The cumulative investment of rmb 20 billion, and the construction of the wlan hotspot (ap) in china, which was once regarded by china’s move as an important component of the wlan operation (wlan, gsm, td-scdma, td-lte), is being “married” by china, and the cost of network optimization has been drastically reduced, in addition to the cancellation of new investments。
It is a matter of concern that wang xiaochu, president of china telecommunications, stated during an interview with the author in nanjing last june that, as an important complement to the fdd-lte 4g network, china telecommunications is planning to increase its investment in and construction of wlan hot spots。
That is to say, outside the 4g network, china’s move and china’s telecommunications attitude towards wlan is in sharp opposite directions. How do we evaluate china’s 3g-era deployment strategy for moving wlan? Why does china’s telecommunications choose 4g to speed up the wlan layout? What will be the changes that will be made to the 4g-era operators’ competitive patterns?
Starting in mid-june, the author held numerous dialogues with the three main operators, the top of the industrial chain. The following is a clean-up of information:
Why did china move strategically abandon wlan?
1. Large inputs and low outputs. According to mobile internal data from china, a total of 4. 29 million wlan hot spots had been deployed nationwide by the end of 2013. Based on the cost of each ap deployment of approximately $4,000, the construction of wlan has cost china only $20 billion to move. At the same time, china's mobile wlan user arpu averaged less than $15 a month, “not to say rate of return, not even the cost of the network is good enough.” henan moved some of the employees in charge of the wlan project。
Impact 4g business development. In the 3g era, suffering from the ttd-scdma network, most of china's mobile 3g users were actually running over the edge's 2. 75g network, and most provinces had a 70 per cent idleness rate of td-scdma. In the absence of a choice, mobile china has invested heavily in wlan layouts in order to enhance the experience of the network and retain its users。
For china to move, however, it is a double-edged sword option. According to china's mobile 2013 financial report, its income from wireless internet operations increased by 58. 6 per cent, while low-cost wlan flows accounted for 73. 8 per cent, contributing less than 2. 6 per cent of income. With the advent of the 4g era, china moved to build the td-lte network, and if users remain accustomed to the wlan network, it will seriously affect china’s mobile 4g business development。
According to china’s mobile release data, by the end of april this year china had a mobile 4g terminal sales volume of 14 million, but 4g users actually had fewer than 4 million internet users and a conversion rate of less than 30 per cent. The reality requires a shift in china’s mobile approach to “tennets”。
3. Obtaining a solid net licence plate. China’s mobile development of the wlan network was largely at a competitive disadvantage under china’s “mobile + solid net”-coalition policy to connect china to china’s telecommunications. However, after china's move obtained a solid net licence, although its chairman, qinghua, stated that “no price war, no size, does not enter the household broadband market”, for local companies at the front line of the market, “back-to-back guns” were killed. In mobile provincial companies such as zhejiang and jiangsu, price wars at a one-third or lower price for telecommunications have yielded 40 per cent of the market share of stocks and 60 per cent of the additional share, with significant results。
4. China moves with different internal attitudes. In fact, in terms of the wlan strategy, the attitude of china's mobile top and provincial companies is not uniform. The chinese mobile president, li qianli, pushed wlan strategy, but there was no agreement at the top. At the provincial level, the differences are even more evident。
Of china's 4. 29 million wlan hot spots, shandong has more than 1 million, henan has nearly 400,000 and shanxi has 560,000. In other words, the three provinces are working on the wlan strategy, which has deployed more than 50 per cent of the country's 30 provincial companies. In november 2013, after yingqing yan took over as the general manager of shandong movement, shandong's mobility strategy changed rapidly and moved rapidly towards fixed broadband development。
5. Cancel wlan in kpi. China's mobile decade development, which assessed unique kpi indicators, had a significant impact on its business lines. Since 2014, wlan operations have been removed from china's mobile kip examination, which has resulted in a significant upgrading of the 4g network deployment, end sales and user development. In the absence of support from provincial companies, wlan's gradual weakness is inevitable in the face of the advantages of a solid network。
How to evaluate china’s mobile wlan layout strategy?
To be sure, in the 3g era, and in the context of the basic “mute fire” in the development of td-scdma 3g, china’s mobile li yi’s strategy of “tournal synergy” (wlan, gsm, td-scdma, td-lte) has been uncomplicated and has contributed to the retention of users and the enhancement of user network experience。
For consumers, access to mobile internet and smart phones in the country has been objectively facilitated through the use of large amounts of wlan added to the package, either over the length of the internet or 10-20 yuan/month wlan wireless broadband, and full access to low-cost wireless internet access. At the same time, the installation of fibre-optic cables during the construction of wlan has also accelerated the construction of the current 4g transmission and trunking networks。
In the 4g era, however, against the backdrop of china’s huge investment in moving 4gs, and especially its “run-and-run” link between china’s telecommunications and china, wlan, which is low in arpu, has become one of the “trusts” of china’s mobile 4g operations. From this perspective, it is a normal business strategy for china to move away from wlan’s new investments, to significantly reduce the cost of the network and even to terminate new user processing. At the same time, however, how to preserve user experiences and interests that remain under contract will be a real issue for china’s mobility to consider。
Why did chinese telecommunications increase wlan's input?
Why, then, did wang xiaochu say that he would do everything in his power to speed up the wlan input after the issuance of the fdd pilot network licence plates, and what would be the impact on the competitive landscape of domestic operators?
1 the deployment of the telecommunications fdd 4g network is limited. On 27 june this year, the ministry of industry and communications announced the issuance of the fdd pilot network licence plates for telecommunications, which were licensed by the combined td-lte/lte fdd network in 16 cities, including shanghai, xi'an, chengdu, hangzhou, wuhan, nanjing, zhinan, hoifa, shijia, haiguchi, zhengzhou, chongqing, shenzhen, nanchang, nanning and lanzhou. There is, however, a clear gap in relation to the 4g development goal for the deployment of 300 cities in china's telecommunications year。
The telecommunications 3g network is strongly complemented. During the 3g era, chinese telecommunications had achieved good reputation and user growth, based on the comparative advantage of cdma evdo vis-à-vis the td-scdma network and in combination with radio coverage. However, in the case of the 100 mbps td-lte 4g network in china's mobile wide area, and china's connection to the development of the hspa 42 mbps 3g network, its evdo rev a network has a down rate of 3. 1 mbps, which is essentially “pre-liberation” and the development of the wlan network will be a strong complement to china's telecommunications 3g network。
3. To cover urban hotspots. Whether 3g or 4g, in urban hotspots, it has proved impossible to satisfy the good experiences of users with bandwidth and coverage when used by large users. Wlan, on the other hand, is relatively low-cost, has flexible deployment modalities and can mitigate poor coverage of the 4g high frequency segment in the room。
4. Strengthening the 4g advantage. In the 3g era, chinese telecommunications companies were hit by low prices by local mobile rival wlan, and, in addition to 4g flows, the granting of a certain amount of wlan to users will be a means of remedying the 4g traffic shortage and increasing differential competition。
Taken together, china's movement in td-lte had the advantage of pre-empting 4g, and wlan was adjusted from “income” to “supplementation” in td-lte, meeting the real operating requirements of china's movement. Today, china's telecommunications development wlan is also a quick fix to re-route china's move of 3g. However, for china's movement, how to achieve 4gs, wlan and the “new synergies” of the grid, and how to harmonize the attitude and enforcement of top-level and provincial firms, in the context of the new competition pattern, will be important factors in shaping the future competition patterns of the three operators。
This post is part of our special coverage “fox search it”. Author: maoqiying (2008), cebu micro-intelligence public: one observation (guancha01)
