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The franchise of telephone services in Hong Kong is mainly vested in two companies, namely the Hong Kong Telephone Company, which operates local telephone services, and the Tai Tung Telegraph Company, which operates international long distance calls. {We don't write novels, we're just online text porters - we love the Internet......

After Margaret Thatcher came to power and began to fully implement the privatization reform of state-owned enterprises, the Great Eastern Telegraph Office, which was mainly located in the Far East rather than the British mainland, encountered less resistance to domestic reform and became the first batch of companies to complete privatization reform.

After privatization, the Daito Telegraph Office immediately began to shrink its front and cut costs. In addition to relying on franchises to continue to monopolize the most lucrative international long-distance business, Cable & Cable has a very conservative business strategy in Hong Kong.

On the contrary, because the local telephone service requires large-scale investment in local infrastructure, and the billing price is much lower than that of international long-distance calls, the profit margin of the Hong Kong telephone company is not as good as that of Dadong Telegraph Company, which has forced it to start actively entering.

As early as 1981, the Hong Kong telephone company began to invest heavily in laying out the optical fiber backbone network in Hong Kong. This laid a good foundation for Li Xuan to promote the development of the Internet in Hong Kong after taking over the Hong Kong call company.

At the beginning, Li Xuan took advantage of Hongkong Land's high debts and capital turnover difficulties due to the collapse of Hong Kong's real estate industry in '82, and successfully acquired 35% of the equity of Hong Kong Telephone Company from Hongkong Land, thus successfully controlling this monopoly.

After Li Xuan took over the Hong Kong telephone company, in addition to actively promoting Internet services, he did not relax in mobile communications, and applied for the first mobile communication license in Hong Kong as early as 1983. At that time, the Oriental Research Institute had just begun the research and development of mobile communication technology, and at the request of Li Xuan, it directly skipped the first generation of analog cellular communication and directly tackled digital cellular communication.

Therefore, the Hong Kong telephone company originally used the Nordic NMT system. It is also the world's first first-generation cellular communication network. NMT is the abbreviation of Nordic Mobile Communications Corporation, at a time when the Nordic countries had established a de facto free trade common area, and people could cross the border without having to use a passport. And in order to achieve faster and easier information communication. A fully automated transnational cellular mobile communication system has become urgent.

Ericsson is one of the key players in the development of NMT systems. This also laid the foundation for Ericsson's strong influence in the field of mobile communication infrastructure in the following decades. The NMT system was first put into operation in Sweden and Norway in 1981, and was networked in Denmark and Finland the following year.

In addition to the Nordic NMT system, many other incompatible standards have been developed in European countries. For example, the UK's TACS, West Germany's C-450, France's 2000 and Italy's RTMI.

The mobile phone in the user's hand could not be used on other standard networks, and the specific use of this mobile phone caused great inconvenience, so the European Administrative Conference on Posts and Telecommunications (CEPT) later adopted a unified standard for the whole of Europe - GSM when promoting digital cellular technology.

"Li Sheng. We have erected a number of signal towers across the territory to ensure that every corner of Hong Kong, Kowloon and the New Territories can receive digital mobile phone signals reliably, except for remote outlying islands. Due to policy reasons, it is difficult for us to carry out mobile communication services in the mainland for the time being.

However, the connection between Shenzhen and Hong Kong is getting closer and closer, so in order to facilitate the actual use of customers, we have specially made some arrangements. A signal tower was erected in the east and west of the Shenzhen-Hong Kong boundary river, so that the land boundary within three kilometers to the north of the boundary river could also receive and make calls normally. Gu Xinping, president of Hong Kong Telecom, carefully introduced to his big boss.

HKT is a wholly-owned subsidiary of HKT and is responsible for the Internet and mobile communications services in Hong Kong. Today is the day when the CDMA network is officially put into trial operation, and mobile communication is in the future development of the Eastern Group. will occupy a pivotal position, Li Xuan naturally wants to personally come to cheer for everyone.

"The field of communications is a sensitive area for any country, especially for the mainland government. So we are in the marketing promotion in the future. Resolutely do not use gimmicks such as 'it can be used normally in the mainland' to advertise, otherwise it is likely to be self-defeating!"

Even after 30 years, the telecommunications field is still a state-owned monopoly, and a large part of this is related to the country's information security. Therefore, Li Xuan actually does not approve of engaging in this kind of small action in private, but it is not convenient for him to directly pour cold water now. It is better to wait until the relevant domestic departments discover this loophole in the future, and then communicate and solve it.

"Our NMT network users have exceeded 100,000, and these users are the key target groups for us to promote digital mobile phones in the future. However, the NMT network will continue to operate normally in the short term, and our digital mobile phones mainly rely on the advantages of lighter and smaller size, better call quality, etc., to attract users!" Gu Xinping continued.

"The tariff of this new digital mobile phone is compared to the old big brother. Is there a decline?" Li Xuan asked directly, this was the question he was most concerned about.

"Because of the construction of digital mobile information and communication networks. We had to start from scratch, and we spent a lot on infrastructure. So in order to recoup the investment. Our tariff pricing on digital phones couldn't be cheaper.

In contrast, the NMT network has been in operation for five years, and the marginal cost is decreasing as the number of users continues to increase, so in the short term, the tariff of analog Big Brother will be cheaper than that of digital mobile phones!" Gu Xinping immediately explained.

Li Xuan frowned, and quickly shook his head and said: "No, the tariff pricing must be modified! Our CDMA technology, compared with the current analog cellular technology, the biggest advantage is actually a huge leap in the number of users! The more users who use digital mobile phones, the smaller the marginal cost, which is the core competitiveness of our CDMA."

Therefore, in order to quickly increase the user growth rate of CDMA technology, the tariff of digital mobile phones must be lowered to a lower level, even if it is worth suffering a certain loss! Now that our digital cellular system has been built, then the NMT system has completed its mission!

There is no need for us to pursue the growth of NMT system users in the future. The user capacity of analog cellular is so small that the increase in subscribers will only force us to continue to spend huge sums of money to expand the capacity of our network communications. It's worth the cost!

Our next goal is not only to convince users of our NMT system to switch to the next generation of CDMA digital phones. I also want to grab the users on the TACS network of the Dadong Telegraph Bureau!" Li Xuan said with a smile.

After seeing the good results of the mobile communication services launched by the Hong Kong telephone company, Dadong Telegraph Office also applied for the second mobile communication business license in Hong Kong from the Hong Kong government in 1985. For this purpose, Daito Telegraph Office set up a subsidiary called Lianxun. It uses the UK's native TACS analog cellular technology.

It's just that Lianxun is far from being comparable to Hong Kong Telecom, a subsidiary of Hong Kong Telephone, in terms of infrastructure investment. With Unicom's TACS system, the signal can only cover the urban areas of Hong Kong and Kowloon, and even in the urban areas, its signal stability cannot catch up with the network of Hong Kong Telecom.

In addition, Hong Kong Telecom has a first-mover advantage, so in the market competition in the field of Hong Kong mobile communications, it has always been far ahead of Unicom, a subsidiary of Dadong Telegraph. HKT's mobile phone subscribers have exceeded 100,000, not including the 20,000 subscribers in the nearby Macau market. However, Unixun has not expanded its business to Macau, and even the number of users in Hong Kong is less than 20,000.

In accordance with the consistent strategy of the Hong Kong government, in the areas of public services such as telecommunications, electricity, water and gas. This is usually done with a franchise strategy. However, the British government in Hong Kong was, after all, a British colonial government, and it never represented the interests of the Chinese. When the Great Eastern Telegraph Office was applying for a mobile communications business license, the Hong Kong telephone company had been secretly blocking it, but it still failed to prevent the British from intervening.

It was said that on the other hand, it was the Dadong Telegraph Bureau that obtained the mobile communications business license first, so if Li Xuan's Hong Kong telephone company wanted to obtain a second license, it would probably be difficult to ascend to the sky, and the other party would always have a way to persuade the Hong Kong government to obtain the exclusive right to operate.

Since it was impossible to prevent the British from intervening, Li Xuan was ready to squeeze the Lianxun Company of the Dadong Telegraph Company out of the field of mobile communications through guò tough market competition. Due to the low carrying capacity of analog cellular technology networks, Big Brother's tariffs remain high. The average person simply can't afford to use a mobile phone. Therefore, although user growth is not busy, consumers' demand for mobile communication is far from being truly released.

Although Hong Kong Telecom has completely suppressed Lianxun, this is not enough for Li Xuan. Taking advantage of the fact that the Oriental Research Institute has completed the development of CDMA technology first. And the European GSM has not yet come out, and Hong Kong Telecom has the opportunity to completely crush Lianxun.

And if you want to trample competitors to death, the most effective way is to fight prices. With a much cheaper tariff level than Big Brother, it attracts all users who use Big Brother. You must know that most of the annual phone bills used by a big brother can already buy a new big brother.

Gu Xinping did not directly reply to his boss's request, but lowered his head and thought. He paused, and found that Li Xuan seemed to have been waiting for his reply, so he had to show a reluctant smile: "Li Sheng, what you said about the digital mobile phone tariff." I still need to organize a dedicated team to do a lot of research before I can give you a final answer!"

Li Xuan nodded. What he needs is for his executives to have the best analytical and thinking skills, not to become echo worms. So Gu Xinping didn't affirm his own construction. Instead, it made him look at each other a few more times.

"I know that the Internet and mobile communications business that HKT is responsible for are still in the stage of needing a large number of blood transfusions!

However, many issues must be considered in the long-term context of five, ten, or even twenty years. The result of short-sightedness is often to pick up sesame seeds and lose watermelons! I will give Han Peng a voice and ask him to directly inject capital into Hong Kong Telecom in the name of the group and acquire a part of the equity of Hong Kong Telecom!" Li Xuan said lightly.

This made Gu Xinping secretly breathe a sigh of relief, you must know that Hong Kong Telecom is the biggest gold-swallowing monster within HK Electric. In the past few years, the large-scale investment in the optical fiber backbone network has just come to an end, and now it is followed by the large-scale construction of digital mobile communication networks. As a result, Hong Kong Dialect, a company with very stable revenue, has not only not paid dividends for several consecutive years, but has also issued new shares on a large scale twice.

If it weren't for the halo of the big boss "God of Wealth Li", the stock price of Hong Kong Telephone Company would have been unable to support it a long time ago. Compared with several other thriving listed companies under the Oriental Group such as Jiahua and Asian Entertainment, the Hong Kong dialect is much inferior. As the person in charge of Hong Kong Telecom, the largest capital black hole in the company, Gu Xinping naturally bears a lot of doubts.

The acquisition of a part of the equity of Hong Kong Telecom by Oriental Group by way of direct capital increase can not only alleviate the financial pressure of Hong Kong Telecom and even the entire Hong Kong telephone company. More importantly, Li Xuan's move undoubtedly showed his support, which could greatly alleviate the huge pressure on Gu Xinping's body.

"Li Sheng, the first batch of digital mobile phones we launched this time have two models, silver gray and black! Next, I will open the world's first digital mobile phone for you, I don't know if you have any special requirements for the selection of good ones!" Gu Xinping motioned to a sweet saleswoman and took out the two small prototypes displayed in the window.

Of course, this small size is only compared to the big brothers that are like bricks on the market today. Compared with the smartphones that can be thin and light to only a few millimeters in thickness in later generations, the two mobile phones launched by the Oriental Research Institute are still bulky and old-fashioned.

"Which factory is responsible for producing these mobile phones?" asked Li Xuan curiously.

"Xingguang Electronics, the big brother we sold before, is also a product of Xingguang Electronics! However, the Oriental Research Institute intends to split the mobile communication business and set up a wholly-owned subsidiary, so Xingguang Electronics is only responsible for OEM this time!" Gu Xinping said.

The future of the mobile phone industry is huge, and it is indeed necessary for the Eastern Group to set up a special subsidiary to be responsible for development. It's just that the company that is spun off is mainly responsible for the design of mobile phone functions and other faces, and the research and development in the basic field will still be dominated by the Oriental Research Institute, and the Oriental Research Institute will also cooperate with foreign countries in the form of patent licensing!

(To be continued.) )