The expansion of Dr. Peng's broadband access business is under attack

Great Wall broadband was cut off by people's Love, Dr. Peng (600804) expansion strategy into trouble.　　And analysts pointed out that the acquisition of Dr. Peng's failure to highlight the company in the development of broadband access business will encounter the basic operators and strong non-basic operators at the two sides of the difficult dilemma. When Dr. Peng announced in April this year that he would bid for the Great Wall's 50% per cent stake in the Great Wall, it had pointed out in the announcement that the company must accelerate the completion of the business layout of the broadband access business in the country's major cities in the current growth period of Internet access. The Great Wall broadband equity, conducive to the company quickly into the target city's broadband access market, can enable the company through business integration to achieve complementary advantages, play a set effect, effectively reduce operating costs, promote the company's "Broadband Internet Access Service project" The smooth implementation and rapid advancement,　　Enhance the company's influence and market share in the broadband access market. However, at that time, full of confidence, Dr. Peng may not expect it will encounter a strong sniper from the CITIC Network Limited.　　Because Citic Network holds the Great Wall broadband another 50% stake, so in the course of the acquisition of Dr. Peng, Citic Network has the initiative of preemptive right. Public information shows that CITIC Network was established on March 17, 2000, is China CITIC Group wholly-owned subsidiary, registered capital of 2 billion yuan. October 22, 2002, received the Ministry of Information Industry issued the "(national) network elements rental, sale of Business" and "(national) network access Services business" operating license.　　CITIC Network Construction and operation of the backbone of the cable route length of 32,000 kilometers, covering the 167 major cities along the country, at present opened 21 backbone nodes in large and medium-sized cities. Obviously, the CITIC network backed by CITIC Group has a stronger power than Dr Upen. Ren Wenjie, the first venture analyst, said in an interview: "Great Wall broadband is one of the main assets of the CITIC Network, so it is reasonable for the CITIC network to exercise its priority." Now the basic operators all over the world have a strong background of the group, because the construction of the network requires a relatively large investment. Dr. Peng wants to expand through acquisitions, but encounters a rather formidable competitor. "In addition to the CITIC Network, the Great Wall broadband, such as non-basic operators, the three major telecom operators as the representative of the basic operators are Dr. Peng continued in the broadband access business to expand the territory of the formidable opponents." Previous industry analysis that, from the current market performance, the Great Wall broadband is leased basic operators of the backbone network sales broadband business, performance is not eye-catching.　　The Great Wall is also a huge competitive pressure to sell the Great Wall broadband 50%.　　Reporters in the interview found that most of the cable industry insiders believe that, with the telecom operators in the national broadband market increased input, the region's third-party broadband operators living space has been squeezed, especially in the three-network integration accelerated, this trend is increasingly obvious. An analyst who declined to be named told reporters: "The three basic operators are basically doing the wholesale of broadband services, rather than the model of the basic operators is retail." The previous three UniversiadeBusiness does not bother to enter some market segments, but it remains to be seen whether the triple-net fusion is still the case. However, the underlying carrier's channel sinking will certainly make the broadband operating market more competitive. "Although Dr. Peng claims to continue to expand through the acquisition strategy, but in the three basic operators and some of the most powerful non-basic operators under the joint squeeze, Dr. Peng's acquisition of the road is fraught with thorns."