China Telecom will reorganize

The previous telecommunications reorganization, the separation of the Internet industry has been a shadow, but it is always just a "statement." Recently, "Financial eleven people" learned from multiple sources that a more radical separation and reorganization of the Internet industry was re-introduced. Separation of the Internet industry refers to the monopolization of the basic networks with public nature, such as backbone networks and access networks, and the competitive operation of data services, such as data services, operated by social enterprises and free competition. At the same time, the business operators operate in the network. Pays access fees.

"Financial eleven people" got the news that a "national base station company" jointly held by the three major operators has been finalized with a registered capital of about 10 billion. After its establishment, the company may become the 54th company appointed by the Central Organization Department. This means that the newly established super base station company will rank on an equal footing with the current three major telecom operators. The core group of the China Telecom Group that participated in the preparation of the National Base Station Company stated to “Financially Eleven People” that after the establishment of the company, in the first phase, the three major carriers will build new base stations, towers, and pipelines, and the next three operations will be completed. Instead of building a base station, a merchant leases a base station of a national base station company, and maintenance work is also handed over to a national base station company.

In accordance with the planning of the policy level, in the later period, the company’s inventory of base stations, towers, and pipelines will be gradually installed into this national base station company. Given that China is currently in the climax of 4G network construction in the next three years, even if the first phase is only loaded with new base stations, the national base station company's volume is quite amazing. For China Mobile alone, it plans to build 500,000 4G base stations by the end of this year, and will install new companies at that time.

However, the impact of the establishment of a national base station company is not its volume, but its change in the entire basic telecommunications operating landscape.

Over the years, the industry and the academic community have repeatedly discussed the separation model of the Internet industry. Previously, operators believed that this move was to snatch up their precious network resources. Some scholars also believe that this will form a new monopoly group. Therefore, the separation of the Internet industry has always been considered an idealized policy measure that may not be suitable for the actual conditions in the Chinese market.

However, “Financial Eleven” was informed that the establishment of the National Base Station Company was prompted by the three major operators.

China Telecom and China Unicom are very easy to understand this matter. Both the number of base stations in stock and the number of new base stations cannot be compared with China Mobile. Once merged, the two parties can use more resources than new ones. With many costs and costs to quickly deploy 4G base stations. China Mobile also has its own deep meaning. LTE needs to be covered in depth and more new sites are needed. With the depletion of site resources, it is clear that opening up the site resources of the three companies is conducive to the promotion of LET.

However, given the different resource advantages of the three major operators, it is conceivable that during the establishment and operation of the Super Base Station Company, it will be full of games and infighting. For example, will China Mobile surrender its original site? With the progress of business, China Telecom will open up copper and optical fiber resources in its entirety.

Today, the three major operators have fallen into a stalemate in the new converged and competitive environment. Traditional telecom operation thinking has become weaker in the face of competition from Internet companies. After the separation of the network industry and the construction and maintenance of hardware infrastructure, operators may be able to move forward with ease. No matter whether it is the construction of smart pipelines or the frontal confrontation of OTT companies, it will be easy.

From the decision-making point of view, this decision is not a small risk. For example, the technical upgrade may be slowed down, and the business or service provider may face difficulty in landing due to the abuse of the monopoly position by the base station company. But on the big side, after this move, the whole game should be alive.