China Mobile will eventually obtain fixed network licenses and telecommunications links or be compensated

IT Business News Network learned from industry sources that China Mobile has no suspense in securing a fixed network license. According to industry sources, "China Mobile has obtained fixed-line direct operation licenses, and the Ministry has already discussed it. It is basically clear that fixed-line operations will be released to the mobile industry, but when it is announced, it should also wait for the right timing."

China Mobile strives for a fixed network license

In 2008, telecom was restructured and the three operators gradually transformed themselves into full-service operators. China Telecom obtained the C network operating license, and China Unicom merged with the original China Netcom to become a full-fledged operator in the true sense. The merger of China Mobile and China Railcom, the latter's weakness in fixed-line resources, did not help China Mobile to make big progress in the fixed-line business, because mobile can only operate fixed-line services based on TD-SCDMA according to the license rights. The other fixed network business can only be operated by Railcom.

IT Business News reporter learned that as early as 2011, after the National Development and Reform Commission investigated the anti-monopoly of China Telecom and China Unicom, China Mobile hopes to obtain a fixed network license directly from its own, instead of owning a license through its subsidiary. China Mobile most hopes to obtain fixed-line broadband operating rights.

At the China Mobile Shareholders' General Meeting held in mid-May of this year, China Mobile chairman Ruan Guohua announced that he hopes to obtain a full-service license including fixed network operation rights. He believes that in the past, China Mobile’s market share was too high. The implementation of asymmetric regulation has failed to obtain a fixed network license. With years of transition, it is hoped that the regulatory authorities can cancel asymmetric controls. Subsequently, it was reported that China Mobile had submitted information to the Ministry of Industry and Information Technology and hoped that the Ministry of Industry and Information Technology could cancel the "Document No. 686" that restricted the scope of China Mobile's business and obtain a fixed network operating license.

Competitors want to maintain status quo

China Mobile’s embarrassment for fixed-line services has also been opposed by its competitors.

Wang Xiaochu, chairman of China Telecom, said that he hopes the domestic fixed-line market can maintain the status quo. He believes that China Telecom has been operating fixed-line and broadband services for many years, and no further investment in infrastructure is required. If competitors enter the field of fixed-line and broadband, it is more difficult than China Telecom to enter the mobile sector.

At the same time, he also pointed out that China Mobile has already carried out its required services in many regions. In the domestic communications market, the market share of China Mobile has reached more than 50%, which is much higher than the international monopoly rate of 42%.

Possible future compensation for Telecom Unicom

It has been more than three months since the licensing decision was made. The Ministry of Industry and Information Technology has not released this news yet. Industry insiders said that the move to get a fixed-line license should be no suspense. However, based on the status quo of a mobile unilateral player, the Ministry is considering giving telecommunications, Unicom's compensation rules, "For example, some preliminary strategies for inter-network settlement fees, quality of interconnection and interoperability, and vicious competition in the broadband market, especially the settlement fees for telecom Unicom and other operators, will certainly drop, but how to reduce , we also need more details to discuss."

The strengths of the three major operators are far apart. At present, there is a general concern in the industry that, after earning fixed-line licenses, it will use huge price advantages in a short period of time to provoke a “reel-wrenching rain” in the broadband market, so that optical cables can be cut. The number of vicious competition incidents such as the whole military exercise increased. It is also reported that the China Radio and Television Network Company, which will be established this year, will get a firm license after it is listed. By then, Telecom, Mobile, China Unicom and China Guangdong will stage a "Four Nations War" in the broadband market.