"Zero upside Down" phenomenon

Absrtact: Although the Ministry of Communications from the end of last year has issued a series of three virtual operator licenses: December 2013: Phone world, sharing online, million network (Alibaba), Music language newsletter, Huaxiang, the audio, Jing-dong, northern latitude, Zhejiang repeatedly, di-shun, bus

Although the ministry has issued three consecutive licenses for virtual operators since the end of last year:

December 2013: Phone world, sharing online, million network (Alibaba), Music language newsletter, Huaxiang, audio, Jing-dong, northern latitude, Zhejiang repeatedly, Di-tong, bus online. January 2014: Eschde, 35 interconnection, snails, gome, suning, medium-term group, the Yangtze River era communication, far-special communications. , July 2014: HNA, Fuji Kang, Lenovo, Hisense, peace, People's livelihood, star United States, Phoenix, Haier, millet.

But so far, there is still no virtual operator to start a bold scale. The important reason is the so-called "zero upside down" phenomenon.

"Zero upside down" refers to the basic operators (mobile, unicom, telecommunications) retail traffic for the consumer market, call, SMS average price below the wholesale to the virtual operator's average price.

This phenomenon is contrary to the business model of the virtual operator, which relies on wholesale-retail communications services to gain profits. The main reason for this phenomenon is that the virtual operators to obtain "wholesale price" is based on the end of last year, the virtual operator license approved by the basic operators and the price of the agreement. However, after the signing of the agreement, the three major operators to use just from the Ministry of the Independent Pricing power to carry out the intensive price reduction, resulting in "zero upside down."

However, according to the report of the first financial daily, the three basic operators are about to sign a "mobile resale price dynamic adjustment mechanism" agreement with five virtual operator representatives. The agreement to ensure that the basic operator fees and virtual operators to obtain the wholesale price between the "dynamic linkage", the former price reduction or to synchronize prices. This agreement is also the common practice of foreign communication industry. But the current news is unclear whether all virtual operators can sign such agreements or just policy pilots.

According to the Phoenix Technology news, in the solution of the "zero upside down" problem, after the market rumors 11 more virtual operators will carry out the scale number. Therefore, not only the price war can be expected, and in the case of millet, Alibaba, Beijing-east and other Internet companies joined, the faltering communications industry will certainly derive some new business models, not just 24K pure gold SIM card this strange thing.