Telecom China Unicom Raises 4G User Battle to Counterbalance China Mobile

In the 4G era, telecom operators will face a different battle for existing users. However, in the first half of the year, unbalanced development continues. The June operation data announced by the three major operators have justified this. In June, China Telecom’s mobile subscribers continued to decrease by 980,000, a cumulative total of 182.42 million; local fixed-line subscribers decreased by 1.38 million, a total of 149.22 million. In stark contrast to this, the number of 4G subscribers in China Mobile increased at an accelerating pace: 5.83 million in June, a total of 10 million, and a total of 13.943 million; China Mobile’s 3G subscribers added 2.229 million in June, accumulating a total of 2.38518 billion subscribers. . In June, China Unicom added 1.712 million mobile subscribers, cumulative users reached 2.9501 trillion yuan, and local telephone subscribers decreased by 776,000 subscribers and accumulated subscribers reached 86.071 million subscribers. It can be seen that the overall characteristics of the June operational data are as follows: China Mobile’s number of 4G subscribers has increased at a high rate, China Unicom’s mobile subscribers slowed down from last month, and China Telecom’s mobile subscribers are still decreasing.

It is also in this market context, after the launch of the FDD trial network, Telecom Unicom 4G busy "make up", build network, release number, release 4G terminal and tariff packages, etc., want to change the status quo. Although currently only 4G trial network, but for China Unicom and telecommunications, FDD trial network will enable it to have more market share and voice in the 4G field, thus changing the current China Mobile in 4G mobile phone and other mobile terminal business On the "a ride away" situation. Industry insiders also bluntly stated that as Telecom China Unicom speeds up 4G “counterattack” efforts, the competition among users of the three major operators will be even fiercer. In the future, convergence of network optimization and collaboration, market promotion after the drastic reduction in marketing expenses, and integration of industrial chains such as terminal channel applications will be the highlights of this battle.

Telecom Unicom 4G busy "make up"

The June operating data once again highlights the imbalanced competition among the three major operators. China Mobile is still on the road to 4G development and is “on the go”.

On the whole, the development of operators and users still presents "heavy fire and heavy fire." According to the data released by the three major operators in June, the number of 3G subscribers in China Mobile increased by 2.229 million in June. The number of 4G subscribers increased by 5.83 million in June. The total number of 4G subscribers exceeded 10 million in the first half of the year and the cumulative number reached 13.943 million. China Unicom's 3G subscribers Although there was no loss, the growth rate had dropped sharply from the previous year; China Telecom’s net mobile subscribers had a net decrease of 5.43 million in June. Specifically, China Mobile’s 4G users’ penetration rate is nearly 4 times that of 3G, while Unicom Telecom is a blank—relevant statistics show that the number of 4G users in China Mobile has exceeded 10 million in half a year, and 2 to 5 months of the official launch of 4G packages. China Mobile has added more than 8 million 4G subscribers. Five years ago, China Mobile spent 15 months to obtain the same number of 3G subscribers.

This kind of development status obviously made the power cordon rush, and the launch of the FDD test network will become an inflection point for the development of the market, giving Unicom an opportunity to “second start” and busy making up for 4G. On July 15th, China Telecom 16 City implemented the number 4G177 segment number, becoming the first operator to open 4G new segment sales. The 16 cities that opened the 4G 177 section of the telecommunications number include: Shanghai, Xi’an, Chengdu, Jinan, Hangzhou, Wuhan, Nanjing, Hefei, Shijiazhuang, Haikou, Zhengzhou, Chongqing, Shenzhen, Nanning, Nanchang and Lanzhou. Immediately afterwards, China Telecom organized the first 4-G terminal ordering meeting in a synchronized manner, and the nationwide on-site order quantity reached 1.5 million units. At the same time, China Telecom quickly launched its 4G innovative product "Love 4G" after the launch of the FDD trial network, becoming a milestone in its 4G process. China Telecom also stated that China Telecom Tianyi 4G network construction will invest more than RMB 40 billion in 2014, and will continue to invest in construction funds in the next two to three years to create a ubiquitous Tianyi 4G network that will provide users with high quality 4G experience.

It is China Unicom that set up the "collapse" with China Telecom on the same day. Unicom companies across the country also vie for 4G numbers, simultaneously adjusting related tariffs, and bringing along the industry chain to accelerate the speed of 4G new machines entering the market. According to netizens, China Unicom has started to work on FDD for 4G terminals. By the end of July, most mainstream models will support FDD.

Market is expected to tend to "partly equilibrium"

From the current situation of feedback from various regions, it can be seen that users have high enthusiasm for early adopters of 4G. This also indicates that the three major operators are bound to focus on the development of 4G users, and the market landscape may change.

First, the 4G development phase has been eased, and the number of user options has increased. According to the analysis, for Telecom and China Unicom, the launch of the FDD trial network will allow it to have more market speaking power in the 4G field. The three major operators will return to the equal starting line in the first 16 cities opened by China Unicom to change the current China Mobile. In the 4G business "a ride away" situation. It can be foreseen that with the start of LTE hybrid testing, the addition of more cities, and the issuance of future FDD-LTE licenses, as a continuous good, it will significantly accelerate the pace of 4G commercial use in China. As Shi Wei, Director of the Industrial Division of the Institute of Economic System and Management of the National Development and Reform Commission, said, FDD's technology and industry chain are more mature. After China Telecom and China Unicom are approved for a hybrid networking experiment, they are expected to shrink in the shortest possible time. The gap in 4G will ease the new imbalance formed after the issuance of TD-LTE licenses and provide users with more 4G options.

Second, the advantage of China Mobile's 4G war time window is no longer. In the period of more than half a year after the licensing of TD-LTE, under the background of a thriving competition environment, rapid network layout, and frequent deployment of terminal strategies, there is a certain gap between the development of China Mobile 4G users and the target. According to the goal of 50 million 4G users proposed by China Mobile President Li Yue at the Mobile Developer Conference at the end of 2013, the cumulative number of 4G subscribers that have accumulated at 13.943 million has only completed nearly one-third of the annual target, and the time has passed. More than six months. Under such circumstances, the National Tower Company was established on July 11 and it will have a certain influence on China Mobile's most abundant network construction advantages. With the speeding up of 4G counterattack by China Unicom, the battle for users of the next three major operators will become more intense. For China Mobile, the "one-man show" with no sidelines may not be so smooth.

The 4G competition of operators focuses on cultivating their own ecosystems

For 4G, industry insiders have commented that “the telecommunications giants invariably chose to lay out in advance. These veterans have witnessed too many cases of 'policy defeat mode', thereby more trusting capital and speed, facing the evolution and upgrading of the network, First of all, run up and say.” From the current point of view, the three major operators 4G full-scale campaign is still unable to really open, but China Unicom Telecom 16 cities began to sign at least mark the 4G local "counterattack" started.

Industry insiders pointed out that “competitive environments faced by operators are no longer comparable. The competition among operators and the competition between operators and Internet companies have already shifted to the industrial chain level.” It is precisely this recognition that operators Has begun to exert force, integrate resources, and focus on cultivating its own ecosystem. It is particularly important to point out that at the beginning of 4G commercialization, the promotion of user switching to the Internet has become the focus of competition for operators. In this regard, operators have come to the same conclusion: China Mobile has actively promoted its own 2G users to switch networks. It is a general trend for 2G users to upgrade to 3G or 4G as soon as possible; Telecom Unicom intends to jointly develop customers through virtual operators, just as China Unicom requires both virtual operators. Paying margins to avoid virtual operators misrepresenting the expected number of users, and rewarding the development of more than expected virtual operators. Conversely, these have also become one of the variables that affect the market structure of telecommunications operations.

The 4G hybrid network is beginning to have sharp corners and the front road is still long. It can be predicted that after the launch of the FDD trial network, the Chinese 4G market will gradually return to equilibrium, and moderate competition will increase the innovation capability and development vitality of the 4G industry. In the final analysis, the focus of the 4G competition is the cultivation of the operator's own ecosystem. Network optimization coverage and collaboration, market promotion after radical reduction of marketing expenses, and convergence of industrial chains such as terminal channel applications will be the strategic focus of telecom operators in the future.