In a country as large as China with a population of 1.3 billion, it is obviously not good if there are only two communication companies. From a company's perspective, any company always has an economic scale. Excessive expansion of the company will lead to bloated management levels, lagging decision-making, and the inability to get closer to the market. Excessive monopoly will produce many phenomena that are detrimental to citizens (users).

In the early 1910s, the development of mobile phones lagged behind. The cost of installing a landline phone was more than 5,000 yuan, and there were still queues to install it. The call charges and landline charges were all astonishingly high compared with today (if you consider Price inflation index, even more so). This is certainly related to the development of the communications industry, but more importantly, the telecommunications industry is too monopolized and concentrated, resulting in unsatisfied effective market demand.

With the development of the mobile industry, fixed-line operators have to change their strategies, reduce costs, and improve service quality. Currently, it is indeed much cheaper and more convenient to handle fixed-line services than before.

In the same way, the emergence of China Unicom has also put competition pressure on China Mobile, forcing it to improve services, reduce costs, and improve its network.

Although they are all state-owned holding companies, there is still a competitive relationship between them. This is not only the need for the development of the market economy, but also the birth of national demand. Only if companies are allowed to enter the communications business privately will there be real competition in China's telecommunications industry.

Competition means comparing price and service. This is what consumers are most concerned about.