Chapter 25: A Great Conspiracy

"Du Qiu, today is really a long knowledge, Wan Pingguo and I are specialized in Internet access services, but it is not as good as you, who is proficient in software, I am really ashamed. Pen @ fun @ pavilion wWw. biqUgE怂 ļ½‰ļ½Žļ½†ļ½ā€

"Sister Zhang has won the award, I have more miscellaneous interests, and I buy and sell the terms I see on the Internet, which is proficient. ā€

"Come, come, don't talk patronizingly, let's drink some wine together. ā€

After a few people drank a lively drink, Wan Pingguo came to his senses and asked: "Although the Internet speed in the United States is faster than that in China, the speed is limited, and it is also based on dial-up Internet access, ADSL is such a good technology, why didn't I see a company providing this service when I was studying at Stanford?"

"Because ADSL can handle both phone calls and Internet access with a single line. Du Qiu put the teacup and wine glass in front of him side by side, and said: "When dialing up the Internet, the line is busy, so those customers who often go online have to buy two lines to be enough, for telecom companies, two lines are more profitable than one line, so they have no motivation to promote this technology." ā€

Wan Pingguo suddenly shook his head and said with a smile: "He is worthy of being a capitalist profiteer, and he is really shrewd in his calculations." ā€

Liu Yunlai also smiled and said: "Although we are a socialist country, the telecommunications bureau and the American capitalists have a fight, and they are probably not interested in promoting this technology." ā€

"It's not difficult to motivate them to promote, just find a competitor to come out. ā€

"Although ADSL does not need to go through the telephone exchange, it still has to use telephone lines, and all telephone lines in China are from the telecommunications bureau, where to find competitors?"

"In addition to the telephone network, there is another network in the country. Du Qiu picked up the wine glass and teacup, touched it gently, and reminded: "Cable TV network." ā€

"Internet access on cable TV lines?"

"DSL technology is actually developed for video-on-demand, and telecom companies want to use this technology to grab the business of cable TV, but now the video-on-demand business is not mature, so it is refrigerated. Du Qiu put the wine glass aside, held the teacup and said: "Cable TV companies actually want to rob the business of telecommunications companies, in 1993, Time Warner of the United States experimented with a technology called cable-modem, not using telephone lines, but using cable TV coaxial cables to provide Internet access services to users, with a downlink rate of about 10Mbps, which is about the same as ADSL. ā€

Wan Pingguo, who studied engineering economics and public policy at Stanford University, was not familiar with communication technology, and was a little incredulous, so he took a sip of his wine glass and said: "I have read all the books in the United States in vain, and I have never heard of this technology." ā€

"In the 70s, in order to protect the nascent cable television industry, the United States banned the telecommunications companies that were in a monopoly position at the time to operate cable television services, so that the cable television industry could not operate telecommunications services, so this technology was not promoted, but since 1992, a number of telecommunications companies in the United States have filed lawsuits in federal courts on the grounds that the Federal Telecommunications Commission infringed on freedom of speech. Du Qiu poured the water from the teacup into the wine glass and said: "These lawsuits have been going on for several years, and the industry generally believes that there will be a result next year, when the barriers between the telecommunications industry and the cable TV industry will no longer exist, cross-operate, compete with each other, and in a few years, ADSL and cable-modem will definitely replace the current dial-up Internet." ā€

This is a historical fact, the promulgation of the "U.S. Telecommunications Act of 1996" completely broke the restrictions on the mixed operation of the U.S. information industry, allowing telephone, radio, cable television, In order to cope with the competition of cable television, telecom companies took out the DSL technology that had been refrigerated for many years, and engaged in a so-called universal ADSL standard, which reduced the theoretical rate from 8MPBS to 1.5Mbps, reducing the installation cost in order to reduce the technical complexity, and accelerated the promotion speed, which was rapidly popularized in the late 90s and early 21st century, and became synonymous with broadband networks.

However, in China, because the telecommunications department and the radio and television department have their own system, opposing each other, one obstructs the other party to engage in the Internet, and the other resists the other party to engage in media content, so there has been no introduction of cable-modem technology, so that ADSL is dominant, until around 2006, the radio and television departments around the country secretly engaged in broadband access services, until Du Qiu crossed in 2016 before getting the telecommunications operation license, but at that time China Telecom has been split several times, and there is no shortage of competition.

"Du Qiu, you are just like Ding Jian of AsiaInfo, you are both geniuses, and you even know about the legal proceedings in the United States. Wan Pingguo admired Du Qiu's profundity and gossiped: "According to Lao Tian, when he founded AsiaInfo, because he had no money to hire a lawyer, Ding Jian spent a month reading the relevant law books, and then negotiated in person, which is more effective than a lawyer. ā€

"I'm just hearsay gossip, how can I compare with those professional knowledge. ā€

Sun Shaojie felt that this was a good news topic, and asked with interest: "Du Qiu, which technology do you think is better?"

"Whether it's using a telephone line or a coaxial cable, it's just a transitional technology that will definitely be replaced by fiber optics eventually. Du Qiu used chopsticks to make a bridge between the wine cup and the teacup, and said: "The integration of telephone, television and telecommunications is the future trend, but the cost of fiber to the home is too high, and the development is relatively slow, so I think in the next ten years, these two technologies will be very popular, and will continue to improve with demand, so it mainly depends on the strength of the operator and the needs of customers, and there is no difference between superior and inferior." ā€

Zhang Shuxin looked at the wine glass, then at the teacup, and then asked Liu Yunlai: "Reporter Liu, you are well-informed, do you know if the radio and television system has any plans to do Internet business?"

"Even those of you who specialize in the Internet don't know what cable-modem technology is, and those masters in the radio and television system don't know even more. Liu Yunlai was also very interested in what Du Qiu said, looked at the wine glass with tea and asked, "Does this cable-modem also need special equipment to operate?"

"Cable TV is point-to-point broadcasting, so the traditional coaxial cable is one-way, and the information can only go down, not up, while the Internet information is two-way, so it also needs to be transformed, but like ADSL, the cost of transformation is much lower than laying optical fiber. Du Qiu picked up the spoon, held it in his hand and said: "Telecom is Wei State, Radio and Television is Wu State, and our small private companies are Liu Bei, if you want to get a piece of the pie from the Internet industry, you can only pull one by one, otherwise you won't be able to live." ā€

Wan Pingguo heard the sound of the strings, wiped his hands with a towel, and asked, "Snapdragon is also interested in operating Internet value-added business?"

"Snapdragon is a browser, and the more netizens there are, the more profitable the browser will be, but with such a slow and leisurely attitude of the telecommunications bureau, the year of the monkey can make more domestic netizens. At this time, Du Qiu also picked up a towel to wipe his hands and said: "Academician Hou of the Chinese Academy of Sciences often tells me that if a donkey is not obedient, it will either tempt it with a carrot or scare it with a whip. ā€

Zhang Shuxin smiled and asked, "What kind of temptation and scare method?"

"I remember that last year, the Ministry of Electronics Industry, the Ministry of Electric Power Industry, the Ministry of Railways, the State Economic and Trade Commission and other ten departments jointly established a telecommunications company called China Unicom, is there such a thing?"

"There is such a thing, it was established in July last year, but they have no money and no one. Liu Yunlai pointed to the ceiling with his index finger, made a suggestive gesture, and said: "The bigwigs of the Ministry of Posts and Telecommunications and the State Council don't like Unicom, but they were only established under the pressure of politics and marketization, and they don't give a penny of the financial budget, so they don't have to raise money by themselves, so it's been established for almost a year, and they haven't made any reputation, and they want to engage in mobile phone business, but they haven't heard that they want to do Internet business." ā€

"China Unicom has a license to operate telephone and Internet value-added services, and although it does not have a national communication network, it has the communication network of the Ministry of Railways and the Ministry of Electric Power that can be used. Du Qiu pointed to the two leftovers in front of him, and said: "Although the coverage of these two networks is very small, it is better than nothing, Unicom is now very short of money, and branches around the country have to rely on their own fundraising, so I plan to go to the United States this time to fool a sum of money back, cooperate with the Unicom branch of Cloud City, engage in Internet access services with great fanfare, shape it into a competitor, scare the telecommunications bureau, and force them to reduce prices." ā€

"Fooling the Americans?"

"China's telecommunications market is very huge, and it is developing very rapidly, many enterprises and capital in the United States are coveted, but the national policy does not allow foreign capital to enter the telecommunications industry, so you can only do it outside in a hurry. Du Qiu searched for memory information in his mind, and then continued: " Foreigners are very rich, Unicom is very short of money, we can be a matchmaker, find an American company, such as AT-T, let them and Snapdragon set up a joint venture company, this company takes me as a legal person, and I will go to the joint venture with Unicom in Cloud City, in this way, AT-T indirectly invests in China's telecommunications industry, and can get dividends in the future, Unicom gets start-up capital, and can set up its own network, and Snapdragon has entered the Internet industry, which can be described as a win-win situation. ā€

Wan Pingguo was amazed and thought it was a good idea, Liu Yunlai had some doubts about this, and said: "The state should not allow this kind of curve investment, right?"

In April, Wu Jichuan, the minister of posts and telecommunications, told foreign investors at the International Telecommunications Industry Conference that China was experimenting with a legal framework that would allow them to get a return on their investment in China's telecommunications business, but without selling their equity. Du Qiu is eyeing the telecommunications industry, so he is naturally prepared and said confidently: "I think the legal structure he is talking about is probably this kind of curve investment." ā€

Du Qiu's keen sense of smell, broad vision and meticulous mind made several people present speechless, although they were about to disperse, but no one was willing to leave, after a moment of silence, Sun Shaojie broke the cold field and said with a smile: "This is just a scare, what about temptation?"

"It's hard to say the temptation right now, but it should be clear in a few months. (To be continued.) )