Compared with Wang Xiaochu, who frequently made headlines, China Mobile Chairman Shang Bing seems to be too low-key. After the three major operators changed their coaches at the end of August 2015, Wang Xiaochu, who is in China Unicom, made a frequent appearance and launched a “package cooperation†plan with China Telecom, hoping to compete with telecom and China Unicom in the field of base stations, terminals and networks. Move to reverse the decline of 4G business. However, Shang Bing, who moved from the vice minister of the Ministry of Industry and Information to the chairman of China Mobile, never said anything.
On December 15, 2015, Shang Bing finally broke the silence. At the China Mobile Global Partner Conference, Shang Bing announced China Mobile’s new development strategy – the Internet of Everything. It should be pointed out that this is not simply the Internet of Things. Under the leadership of the “Internet of Everything†strategy, China Mobile’s basic business dimensions are all improving.
Among them, the most radical part is the terminal strategy. According to Sha Yuejia, vice president of China Mobile, in 2016, China Mobile will invest more than 100 billion yuan in terminal subsidies such as mobile phone subsidies, discounts, and channel remuneration.
In the middle of 2014, the SASAC had asked the three major operators to reduce marketing costs, and operators once severely cut terminal subsidies. Today, China Mobile has launched a huge terminal subsidy far beyond the past, with the aim of achieving the goal of “selling 330 million 4G terminals in 2016†in conjunction with all mobile phone supply chains. China Mobile predicts that this target will account for 66% of the total sales of 4G mobile phones in China in 2016, which means that the combined sales of China Telecom and China Unicom's 4G terminals is only half of the mobile.
Perhaps, China Mobile’s ambitions are not limited to this. On December 14, China Mobile jointly exhibited, China Qualcomm, MTK three chip manufacturers and Wentai Communications, Shenzhen Huiwei, Shanghai Huaqin and other 19 ODMs signed the "China Mobile VoLTE & CA Public Edition Project". "Two years ago, China Mobile's cooperation with these vendors to kill the 3G mobile phone threshold from 1,000 yuan to less than 500 yuan is a miracle." A person in charge of a chip manufacturer revealed, "This year, they will make a miracle again. China Mobile The plan is to kill the price of the VoLTE terminal directly from 1,500 yuan to 399 yuan." China Mobile's management strategy for the terminal is also fully tilted toward these low-end mobile phones, for example, "allow 3 yuan VoLTE mobile phone below 500 yuan to enter the library", Previously, China Mobile's minimum requirements for terminals were 5 models.
It should be pointed out that in the terminal plan recently announced by China Unicom and China Telecom, the terminal price is much higher than that of China Mobile. This means that China Mobile can quickly migrate a large number of low-end 2G and 3G users to 4G networks.
Up to now, China Mobile has 260 million 4G subscribers and has become the world's largest 4G operator. However, its 2G and 3G users are still as high as 550 million, and most of them are 2G users who use functional machines. China Mobile hopes to accelerate user migration through a radical terminal strategy to achieve more than 500 million 4G subscribers in 2016.
As a result, in 2016, China Mobile's 2G and 3G users were only about 300 million. In accordance with established practice, China Mobile's terminal strategy for 2017 will be further developed on the basis of 2016. At that time, China Mobile is likely to complete the migration of most 2G and 3G users.
"At the end of 2017, most of China Mobile's users have 4G terminals that can support VoLTE services. Voice services may be completely free." A telecom industry analyst speculated that "Telecom and China Unicom will still have a large number of voice services. There is no way to deal with the free competition of voice services."
In addition, by the end of 2017, China Mobile, which has completed most of the 2G user migration, can fully implement the “2G quit network†project, and the 900M and 1800M high-quality spectrum resources can be reused. Similar to mobile, US carriers AT&T and Verizon are also planning to complete 2G retreat work in 2017 and 2018 respectively.
China Mobile not only suppressed two competitors in the competition of basic business, but also led the development of new business. According to Shang Bing, China Mobile Internet has more than 6,000 partners, and its platform brings together 100,000 developers and 1.77 million applications. Among them, China Mobile's new media business, the company's platform, has 25 partners with revenues of over 100 million, 11 digital content distribution channels with revenues of over 100 million, and 65 star products with revenues exceeding 10 million, and the newly established China Mobile Internet Corporation It also has 43.8 million monthly active users.
China Mobile's layout and investment in basic business and new business has clearly dominated Telecom and China Unicom, but this kind of competition will inevitably affect China Mobile's revenue and profits. Under such circumstances, it is still unclear whether China Mobile will “willing to earn†the annual profits of 100 billion yuan.
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