China Mobile revised the rules of the game closer to the operation mode of Japan and South Korea

Whether it is changing the competition from a single link to the competition of value chain; or the promotion of new business and new technology; or from the enhancement of existing network utilization, China Mobile made a transition to an integrated information service provider steps

Under normal circumstances, when the traditional network rental business can no longer achieve rapid growth or even start to loss, in order to maintain future development, telecom operators must strive to business transformation. But China Mobile is not for this reason. China Mobile released 2005 annual report of listed companies show that in 2005 the annual total profit of 53 billion 549 million yuan of China Mobile net profit in the bag, while the same year, China Unicom's net profit of $2 billion 840 million.

3G announced approaching, the industry believes that, whether it is to change the competition from a single link to the value chain competition; or the promotion of new business and new technology; or from the enhancement of existing network utilization, China Mobile made a transition to a comprehensive information service provider steps.

Value added service

Operators in Japan and South Korea mature business model among them, the operator customized 3G mobile phone is the mainstream. Whether China Mobile was founded in shift doesuit or China Unicom Unicom Huasheng Company established terminal two college belongs to the operators, are in full custom mode of exploration and leap.

In South Korea, not only the phone customization, in the mobile phone R & D, testing and post promotion, South Korean operators are all involved. Through the integration of KTF, CP shadow fade, as long as the production can be unified in accordance with the norms, followed by an increase in CP revenue." South Korea's second largest mobile operator KTF China chief representative Cui Junyong in the first financial daily interview, said.

At the beginning, China Mobile gradually mature in the mobile value-added services market, the Monternet business out from independent from the original data, bringing together a large number of SP and CP.

It is understood that the entire value-added services industry chain in Japan and South Korea, only CP, operators and users of the three main body, there is no SP, CP and the ratio between operators is roughly 80:20.

2005, China Mobile has officially to the SP and part of the province of the company below, recommend the trial of a new value-added service sharing mode, from the previous 15: 85 to 30: 70 and even 50: 50. Among them, 15 to 85 is divided into China Mobile responsible for billing and payment, SP is responsible for business promotion and customer service; 30: SP 70 is also responsible for China Mobile customer service; and if China Mobile is responsible for billing, customer service and business promotion services, SP offers only the content, both by 55.

China Mobile this move is to make the industry chain gradually closed to the current Japanese and Korean operators closed mode." Japan KDDI Co., Ltd. Beijing representative office said.

"As of May this year, Beijing mobile GSM and easyown cuts, with the arrival of 3G, with the continuous development of future data service, providing operators rely on a closed network business has been increasingly unlikely." The above said.

3G standard suspense

From a strategic point of view, ahead of the market to seize the data business and other competitors and the need for the game, the second is to seize the commanding heights of technology." The chief expert of Telecommunications Research Institute Lu Zhenhong said.

Before the big changes in the China Telecom industry, China Mobile will be the first transition from GSM to WCDMA is recognized as the industry's results. China Mobile general manager Wang Jianzhou also said that after the issuance of 3G licenses, China Mobile will be the first in the developed coastal city and an important deployment of HSDPA network; and then gradually expands to the internal, 2G and 3G will co-exist for a long time in the network.

Gartner, a senior Telecom analyst believes that in China's 3G issue pending stage, the direct launch of the so-called 3.5G HSDPA, is a possible choice, HSDPA can make up for the short board on the 3G business data.

However, the operator's network selection should also take into account other factors. In February 15, 2006, at the 3GSM conference, Wang Jianzhou expressed China Mobile wants WCDMA license desire, the SASAC and the State Council think-tank who have proposed the "China Mobile is the best choice for construction of the TD-SCDMA view.