October 10th news, although this year has been reported that "China Mobile will get a fixed-line license", but until October, there is still no movement, and the industry reported that mainly China Unicom and China Telecom hope to reduce inter-network settlement fees This means that the battle between the two parties has escalated, and at the same time, one of the problems of inter-network settlement has surfaced again. It also shows that China Unicom and China Telecom are worried about the consequences of the inter-network settlement tariff reform a few years ago.
China Mobile has not been granted a fixed-line license
For fixed-line licenses, China Mobile has always wanted to obtain. China Mobile Chairman Xi Guohua once said that even if a fixed-line license is not available, China Mobile will build a public Internet because more and more data transmissions between base stations and base stations require wired broadband. This shows China Mobile's determination to obtain a fixed-line license.
Xi Guohua even stated that he will not use fixed-line licenses to engage in price wars. He said that China Mobile's strategy is to do something, to do something wrong, pay attention to the input-output ratio, too low profits will not do it. "Now China Mobile's profit is still very profitable, and the fixed network's profit is very thin. I think we won't compete vigorously even if we get a license, resulting in a vicious price war."
However, even so, Xi Guohua's above speech has not seen China Mobile obtain a fixed-line license in the past few months. It is reported that this is mainly because China Unicom and China Telecom hope that China Mobile will reduce the inter-network settlement fee between mobile phones, but neither China Telecom nor China Unicom has yet responded to this.
Telecom Unicom believes that inter-network settlement tariffs are unfavorable
In fact, just as China Mobile cares about fixed network licenses, China Telecom and China Unicom are very concerned about the issue of network settlement fees.
There has always been a saying in the industry that "big networks eat small networks", meaning that operators with many users have a clear competitive advantage over operators with few users. One of these is that small operators should give large Operators pay high inter-network settlement fees. Taking China Unicom and China Telecom as examples, China Mobile will pay several billion yuan a year.
In recent years, some reforms of inter-network settlement fees have been detrimental to China Unicom and China Telecom. In 2009, the Ministry of Industry and Information Technology issued the "Notice on Adjusting the Settlement Standards of Fixed Local Telephone Network Business Sections". The inter-network settlement of operators' fixed-line telephones was adjusted from 0.15 yuan / minute to 0.06 yuan / minute. Network operators are favorable. In the south, it is good for China Unicom and mobile fixed-line services; in the north, it is good for telecommunications and mobile fixed-line services. And if China Mobile enters the fixed network, it will also benefit from this policy.
In addition, before the telecommunications reorganization in 2008, the mobile business and fixed-line business were operated independently by different operators; according to the previous regulations, mobile operators received zero revenue from calls from fixed-line operators. However, as of June 1, 2010, when a fixed user calls a local mobile user, the calling party's operating company shall pay a settlement fee of 0.001 yuan / minute to the called party's operating company. This is also detrimental to China Unicom and China Telecom.
This is equivalent to the fact that fixed-line operators no longer have "exemption rights" on the issue of inter-network settlement fees. At the time, it was estimated that the additional inter-network settlement fees would affect China Telecom and China Unicom's profit by about 1%.
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