What is the advantage of China Telecom?

Absrtact: This is an exclusive contribution from the insider, trying to re-examine China Telecom as an atypical sample of SOE reform and transformation from a large historical perspective. It's time to rethink the advantages of China Telecom. Insiders re-release of China Telecom's ten-year-old defeat this is a

This is an exclusive contribution of the insider, trying from a large historical perspective, to re-examine China Telecom, the reform and transformation of the atypical samples. It's time to rethink the advantages of China Telecom.

Insiders re-release of China Telecom's ten-year-old defeat

This is an insider's contribution, trying from the big historical angle of view, re-examine China Telecom This state-owned enterprise reform and transformation of atypical samples, and try to on a larger time scale, analysis and thinking of China Telecom's acquisition and loss.

He said he had no intention of criticizing any particular person, "after all, we are looking back on history, and we cannot ask the authorities of that other place to have a foresight." "Because of the particularity of identity, he chose to publish this article anonymously, the following for the full text, the small title for the Titanium Media editor added:

Rowing against the wind-this is the root cause of China Telecom's failure in a downwind and somewhat emotional transition.

China Telecom, which has the royal blood, the industry orthodox old telecom operators, its ten-year transformation of the road, like a total want to fly against the wind birds, desolate and solemn and stirring. And his younger brother, China Mobile, in this decade, it is like a pig in the downwind, even without wings, also shun the boat, quickly beyond big Brother.

There are a lot of posts on the internet-"China Telecom decade-long transformation", listed a number of China Telecom restructuring not successful reasons, there are a lot of suggestions. That is an insider perspective of the article, a lot of details, I agree, but only on the transformation of China Telecom in the root causes of failure, disagree.

Because, in my opinion, the cause of China Telecom's unsuccessful transformation in the past decade is the strategic choice of China Telecom, always want to seek its contrarian upward, and missed the major industry opportunities, so far, is also so deep, so Wei proposed to go to telecommunications.

I think, is China Telecom's own strategic myopia or strategic opportunism, is the root cause of the transformation failure!

Perhaps many people disagree with this view, because in many people's view, China Telecom has a gorgeous management team and leader, foresight and sagacity, is not a scarce product.

But the status quo and history of the cold tells us that strategic myopia and strategic opportunism has always been lingering in China Telecom, so that China Telecom in the key industry is always rowing.

The first big strategic mistake: PHS

In whether to launch PHS, China Telecom was not no choice, and this choice, not as if China Unicom had to launch a CDMA network like political considerations. The attempt to use backward technology, in the harsh industry control constraints, to seek success in the mobile communications market, is tantamount to a no future opportunistic choice, short-sighted and bleak.

Don't talk to me about the fairness of China's communications market, nor discuss the issue of so-called regulation of telecommunications market. China's communications market has always been an executive power-led game without rules.

This, I am afraid that China Telecom's colleagues have more feelings and say.

The reality is that after years of planned economy, China's communications market has become the first market for several market-oriented reforms. China's telecommunications market has long been regulated by the reform of the British system, and the fact continues to the present--although theoretically three operators in China are all business operators, I'm afraid every wife knows what a joke it is.

With the development of mobile communication market, China Telecom, which never get the mobile license, has been caught in a serious imbalance after witnessing China Mobile. This imbalance is not only a factor of managers, but also a large number of employees in the high income and high treatment of mobile staff before the loss of psychological advantage factors.

The introduction of PHS, I am afraid that the Chinese telecom policy makers before the eyes for one bright, as a treasure! So regardless of the policy of the border, but also regardless of opponents of the opposition, not to worry about the continuity of technology, China Telecom began to launch a small smart project, and quickly obtained a certain mobile business market

I think, with the growth of the number of users and income growth, I am afraid the decision of the Chinese telecom people, everyone has the joy and anticipation.

However, the market is not dynamic, a backward technology, the inherent disadvantage of the technology system, in the competitive advantage of the mobile communication network and more aggressive market competition, the strong counterattack, after the climax, gradually decline.

Perhaps some people think that it is China Telecom camera chose PHS, to a certain extent, to curb the decline of China Telecom fixed network business trend, to help China Telecom through a certain degree of transition difficulties.

This view clearly does not take into account the China Telecom's stubborn PHS opportunity cost: Lost in other business areas of investment opportunities, and for China Telecom in the mobile communications industry market operation accumulation is almost zero!

In other words, after getting the mobile license plate, China Telecom found that it had been able to complete the CDMA network is not the fact that the operation of PHS talent, team, mechanism, industrial chain has no value at all!

To accept the CDMA network, in the acceptance of the talent from China Unicom, there are some repeated and tortuous.

Looking at the global telecoms operators, and China Telecom to seek the transition almost in time fully synchronized with the British Telecom, is in the mobile communications business is about to explode on the eve of growth, decisively abandoned the mobile communications license, stop. Dedicated to engage in their own fixed-line network transformation business.

I don't think such a thing could happen to China Telecom-if he had a mobile licence, he would not quit the mobile market even if he faced huge losses.

However, in whether to launch PHS, China Telecom was not no choice at that time, and this choice is not as if China Unicom had to launch a CDMA network as a matter of political considerations.

The attempt to use backward technology, in the harsh industry control constraints, to seek success in the mobile communications market, is tantamount to a no future opportunistic choice, short-sighted and bleak.

The second big strategic mistake: Optical network urban city late pain and missed "broadband China"

Only chasing short-term profit indicators, I think it is the main reason for China Telecom to put forward light network city, but it is late. I do not know whether China Telecom will be with the country's urbanization, forward-looking correction of their own broadband market strategic positioning and development direction, but I think if China Telecom continue to adhere to the advanced urban areas of priority strategy, may be China Mobile or unicom once again staged rural siege of the city and overtook the drama.

China Telecom operators are always looking for models abroad. This practice has remained unchanged until now, and we have always lacked the courage to be a leader.

But as one of the world's largest fixed-network operators, China Telecom, I am very surprised, in the years of many of the calibration study, selectively overlooked the forerunner of BT.

As early as 2006, BT began to focus on the full IP of the 21st Century Network plan, began to lead the global fixed network operators to transform the limelight, and the key is that BT also achieved good results.

BT, even in the near future, has rumoured rumors of its return to the mobile-phone market, asserting that it will be a decade of fixed-term networking over the next decade, and is launching its 21st century network upgrade and Super Broadband program.

Late to recently, China's broadband strategy is always in the womb.

Of course, you can also blame the industry regulator industry planning adverse, but if this matter in a corporate strategic decision-making perspective, we also see China Telecom in broadband this matter of strategic myopia.

In the broadband market, China Telecom as a leading leader, and did not provide enough good services and products to the market, high broadband service prices and low quality broadband services, that is seriously restricting the Chinese Internet industry and social information level of improvement, Also made China Telecom lost its strategic opportunity to become a broadband monopoly giant.

China Telecom lying in the net between the settlement and the income than the residents of the high prices of the hotbed, so leisurely spent 10 years.

In the decade, China Telecom did not invest heavily in broadband networks in its weak northern market, nor did it push broadband coverage fast in its region of the south where it has an absolute advantage.

Not to mention proactive expansion of international broadband exports, and even expand the global enterprise ICT business and services!

Until 2008, China Telecom began large-scale expansion of international export bandwidth, only to the United States to the direct link, began to set up overseas companies to market expansion.

As a very early proposal to become the world's leading integrated information service provider of China Telecom, we have for a long time did not see the word played a role in the world.

Today, China Telecom just think of Light network city, hastily launched, but found that labor, equipment costs are not the same year, and their own money, but also in order to develop mobile communications market, constantly appear stretched. Has long missed the important leading edge window period.

And China Telecom's high hopes of the light network city, it once again shows its strategic short-sighted-always want to be in the highly profitable areas of rapid recovery costs. So China telecom significantly limits his fiber-optic broadband strategy to serve the city, or, more precisely, to the large cities north.

Just chasing short-term profit indicators, I think it is the main reason for China Telecom to put forward light network city, but it is late. I don't know whether China Telecom will revise its strategy orientation and development direction of the broadband market with the process of national urbanization, but I think if China Telecom continues to adhere to the priority strategy in developed cities, it may be once again staged by China Mobile or unicom to play the role of the rural siege city.

To mention the internet star of China Telecom that year, in the author's opinion, China Telecom did not realize that the decline of fixed-line is the rise of broadband, did not realize that the explosion of the internet will bring a huge demand for broadband networks, even if the internet star of China Telecom can be a big development?

Moreover, in the absence of quality broadband network services under the premise of the Internet stars will sooner or later encounter bottlenecks!

The third strategic mistake: premature mobile internet planning, not keep up with the size of the market users

In many people's view, China Telecom has a leading flexible mechanism on the mobile Internet, such as innovative incubation companies, the introduction of external capital, independent operation of professional firms, eye-catching internal investment quotas and, of course, a more open and flexible cooperation mechanism with internet companies. But all this in China Telecom mobile market users in the scale of the face, I am afraid it seems to be struggling.

The mobile Internet market is a market of users ' economies of scale.

It's also a winner-take-all hell-if you're not the first, then you're worthless. And China Telecom's internal mechanism obviously can not carry this dream, the global telecom operators also did not succeed in the precedent.

While China Mobile's attempts to move the internet market have been criticized by many, it is undeniable that China Mobile is still ahead in its three telecoms operators, relying on its vast base of user size.

The only one that can compete with the Internet telecom operators launched the Internet business, I am afraid only China Mobile's mm mall and fly a letter.

In the mobile internet market, China Telecom is probably a new premature baby-far less than the size of the competitor's base and China Telecom's ambitions on the mobile internet.

In many people's view, China Telecom has a leading flexible mechanism on the mobile Internet, such as innovative incubation companies, the introduction of external capital, independent professional firms, eye-catching internal investment quotas and, of course, a more open and flexible cooperation mechanism with internet companies.

But all this in China Telecom mobile market users in the scale of the face, I am afraid it seems to be struggling.

and the so-called internal entrepreneurship mechanism, for most of the old state-owned enterprises have been accustomed to the cultural mechanism of the people, I am afraid it is only a reading glasses in the middle of the month.

The heavy personnel history baggage and the human capital structure as well as the traditional enterprise culture, how can quickly adapt the high level nimble mind?

Entrepreneurship or unemployment? Everyone has his own steelyard. The real entrepreneurial spirit of the people I am afraid like Ding lei, as early as ten years ago has run away!

China Telecom's behavior and ideas in the mobile internet field seem to me to be tangled up between imitating rivals and learning Internet companies.

In fact, China Telecom is more of China Mobile as a reference frame.

We can see that the so-called open and flexible mechanism of China Telecom does not play a role in the business that is regarded as an important area. Despite the wind, China Telecom is interested in the weak and weak cooperation with NetEase to restructure wing letter or wing chat business, but in most of the Internet business area, and his telecommunications industry competitors, outsiders are difficult to meddle.

China Telecom claims to be a platform provider, but the fact is that the Internet seems to be able to make money in the field, China Telecom still copied the approach of his competitors, and in those who can not see the market prospects, the current number of mobile users in China Telecom, there is a long tail market developers how much attractive?

And in the choice of partners, China Telecom also continued the strategic short-sighted and speculative choice.

Who still remember that year China Telecom in the field of instant Messaging and MSN cooperation? Now MSN has been in the global retreat-apart from the Chinese market.

As the smallest operator of a mobile user, although China Telecom put forward the positioning of the three, but in practice we still see is the spread of pepper-style, in the former China Mobile, and before the major Internet companies under the sniper, outsiders and their own people, but also how self-confidence and perseverance, at the risk of how much, Can and China Telecom in the field of mobile internet through thick and thin?

Do not want to give up any possible opportunity, only to do addition, I am afraid is also a common fault of Chinese operators.

What could be the next strategic mistake: continued opportunistic 4G?

In many interpretations of the 4G license plate, a lot of people for China Telecom's statement, whether it is rented or built, China Telecom seems to be delicate and incomparable. But this is likely to be the beginning of China Telecom's missed opportunity again. In the 4G, for China Telecom, if the real issue of licensing, I am afraid the most important question is money.

On the 4G, will China Telecom again commit strategic opportunism errors?

Sometimes, when we look at the remarks of leaders of state-owned enterprises, you will feel a tendency to be schizophrenic. They are sometimes like politicians, sometimes too much like Zhou Skinner.

In many interpretations of the 4G license plate, a lot of people for China Telecom's statement, whether it is rented or built, China Telecom seems to be delicate and incomparable.

But this is likely to be the beginning of China Telecom's missed opportunity again.

Vague and vague statements of course may come from the pressure of government departments and capital market considerations, but from a real enterprise of the foundation of Evergreen, China Telecom can have its own choice.

On the 4G, for China Telecom, if the real issue of licensing, I am afraid the most important question is money! Whether it is a TDD licence or a FDD licence, China Telecom may not have much surplus in the home to quickly build a network and keep up with rivals ' pace.

And I think China Telecom will not be confused, if he does not take TDD license, the country will once again let China Mobile transfer payment 50 billion for its construction FDD network, moreover, said back, 50 billion for China Telecom, almost completely rebuilt FDD network demand, I am afraid is a drop in the bucket.

After all, CDMA network and WCDMA different, according to China Unicom's position, only need 10 billion to complete the key areas of 4G coverage-although I do not think it will be true, but in any case, China Telecom's network investment will be far greater than the Chinese unicom is an indisputable fact.

So what if you choose a licence that boasts the most sophisticated technical standard? To know that global telecoms investment depends on China, the 4G market in China will be the largest investment market in the future. Large-scale investment by competitors will obviously siphon the resources of the industry to invest in power, which may result in the lack of users of China Telecom in the short supply, these downstream manufacturers do not have much will to provide quality services to China Telecom.

Moreover, China Telecom also has to invest in the broadband market, which is another place that requires huge sums of money to invest.

In the 4G choice, known as the most politically-literate China Telecom seems a bit tangled and hesitant.

Where the road lies--maybe there are several directions worth thinking about

This topic needs to re-examine the advantages of China Telecom, or China Telecom should seek the advantages of what?

Obviously, the intention in the mobile communications market than China Mobile, it is not possible, but let China Telecom to abandon the mobile communications market is also clearly irresponsible, in my view, the mobile business can only be a differential competition for China Telecom means and tools, rather than an end.

Therefore, in the mobile business market, China Telecom should seek asymmetric technical competitive advantage, focus on market segmentation to find the needs of differentiation, and the so-called differentiation, nature can not be separated from China Telecom's fixed network advantage, that is, with fixed-line broadband services unrelated to mobile business China Telecom should take the initiative to give up.

Broadband, Natural is China Telecom's most core advantage, huge customer scale is also the core market value of China Telecom, Nature, a world-leading integrated information service provider of China Telecom, should not just look inward to the eyes of customers in China, but should be more in the international market to find new markets.

In this regard, the family and enterprise two types of customers, domestic and foreign two markets, China Telecom needs to invest heavily in broadband services.

The cloud and Internet of IT infrastructure will also provide new technological opportunities for China Telecom to integrate ICT services at lower cost, and I think in this respect, the cloud service with broadband pipelines will not be a dream, and can become the foundation of China Telecom's dream.

As for the 4G licence, how to choose, I think China Telecom should have its own self-knowledge, and its own entrepreneurial nature and the competitive situation at home and abroad have a clear insight, I still that sentence, in the mobile market, China Telecom should not hold unrealistic positioning, but should focus on differentiated routes.

As for the so-called mobile internet business, for telecom operators, especially for the alleged not to make blood money and immoral state-owned enterprises, has always been just a huaquanxiutui, a taste of deterrence can be, must not think that really can carry the century telecom transformation dream.

Conclusion--The predicament of the development of Chinese state-owned enterprises

We can not put too much blame on China Telecom, if we can have a little understanding of China Telecom's reform and development history, this is a typical enterprise or the government's two yuan deviation from the tangle.

But I think, with the deepening of institutional reform and the depth of market-oriented development, let the market to market, let the power of power, one can dance with the market baton China Telecom, is not without prospects.