require operators. Since the opening up should continue to deepen, such as allowing private capital to build the tower, independent management, in the tower and pipeline full competition, otherwise can not change the decision-making mechanism, still cannot reach the market full competition requirements.

China Telecom because of the 4G development in the early stage did not get FDD license, so in the mixed ownership of the operation began to exert. At this year's 2014 China Telecom opening and Cooperation conference, China Telecom said it will take the mixed ownership economy as the guide, continue to increase open cooperation, and try a variety of capital cooperation ways to build up new business in key areas, this year will choose 2~3 Company to engage in mixed economy cooperation.

But because it is the state-owned enterprise system, subject to the requirements of state-owned assets to maintain and increase, China Telecom's development has constraints. Shu Huaying said that the reform of China's telecommunications industry has come to a critical juncture, such as the Chinese telecom reform, the Government should allow exploration and even failure, as long as they do not put money in their own pockets on the line, can even carry out employee ownership.

Virtual operators into the Bureau of telecommunications "flow not clear 0" start

Every journalist Sun Weitao from Beijing

Xugang, deputy general manager of China Mobile's marketing department, said that China Mobile's virtual resale business will be released as soon as August this year, at a 2014-year mobile Virtual operator summit in Shanghai. China Mobile has already reported 17 virtual carrier partners to the Ministry, and is awaiting final approval from the ministry.

In fact, China's mobile virtual operators have lagged behind China Unicom and Chinese telecom for some time. As early as the end of last year and earlier this year, the Ministry of Industry issued a virtual operator license to 19 companies, most companies have begun to carry out the trial commercial.

It is these enterprises from the beginning of a low price, no monthly rent, flow is not clear 0 or even free slogan stirred the telecommunications market, attracted a lot of people outside the industry attention.

Traditional carrier tariff reduction

Since the Ministry of Industry has issued 19 virtual operator licences, virtual operators have stirred the telecoms industry like catfish. As soon as they got their licences, the companies constantly advertised to consumers such slogans as low prices, 0 traffic, free combination packages and even free.

For example, the snail game launched 170 card-free products, claiming to voice and SMS business all free. Jing-dong, Suning, Ali and other virtual operators launched a rent-free fee, broke the package limit, users can be free combination, the use of how much cost, and the flow is not clear zero.

This is the pain of the traditional three telecom operators. Since entering the 3G and 4G era, users believe that the traditional operators in tariffs and traffic prices set too high, hoping to further reduce the tariff standards. In particular, the 0 issue of the package, before the user has to sue the operator to court.

It may be that the propaganda of the virtual operators has played a role. On the eve of this year's May 17 Telecom day, traditional operators began a sharp reduction in package tariffs. China Mobile announced that from June 1, the 4G new tariff threshold will be lowered to 58 yuan, the maximum rate of flow per unit drop up to 50%. China Unicom has launched a free combination package for sale on the internet and has made 80 percent promotions for tariffs during the telecom day. In addition, three operators have or plan to launch a quarterly traffic package to correspond to the problem of zero flow.

Although traditional operators because of the lower cost, there are intrinsic price-cutting power. However, many people in the industry believe that the virtual operation of the package design has begun to traditional operators of the original product tariff system has impact or even subversion.

A virtual operator in charge that the traditional operators have not slashed tariffs before, is not incapable of doing it, it is the virtual operators to launch Low-cost, free and flow is not clear zero, to a certain extent, accelerated their reduction package fee to stabilize the user.

Shong, Deputy Secretary-General of China's virtual carrier Industry Alliance, said in an interview with the Daily economic news reporter that the emergence of virtual operators broke the monopoly of three operators, bringing the "catfish effect" to the telecom market, and pushing the reform of the communication industry to promote tariff reduction and service promotion.

"Catfish" pushing operators to reform

The influence of virtual operators on the tariffs of traditional carriers is only one aspect, and it is also constantly impacting on talents, system structure and thinking mode.

From last year's Ministry of Industry to determine the issuance of virtual operator license, many virtual operators began to operate the executive talent to dig horns, or even millions of annual salary.

For example, China Unicom's original marketing department general manager Zhou You joined the Eschde, the Beijing-East Mobile Resale Division general manager Pao has been in the China Telecom Supervision Affairs Department, formerly the Guangdong Unicom internet Business Department general manager Shuai is the Suning interconnection person, formerly China Mobile Beijing Branch Song Hongshen joined the bus online and so on.

An operator of the daily economic news reporter reluctantly said that because of state-owned enterprises system, the three operators internal incentive system is not perfect, leading to innovation than private enterprises, it is difficult to attract talents.

In fact, traditional operators are also seeking change. In this respect, China Telecom walked in front. At the opening cooperation conference held by China Telecom in May this year, Wang, chairman of China Telecom, said that it would continue to increase the level of open cooperation, adopt a variety of capital operations, promote corporatization in the emerging business and ICT business, and introduce more market-based means such as external strategic investment and employee shareholding.

Then at the beginning of June, China Telecom's exclusive game-oriented interactive company will introduce shun network technology and Chinese Cultural Industry Investment Fund as strategic investors, further explore the mixed ownership of economic reform.

The three operators also began to learn how to change the way the Internet thought. For example, operators use the user's money to finance. June 6, Guangdong Unicom and Baidu, rich-country funds jointly released the communications financial products "Wo fu." Prior to this, China Telecom has launched a "Tim Yi Bao," The phone calls Internet banking products. China Mobile also said that the relevant financial products are also in progress.

The major background of the active change of the three major operators is that the operators ' main business voice and SMS are in the decline, while the flow business is growing rapidly but the income is hard to make up for the decline of other business, so the three operators are beginning to exert their non telecom business.