Chapter 256: 50 billion investment, China Mobile, China Unicom's Ma Wei battle
"My question is, if all of China, including some remote mountain villages, is covered with 2G networks, how much infrastructure and how much capital will be needed?" Ma Wei, sitting at the table, said lightly, Wang Liangan, president of China Mobile, and Fang Zhengde, president of China Unicom, asked.
As soon as he finished speaking, he saw Wang Liangan and Fang Zhengde, who were sitting in front of him, looking at each other for a moment! There was a hint of surprise in their eyes, "The whole of China is covered by 2G networks? Mr. Ma Wei, in terms of this amount of funds, I am afraid that it is very large!"
Wang Liangan and Fang Zhengde didn't know what Ma Wei wanted to negotiate when he came to China. Now hearing his question, the two of them instantly understood.
Ma Wei said that the 2G national coverage, the two of them have not considered it. But China is too big, and there are too many Tier 1 and Tier 2 cities. The seamless 2G coverage of the three major cities of Guangbei, Shanghai and Guangzhou will cost an average of 1.3 billion yuan!
According to the area of 6,340 square kilometers, the coverage radius of a signal tower is 500 meters (the urban population is large, and the coverage radius should not be too large). This means that about 3,000 2G signal towers need to be built to cover the entire magic capital seamlessly.
The cost of building signal towers, as well as computer room equipment, wires and optical cables, is at least 400,000 yuan.
2G coverage in a first-tier city costs 1.3 billion yuan. As of 2004, there were 4 municipalities, 283 prefecture-level cities, 374 county-level cities, and 1,636 counties (autonomous counties, banners, autonomous banners, special zones, and forest areas)
After calculating these expenses, without 50 billion funds, it will not be able to gnaw down at all. Even if there is 50 billion, when the time comes, the situation may be different from the estimate. After all, there is no telecommunications company in China that dares to say that it wants to cover the 2G network across the country!
"How much? Give me a number. Ma Wei also knows that this investment is huge, but for the future layout of the mobile phone industry, these investments are absolutely necessary. Moreover, this is closely related to people's livelihood and can improve people's daily life. It can be regarded as a great thing in Russia and at home.
"Approximate amount, because no one in our country has ever tried this kind of thing. In addition to the existing signal tower construction, coverage, so ...... The amount is at least 50 billion yuan!" Wang Liangan and Fang Zhengde can only give Ma Wei an estimate. This amount of money is much bigger than Ma Wei's investment in gas stations!
At present, the available liquidity in the Mawei bank card is 4.25 billion US dollars, equivalent to 35.275 billion yuan, which is much different from the estimated amount.
"Mr. Ma Wei, according to the mobile phone penetration rate in other advanced countries, as well as the popularization trend, the future of the communications industry, the profit is very large! China currently has a population of 1.1 billion, if even according to the 10% penetration rate, then at least 110 million people will use mobile phones in the future......"
If it can be realized, then it is very possible for the company to go public and even enter the world's top 500 enterprises!"
Seeing Ma Wei contemplating over there, Wang Liangan and Fang Zhengde patiently explained to him.
Since the Russian foreign guests talked about this topic, the two naturally did not miss the opportunity. 50 billion yuan is very huge for China Mobile, which has only been established for less than two years, and China Unicom, which has been established for less than six years.
They also know that once the national 2G signal coverage is built, the profits generated in the future will definitely make the two companies make a lot of money.
"I'll give you a call and ask!" Ma Wei does not have enough liquidity in his pocket, so he needs to mobilize some funds from the two listed companies.
Seeing Ma Wei say that he wanted to make a phone call, Wang Liangan, president of China Mobile, and Fang Zhengde, president of Unicom, couldn't help but glance at each other. From the eyes of the two, it is not difficult to find that they are a little worried about Ma Wei, can they come up with this huge amount of 50 billion yuan ......?
After all, this is dozens of times more expensive than the A380 airliner and Rolls-Royce Phantom!
Wang Liangan and Fang Zhengde are competitors in the business. But before, Ma Wei had made it clear that this cooperation requires at least two companies. That's why the two can sit together calmly, instead of holding each other back, making the smell of gunpowder on the field very strong......
"Mr. Fang, look at the foreign guest from Russia, will he invest this money? 50 billion yuan, which is equivalent to 6 billion US dollars!" Wang Liangan, president of China Mobile Company, asked Fang Zhengde, president of China Unicom, in a whisper after Ma Wei left his seat.
"I don't know, I hope he has money, the national 2G coverage, we Unicom at the beginning, it's not that we haven't thought about it. It's just that the two big cities of Shangyan and Shengjing alone cost a lot of money. The key 2G signals have not yet been fully covered. If it is estimated according to the company's development trend, it will take at least four or five years to cover about 75%......" Fang Zhengde said very directly.
Both companies are engaged in communication, and if you say something, you will know whether it is true or false as soon as you hear it. So Fang Zhengde is too lazy to deceive and talk nonsense. In that way, "being smart will be mistaken by being smart", and it will appear to be smart.
Due to Fang Zhengde's heart, Wang Liangan, the boss of China Mobile, also sighed and said, "Yes, it may not be covered in four or five years, and then maybe 3G networks will come out abroad! This is very backward......
In addition to the healthy competition in China, China Mobile and China Unicom should also consider the industry gap at home and abroad. Since the development of mobile phone signals from 1G to 2G, it is a sure thing to reach 3G. It's just that I don't know when the technology will be able to be developed and popularized.
In 2001, the domestic communications industry was still in the embryonic development stage. 2G technology, maybe easy to get. But mature 3G technology can't be done by building a few signal towers...... This is also the part of the two CEOs that worries.
However, just as the two were discussing in a whisper. I saw Ma Wei returning to his seat with a smile after making the call, "Mr. Fang, Mr. Wang, if I am ready to invest this 50 billion funds to build a 2G signal base station for you." How long will it take to ensure nationwide coverage?"
As soon as Ma Wei finished asking, he saw Wang Liangan and Fang Zhengde, who were sitting in front of him, and they couldn't help but glance at each other! This time, there was a little surprise in their eyes.
"Judging from Mr. Ma Wei's words, it seems that he has decided to invest this money?50 billion?" The eyes of the two CEOs revealed surprise. I didn't expect that the time of Ma Wei's phone call seemed to be all thought through?