Mobile Heart is also connected by China Unicom

Complete a mobile phone message, love is like mobile, heart is like China Unicom, ------- love is in arrears, love has been shut down, thank you very much!

Reward points: 0 - Question time 2007-6-3 08:06

Asker: Qingshui Mint 521 - Probation level one

Other answers* ** 1 item

Love is in arrears, love has stopped, fate is not in the service area

No answer when thinking, the line is busy even when thinking, feelings can no longer be recharged

Horizontal comment: My heart is like China Mobile, my love is like China Unicom Mobile or China Unicom!

Reward points: 0 - Solution time: 2007-3-1 15:45

For monopolies like this, their cost is to buy a satellite and just wait to collect users. Isn’t this really the case with money?

Asker: sd6145313 - Assistant Level 2

Best answer

This year, Tianjin China Unicom and Tianjin Mobile have launched fierce price competition. Tianjin Unicom has launched "Lucky Card" and "Let's Go Leisure Card", and Tianjin Mobile has launched "Global Connect Prepaid Membership Card" and "Global Connect New Card". Recently, Tianjin Unicom has launched a "free card" service, and the actual tariff is already lower than the cost of fixed telephone calls.

There are only two participants in a market, providing similar products with only some differences. This is called a duopoly in economics. The characteristic of duopoly is that both parties naturally form an agreement on pricing and jointly divide the market. However, this theory has been denied in the Chinese mobile communications market. China Mobile and China Unicom, the only two operators of China Mobile Communications, not only failed to reach an agreement on pricing, but also staged a war in many areas across the country. Another price war.

The fierce competition in the telecommunications market is what consumers are happy to see. Price competition has driven both parties to continuously lower prices, improve services, and effectively promote the process of canceling initial installation fees, network access fees, etc., allowing more consumers have enjoyed mobile communications services at cheaper prices, making an important contribution to my country becoming the world's largest mobile communications country in August this year. But this phenomenon does not make sense in economics - no matter what, market competition with only two participants is insufficient. Especially under the conditions that both companies are state-owned companies and there is no anti-monopoly law in our country, if China Mobile and China Unicom can reach an agreement on pricing, both parties can obtain the maximum monopoly benefits. So, what is the real reason why both parties gave up the most effective "marriage" action, so that the duopoly not only did not appear, but also turned into duopoly competition?

There is currently a huge profit margin in mobile communications operations - this is the "capital" that both sides have the courage to engage in price wars

Although the current calculation of telecommunications tariff costs is still There is no recognized model, but it is an indisputable fact that there is a huge net profit in current mobile communications operations. In the interim performance report released by China Mobile (Hong Kong) on ??August 15, its net income in the first half of the year reached 13.81 billion yuan, an increase of 58.4% over the same period last year.

As of June 30, China Unicom’s main business revenue reached 16.009 billion yuan, an increase of 52.5% over the same period last year, and its profit reached 2.19 billion yuan, an increase of 25.9% over the same period last year.

There is a big gap in market share between China Unicom and China Mobile. China Unicom wants to grow as quickly as possible, while China Mobile wants to consolidate the market too much - this is the psychological motivation for the price war between the two sides

1999 In 2016, a person from China Unicom lamented "How can 5% compete with 95%": Judging from the capacity or user share of China Unicom's pure mobile market at that time, it only accounted for 5% of the market, while China Mobile accounted for 95%. .

However, as of June 20 this year, the total number of China Unicom mobile phone users exceeded 30 million, reaching 30.3 million households, with a market share of 24%, but this still cannot satisfy China Unicom's "appetite". China Unicom plans to add more than 20 million new GSM network capacity this year, and the cumulative network scale will exceed 50 million households.

At the same time, the first phase of China Unicom's CDMA mobile communication network with a capacity of 15 million households has been fully launched, and a brand new "new time and space" CDMA brand is about to be launched...

China Unicom people are burdened with both It has the responsibility and obligation to break the telecom monopoly, and also has the self-esteem to become a large telecom company at least as good as China Mobile. Maybe it's like the famous saying that someone tampered with - "A company that doesn't want to be the boss is not a good company."

However, for China Mobile, this "big boss" that was split from China Telecom has an inherent sense of superiority. They have many enviable assets: they have China's most complete mobile communication network, With excellent staffing, it is the world's largest GSM operator. However, the development of China Unicom and more market participants in the future will inevitably shrink China Mobile's market share. China International Capital Corporation predicted in a report that China Mobile will only account for 27% of the new market share in 2011. Market competition Will be conducted among more than 5 operators.

However, if the position of "boss" is handed over to others, this is what every China Mobile employee does not want to see - they can bear the "lightness" of the policy's preferential treatment for China Unicom. But we must not bear the "heavy weight" of China Unicom that exceeds our own. Such differences made the two parties psychologically unwilling to reach an agreement to divide the market in the first place.

Both parties are state-owned enterprises. Although some of their assets are listed on the market, the traditional soft constraint mechanism makes both sides rarely begrudge in the battle for the market - this is a price war system. factor. China Mobile and China Unicom are "red-eyed" in order to grab users.

"Economic Daily" December 17, 2001

Answer: xuhongmyse - Qianzong Level 4 3-1 15:17

Asker's answer Comments:

I agree with his answer! ! ! no way! ! Thank you for being more attentive

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