The arrival of telecom reorganization and 3G has allowed telecom operators to re-run opportunities.
"China Telecom has determined the next step in the development of ideas, clearly put forward a new transformation strategy, we call it a 'new three-step'." At the "China Telecom CDMA Industry Chain Summit Forum" held recently, China Telecom Group General Manager Wang Xiaochu said.
In fact, this is the second major transformation of China Telecom under the leadership of Wang Xiaochu. In 2005, Wang Xiaochu, who was transferred from China Mobile to China Telecom, faced the plight of China Telecom’s fixed-line phone market, “increasing subscribers but not increasing revenues†and even “increasing revenuesâ€, and for the first time proposed China Telecom. It should be transformed from "basic network operator" to "integrated information service provider."
In this new round of transformation, 3G and terminal services will play a crucial role in the success of the transition. At the meeting, Wang Xiaochu first disclosed China Telecom’s “Twelfth Five-Year Planâ€: It plans to add more than 30 million mobile users each year. By 2014, the total number of users will reach 200 million. In the next 3 years, China Telecom will add new users. More than 70% of mobile phones will be smart phones.
Data business will focus on revenue
Although the three major operators are aware of the importance of data services, the growth of new users and traffic volume of China Unicom and China Mobile is still the most important driving force for stimulating revenue growth. Even for China Mobile, the data service revenue accounted for only 31.2%.
"For China Telecom, the voice service will no longer be the focus of revenue. In the future, we must use data services as the core and establish a more reasonable business model." Wang Xiaochu said.
The reason Wang Xiaochu was able to have this kind of emboldening was because after the first round of transformation, the income structure of China Telecom has changed a lot.
According to data disclosed by the company's 2011 work conference, in 2010, the proportion of non-voice revenue of China Telecom has increased from 26% in 2005 to 56.8%, and mobile, cable broadband, value-added and comprehensive information services have maintained a growth rate of more than double digits. Revenue from fixed-line voice services fell from 70% in 2005 to 29%.
Wang Xiaochu said that the "new three-step" strategy includes that China Telecom is not willing to play only a pipeline for the growth of various new businesses, but should realize the intelligence of the pipeline.
This includes the establishment of a comprehensive platform that becomes the provider of the integrated platform. Specifically, with the advent of the mobile Internet, various new technologies have appeared, such as new payment methods and new geographic location services. China Telecom hopes to establish a comprehensive platform for all these new technologies and new models.
Second, vigorously develop content applications. However, Wang Xiaochu emphasized that China Telecom should only appear as a "participant" in this process, and a large number of value-added services should cooperate extensively with SP and CP.
“The development of the mobile Internet has brought opportunities to the entire industry. The 3G services of the global telecommunications industry have entered a period of rapid development. Although China is slower than Western countries, China has entered a period of rapid growth since the first quarter of this year. This is the early stage of 3G explosive growth.†Wang Xiaochu said that 3G has become the main driver of China Telecom’s revenue growth.
Under this idea, three months ago, China Telecom had just established an innovation business unit and began to establish eight value-added service bases nationwide. According to Xiao Jinxue, general manager of the Innovation Business Department, telecommunications did not give the department a revenue target but only a request. This department will use 3 years to 2013 to build the user's mobile Internet experience.
Not ample "time window"
On June 20, the three major operators announced the number of new 3G users. As of May, China Mobile added 2.62 million new subscribers, China Unicom added 1.138 million subscribers, and China Telecom added 1.83 million subscribers. Competition enters a stalemate.
“China Telecom, as a traditional fixed network operator, has an obvious and urgent opportunity in the 3G era.†Wang Xiaochu said that now is the era of smart phones, which operator chooses which operator, the premise is the terminal, then the price, and finally it is Operators, which prompted China Telecom to make changes.
Faced with the previous weaknesses of the CDMA industry chain, China Telecom further increased the scale of centralized mining and expanded the proportion of socialized channels. At the summit forum, it threw out 40 million terminal procurement figures, and the total amount will reach 40 billion yuan. China Telecom estimates that terminal demand will be around 60 million units throughout the year.
In order to accelerate the development of terminals, China Telecom will further increase its subsidies for smart terminals this year, and the amount of subsidies will increase to 42%. However, the time left for mobile phone manufacturers is still urgent.
"This time, Chairman Wang Xuehong came over and gave us instructions that we should be bolder and we must move faster, especially in the Chinese market." Ren Weiguang, president of HTC China, told the reporter that HTC is currently in the world. The smartphone market accounts for about 10% of the market, but the market share of smartphones in China is less than 3%. "There is too much difference with the global level. The Chinese market is so big that it depends on whether you have the ability to take it down," he said.
In order to accelerate development in a short period of time, Ren Weiguang said that China is in the stage of rapid upgrading of smart phones. “Consumers don’t need to form their own judgments for a long time. Which brands have advantages in the smart phone market? The time window will not exceed one year, and it will be very difficult even if you take it one year later."
Motorola's performance is even more pronounced. For it to bottom out, China has become the most important market in addition to the US market, and it can be described as a "rescue." The XT800 customized by Motorola and Telecom has become one of the most profitable machines in China.
The market left Motorola's window is also very urgent. According to Apple’s CDMA version of the iPhone plan, China Telecom’s introduction of the iPhone at the end of this year is very likely, and this will have a direct impact on Motorola’s current star products.
Therefore, it is easy to understand that although Motorola's star product milestone generation and second generation products are all first released in North America and then introduced into China, and all are WCDMA standard, Motorola's global milestones have been debuted in China at the CDMA industry chain conference. Products, not only earlier than the North American market, but also earlier than the WCDMA version, the trend of contending for the time window is obvious.
"China Telecom has determined the next step in the development of ideas, clearly put forward a new transformation strategy, we call it a 'new three-step'." At the "China Telecom CDMA Industry Chain Summit Forum" held recently, China Telecom Group General Manager Wang Xiaochu said.
In fact, this is the second major transformation of China Telecom under the leadership of Wang Xiaochu. In 2005, Wang Xiaochu, who was transferred from China Mobile to China Telecom, faced the plight of China Telecom’s fixed-line phone market, “increasing subscribers but not increasing revenues†and even “increasing revenuesâ€, and for the first time proposed China Telecom. It should be transformed from "basic network operator" to "integrated information service provider."
In this new round of transformation, 3G and terminal services will play a crucial role in the success of the transition. At the meeting, Wang Xiaochu first disclosed China Telecom’s “Twelfth Five-Year Planâ€: It plans to add more than 30 million mobile users each year. By 2014, the total number of users will reach 200 million. In the next 3 years, China Telecom will add new users. More than 70% of mobile phones will be smart phones.
Data business will focus on revenue
Although the three major operators are aware of the importance of data services, the growth of new users and traffic volume of China Unicom and China Mobile is still the most important driving force for stimulating revenue growth. Even for China Mobile, the data service revenue accounted for only 31.2%.
"For China Telecom, the voice service will no longer be the focus of revenue. In the future, we must use data services as the core and establish a more reasonable business model." Wang Xiaochu said.
The reason Wang Xiaochu was able to have this kind of emboldening was because after the first round of transformation, the income structure of China Telecom has changed a lot.
According to data disclosed by the company's 2011 work conference, in 2010, the proportion of non-voice revenue of China Telecom has increased from 26% in 2005 to 56.8%, and mobile, cable broadband, value-added and comprehensive information services have maintained a growth rate of more than double digits. Revenue from fixed-line voice services fell from 70% in 2005 to 29%.
Wang Xiaochu said that the "new three-step" strategy includes that China Telecom is not willing to play only a pipeline for the growth of various new businesses, but should realize the intelligence of the pipeline.
This includes the establishment of a comprehensive platform that becomes the provider of the integrated platform. Specifically, with the advent of the mobile Internet, various new technologies have appeared, such as new payment methods and new geographic location services. China Telecom hopes to establish a comprehensive platform for all these new technologies and new models.
Second, vigorously develop content applications. However, Wang Xiaochu emphasized that China Telecom should only appear as a "participant" in this process, and a large number of value-added services should cooperate extensively with SP and CP.
“The development of the mobile Internet has brought opportunities to the entire industry. The 3G services of the global telecommunications industry have entered a period of rapid development. Although China is slower than Western countries, China has entered a period of rapid growth since the first quarter of this year. This is the early stage of 3G explosive growth.†Wang Xiaochu said that 3G has become the main driver of China Telecom’s revenue growth.
Under this idea, three months ago, China Telecom had just established an innovation business unit and began to establish eight value-added service bases nationwide. According to Xiao Jinxue, general manager of the Innovation Business Department, telecommunications did not give the department a revenue target but only a request. This department will use 3 years to 2013 to build the user's mobile Internet experience.
Not ample "time window"
On June 20, the three major operators announced the number of new 3G users. As of May, China Mobile added 2.62 million new subscribers, China Unicom added 1.138 million subscribers, and China Telecom added 1.83 million subscribers. Competition enters a stalemate.
“China Telecom, as a traditional fixed network operator, has an obvious and urgent opportunity in the 3G era.†Wang Xiaochu said that now is the era of smart phones, which operator chooses which operator, the premise is the terminal, then the price, and finally it is Operators, which prompted China Telecom to make changes.
Faced with the previous weaknesses of the CDMA industry chain, China Telecom further increased the scale of centralized mining and expanded the proportion of socialized channels. At the summit forum, it threw out 40 million terminal procurement figures, and the total amount will reach 40 billion yuan. China Telecom estimates that terminal demand will be around 60 million units throughout the year.
In order to accelerate the development of terminals, China Telecom will further increase its subsidies for smart terminals this year, and the amount of subsidies will increase to 42%. However, the time left for mobile phone manufacturers is still urgent.
"This time, Chairman Wang Xuehong came over and gave us instructions that we should be bolder and we must move faster, especially in the Chinese market." Ren Weiguang, president of HTC China, told the reporter that HTC is currently in the world. The smartphone market accounts for about 10% of the market, but the market share of smartphones in China is less than 3%. "There is too much difference with the global level. The Chinese market is so big that it depends on whether you have the ability to take it down," he said.
In order to accelerate development in a short period of time, Ren Weiguang said that China is in the stage of rapid upgrading of smart phones. “Consumers don’t need to form their own judgments for a long time. Which brands have advantages in the smart phone market? The time window will not exceed one year, and it will be very difficult even if you take it one year later."
Motorola's performance is even more pronounced. For it to bottom out, China has become the most important market in addition to the US market, and it can be described as a "rescue." The XT800 customized by Motorola and Telecom has become one of the most profitable machines in China.
The market left Motorola's window is also very urgent. According to Apple’s CDMA version of the iPhone plan, China Telecom’s introduction of the iPhone at the end of this year is very likely, and this will have a direct impact on Motorola’s current star products.
Therefore, it is easy to understand that although Motorola's star product milestone generation and second generation products are all first released in North America and then introduced into China, and all are WCDMA standard, Motorola's global milestones have been debuted in China at the CDMA industry chain conference. Products, not only earlier than the North American market, but also earlier than the WCDMA version, the trend of contending for the time window is obvious.
Wecome Group Imp. & Exp. Co., Ltd. , http://www.china-vacuum-interrupter.com