Chapter 726 China Enters the GSM Era

After the telecom industry conference in Beijing, basically, both the government level, as well as the experts and companies level, were persuaded by Lin Qi.

With Pangu computers on a par with PCs in the international market, there is no expert who dares to talk to Mr. Lin about his vision. Even the leaders who worship foreign countries or like to pick up garbage cheaply, after hearing Mr. Lin's analysis of the economic prospects of the industry, they do not dare to go to the 1G analog network with their backs. After all, Mr. Lin made it clear at the meeting that 1G would not work, and it would be eliminated immediately after it was launched, wasting the country's resources and not conducive to the country's development in the science and technology industry. What's more, Mr. Lin directly said that 2G is more profitable than the 1G market.

In this era, economic construction is the center, and Mr. Lin, an authority engaged in economy and industry, endorses it, saying that 2G should be wanted instead of 1G. Whoever commits a crime against the wind and insists on going to 1G will be responsible for accidents in the future.

In other words, Mr. Lin has not been vaccinated, so he can pretend not to know, but Mr. Lin has already explained the matter thoroughly, so it is impossible to pretend not to know. It is precisely for this reason that the introduction of 1G networks in China or in the 1G network is a wonderful PHS, and it has basically not been introduced in China.

As for the problem of GSM base station, the first is to introduce the GSM base station of European manufacturers such as Nokia and Ericsson, of course, domestic manufacturers are also under the premise of technology sharing of the team of the new venture electronics group, and quickly began to understand GSM-related technology, first from the introduction of parts, imitation to start with. However, in the next three years, the localization rate of key components of GSM base stations will reach more than 95%.

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In 92, on October 1, China Telecom, China Unicom and China Mobile, in the name of the National Day gift, opened the first batch of GSM base stations in Beijing, Shanghai, Guangzhou, Shenzhen and other four cities.

The three major operators, after listening to Lin Qi's suggestion, can provide users with free access to the network, and at the same time, operators can subsidize users and send mobile phones to charge phone bills. After all, at present, the big brother of the 1G network that operates in only a few cities in China costs more than 6,000 yuan, and the telephone bill is far more expensive than that of a fixed telephone.

This approach is mainly due to the fact that the early operator capital is relatively weak, and the scale of infrastructure investment is relatively large, and it is necessary to use the money of current customers to invest in base stations that will produce benefits in the future, so it is more expensive.

However, now the state subsidizes telecom operators more than 50 billion yuan per year, plus bank loans, so operators have the ability to reduce phone bills, so as to expand the scale of mobile phone users. After all, the telecommunications industry has never been an industry that makes money by charging a small number of users at high prices, but like hydropower, it is a public infrastructure, and it has always generated huge social benefits by serving more users. In fact, the telecom industry is driven by the improvement of information efficiency and more new industries, which can take this opportunity to develop.

On October 1, the first batch of GSM base stations in China were publicized with the help of CCTV, People's Daily and other media channels, among them, there was zero network access cost. Moreover, GSM mobile phones are more advanced, and the price is cheaper than that big brother. The three major telecom operators have successively launched the package business of pre-depositing phone bills and sending mobile phones. Of course, the so-called delivery of mobile phones, the wool is still out of the sheep, and it needs to be deducted from the user's prepaid expenses. Operators are certainly not losing money, and after two years, users will still be able to generate a steady stream of profits if they continue to use it.

It has to be said that many people have been underestimating the consumption level of Chinese. Even now in the 90s, most people earn less than 200 yuan a month. But there are still a lot of rich people, on October 1, just after the promotion of 2G and GSM, in front of the business halls of several pilot cities, users who have handled mobile phone access to the network are lined up.

Because, this time, the 2G mobile phone, the user only needs to pre-deposit 3500 yuan of phone bills, you can apply for mobile phone access to the network, and the mobile phone is free of charge. Moreover, the phone bill has also been reduced to 0.1 yuan per minute, which is even cheaper than the local phone bill.

"Is it really a free phone?"

"Yes! The mobile phone is currently purchased from Nokia, and the cost is 2,500 yuan, but in order to subsidize users, the company has launched a concession. This policy is to look at the company's mobile phone inventory, the first batch of 50,000 purchases, mobile phones are gone, maybe the relevant policies will be suspended. ”

"I want to handle it!"

Throughout the National Day Golden Week, the three major domestic operators are frantically throwing money to subsidize users and compete for the number of 2G users. Because, now the country is a bowl of water, and will not let a certain operator monopolize the mobile communication market.

Previously, although the mobile company had a certain foundation, it was a 1G network, which probably developed a million users. This part of the user is not an advantage in the 2G era.

In the future, the major telecom operators, who want to eat and drink spicy food, will have to depend on the scale of users. With the scale of users, there is everything, and the more users there are, the lower the cost allocated to each user, and the higher the efficiency.

Just like the mobile companies of later generations, the scale of users of a company is more than that of China Unicom and China Telecom combined. The annual cost of infrastructure construction invested by China Mobile is definitely more than that of China Telecom and China Unicom alone, but China Telecom and China Unicom both need to maintain a nationwide network, so the total cost of the two companies together is more than that of China Mobile.

As a result, the profits of later mobile companies were several times greater than those of China Telecom and China Unicom combined. This is mainly because the number of users has increased, which has led to a reduction in costs, and the cost has been reduced, which is naturally more profitable.

Assuming that China Telecom and China Unicom can merge in the future, many of the network base station resources of the two companies complement each other, and on the basis of better serving users every year, they can also greatly reduce the total cost. This is because many networks of telecommunications and China Unicom are built repeatedly. For the network covered by telecommunications, China Unicom also needs to build its own resources that cannot be used by telecommunications. In the same way, China Unicom's mobile phone users, even if the mobile phone hardware supports it, cannot use the telecom network.

The competition between the three companies has certainly produced a real competitive relationship. But at the same time, there is a lot of waste of resources, such as infrastructure that is repetitively invested.

Nevertheless...... It is better to compete with three than to dominate one. In theory, a monopoly can save resources, such as no need for repeated construction, but there are new problems, and users have no choice, and the service attitude must be reduced.

In a sense, the competition between the three major domestic operators should be much higher than that of the Ministry of Posts and Telecommunications playing football and being a referee by itself, and the service attitude and efficiency are much higher.

In just one Golden Week, the three major operators have announced that the number of 2G users has exceeded 100,000. The combined 2G users of the three companies quickly exceeded 400,000!

This crazy growth rate is not even worse than that of a developed country like Japan. Of course, this is mainly because of China's demographic advantage, so more and more users can afford mobile phones and phone bills.

At the same time, the first batch of users to access the network are concentrated in first-tier cities. First-tier cities should not be measured by the national average, and many domestic rich and high-paid workers are concentrated in first-tier cities. As a result, the current real purchasing power level of first-tier cities has probably reached the county level in the 21st century.

It is precisely for this reason that GSM base stations and mobile phones are launched in first-tier cities, and there is a phenomenon of queuing up to access the network immediately.