The mobile communication resale business means that the enterprise can contract part of the communication network from the basic telecommunication operator, repackage it into its own brand, and combine the package and sell it to the end user. This part of the enterprise is also known as a virtual operator .
With the launch of formal commercial use, the mobile resale business will usher in a new development opportunity, not only canceling the restrictions on the capital attributes of the operating entities, but also the state-owned enterprises and foreign-funded enterprises can apply for resale business, and enrich the scope of resale business for the first time. It is proposed to encourage resale enterprises to develop new technologies and applications such as the application of the Internet of Things industry.
According to industry experts, a formal commercial license means more possibilities for business expansion and an imaginative space for new ways of realizing. In addition, the application for the mobile resale business requires the submission of a commercial contract with the basic operator. Today, each basic operator has more than a dozen partners, and the entry of new enterprises means that the signing of commercial contracts will be more stringent.
According to the forward-looking industrial research institute "China Communications Equipment Industry Strategic Planning and Enterprise Strategy Consulting Report", the emergence of virtual operators is precisely due to the renewal of telecommunications technology, the increasing demand for telecommunications services and the surge in the types of telecommunications services. Lead to changes in the role of telecom operators. The emergence of virtual operators has changed the way of previous telecom operations.
Analysis of China's Virtual Operator Industry Status and Future Development Prospects
Independent telecommunications analyst Fu Liang said that although more new companies will be introduced to participate in the competition in the future, the formal commercial license means that enterprises can enrich the original ecosystem and provide users with more viscous services in combination with their original business. To achieve mutual conversion between users. It is precisely because of such gold content that even if the previous pilot companies have not developed well, they should also insist on applying for operations. Previously, Alibaba, Jingdong, Xiaomi, and Suning Yunshang all obtained pilot licenses and carried out related businesses.
"For the time being, no foreign-funded enterprises have found us. After the policy comes out, it takes a certain reaction time. There is a market segment where foreign operators may notice that some Chinese people go overseas and hope to continue to use Chinese numbers, but foreign single-card machines are mostly There are few card machines, and it is very troublesome to change the card. It is hoped that the two numbers can be 'integrated into one'. For example, the user is a number, but there are actually two numbers behind it. Such a service still needs to obtain a virtual business license. An insider of a basic operator told the IT Times reporter. In China, the system has a large number of users, and virtual businesses with large online traffic will become the main force of their cooperation, while foreign companies are likely to pay attention to corporate services rather than personal services. "Individual users are more difficult to do than service companies. For the C-end market, both consumer and management complaints are required. The business system is also very complicated. You may be able to earn profits from 10,000 individual users. You can earn money by serving only one company. "The above person said.
“Opening up mobile resale business to foreign capital is one of China's WTO open commitments. For existing pilot enterprises, the scope of financing has been expanded. After the introduction of foreign shareholders, they can also apply according to regulations and procedures.†China Telecom and Information Technology Institute's telecom industry research Xu Lidong, director of the department, told the IT Times reporter that in accordance with the Regulations on the Administration of Foreign-invested Telecommunications Enterprises, foreign-invested telecommunications companies can operate basic telecommunications services and value-added telecommunications services, and specific business classifications are implemented in accordance with the provisions of the Telecommunications Regulations. The proportion of foreign investors in a joint venture telecommunications enterprise operating a basic telecommunications business (excluding radio paging services) in the enterprise shall not exceed 49%. In a joint venture telecommunications enterprise that operates value-added telecommunications services (including radio paging services in basic telecommunications services), the proportion of foreign investors' investment shall not exceed 50%.
As early as two or three years ago, the virtual operators in the pilot began to deploy the Internet of Things. In the Notice, the Ministry of Industry and Information Technology clearly stated that the resale enterprises should develop the Internet of Things industry on the premise of ensuring the implementation of industry card real-name registration and network security. Application of new technologies and new applications. "This is the first time for the virtual business to formally propose the development of the Internet of Things, indicating that the government authorities allow and support the resale of IoT business, and the basic operators must provide the necessary resources, technical support and network support for the resale enterprises." Xu Lidong Say.
Entering the Internet of Things is a new opportunity for the development of virtual businesses. About one-third of the virtual operators in China have begun to aggressively attack the Internet of Things market. In 2017, Globetouch launched C-round financing, a company focused on global connected Internet and IoT services. Existing shareholders participating in this round of financing include Verizon Ventures and Zeev Ventures. Prior to this financing, China's virtual business 263 strategically invested in Globetouch. 263 mobile communications executive vice president Wu Bin told the "IT Times" reporter, Globetouch and 263 cooperation including personal outbound roaming and global resource connection management. In the development of the Internet of Things, the positioning of 263 is not the channel of the basic operators, but the ability to superimpose big data cloud computing, AI and other capabilities on the basis of connectivity, and develop more applications that meet the different needs of the market. Too big, the basic operators have the resources and the ability to lay the entire industrial chain of the Internet of Things. Although the virtual business does not have its own base station and transmission, it can combine with its own capabilities to launch better services for the market."
Virtual operators are choosing the direction of deepening the Internet of Things based on their own business. For example, Xiaomi Mobile announced in December 2017 that its Internet of Things (IoT) card circulation exceeded 10 million mark, with the sales advantage of its own hardware and smart devices. Become the first virtual operator in China to reach this number.
What kind of support can the basic operator give to the virtual business? The above-mentioned basic operator insiders said that, for example, in the form of the card, in addition to the SIM card-like IoT card, there is also a high-temperature, high-humidity industrial-grade SIM card. Basic carrier support is required; without a physical card, the virtual SIM card method of "burning" the IoT card in the machine by means of over-the-air numbering requires the basic operator to support the virtual operator on the large network platform side. At the application level of the Internet of Things, we also provide technical support, such as providing network data information."
In the past few years, it has been difficult to make a profit from the retail resale business. It is inevitable that people will worry about whether the development of the Internet of Things will repeat the same mistakes. In this regard, the internal operators said that the Internet of Things has narrow and non-narrowband points. The narrow-band Internet of Things is characterized by frequent online, but there is no special requirement for speed. Now it is mainly used in electric power and hydraulic meter reading; The requirements for narrowband Internet of Things require higher bandwidth requirements. In either form, there is market space.
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