Chapter 581: Digital Mobile Phones Start
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The franchise of the Hong Kong telephone service 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 telephone services.
The Great Eastern Telegraph Office was originally a British state-owned enterprise, but after Margaret Thatcher came to power, she began to comprehensively implement the privatization reform of state-owned enterprises in the United Kingdom. The Great Eastern Telegraph Company, whose main business was located in the Far East rather than in the United Kingdom, encountered little resistance to reform in China, so it became one of the first companies to complete privatization reforms.
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.
As local calls not only require large-scale infrastructure investment, but also charge much less than international long-distance charges. As a result, the profit margin of the Hong Kong telephone company was not as good as that of the Great Eastern Telegraph Company, which forced it to be more aggressive in its operation.
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 rapidly promote the development of the Internet in Hong Kong after taking over the Hong Kong telephone company.
At the beginning, Li Xuan took advantage of the collapse of Hong Kong's real estate industry in 82 and Hongkong Land's high debts and capital turnover difficulties, and successfully acquired 35% of the equity of Hong Kong Telephone Company from Hongkong Land, thus controlling this monopoly. After Li Xuan took over the Hong Kong telephone company, in addition to actively promoting the development of the Internet in Hong Kong. The layout on mobile communications has not been relaxed either.
As early as 1983, the Hong Kong telephone company applied for the first mobile communications license in Hong Kong. At that time, the Oriental Research Institute had just begun the research and development of mobile communication technology. At Li Xuan's request. The Oriental Research Institute skipped the first generation of analog cellular communication and directly tackled digital cellular communication.
Therefore, the company first adopted the Nordic NMT analog cellular system. It is also the world's first first-generation cellular communication network. NMT is the abbreviation of Nordic Mobile Communications Company, at a time when the Nordic countries had established a de facto free trade common area, and people could cross the border without using a passport.
In order to achieve faster and more convenient information communication, a fully automated transnational mobile communication network has become urgent. Driven by this demand, analog cellular technology is beginning to emerge. Ericsson in Sweden is one of the key players in the development of NMT systems. It was with the NMT system that Ericsson has been making a strong presence in the field of mobile communication infrastructure for decades since.
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 NMT system in Northern Europe. Many other incompatible standards were soon developed in Europe. For example, the UK's TACS, West Germany's C-450, France's Radiocom2000 and Italy's RTMI.
However, the mobile phone in the user's hand can only be used in one system and cannot be compatible with other standard networks, which makes the mobile phone cause great inconvenience in specific use. Therefore, when the European Postal and Telecommunications Administration Conference (CEPT) promoted digital cellular technology, it began to adopt a unified standard for the whole of Europe - GSM.
"Mr. Lee, we have erected a number of signal towers across Hong Kong, except for remote outlying islands. It can ensure that every corner of Hong Kong, Kowloon and the New Territories can receive a stable digital mobile phone signal. 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 needs of customers, we have specially carried out a targeted arrangement. In a place close to the Shenzhen-Hong Kong boundary river. A signal tower was erected in the east and west, so that the land boundary within three kilometers 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. Responsible for the territory-wide Internet and mobile communications services. 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.
"In the field of communications, for any country. It is a sensitive area, especially for the mainland government. Therefore, in the future marketing and promotion, we must not use gimmicks such as 'can be used normally in the mainland' to publicize, 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.
"The number of users of our NMT network has exceeded 100,000, and this part of the users is the key target group 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 and other advantages to attract users!" Gu Xinping continued.
"Has the tariff of this new digital mobile phone decreased compared to the original old-fashioned Big Brother?" Li Xuan asked directly, which was what he was most concerned about.
"Because of the construction of the digital mobile ICT network, everything needs to be started from scratch, and we are spending a lot on infrastructure upfront. So in order to recoup the investment as soon as possible, we cannot be cheap in tariff pricing on digital phones.
In contrast, the NMT network has been in operation for five years, and with the increasing number of users, the marginal cost is constantly decreasing, 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 again and said, "No, the tariff pricing must be modified! Compared with the current analog cellular technology, the biggest advantage is actually a huge leap in the number of users! 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, the NMT system has also completed its mission!
There is no need to pursue the growth of NMT system users in the future. The user capacity of simulated cellular is too small, and the increase in users will only force us to continue to spend huge sums of money to expand the basic network setup, which is not worth the loss!
Our next goal is not only to try to convince the users on our own NMT system to switch to the new generation of CDMA technology digital phones, but also to grab the users on the TACS network of Dadong Telegraph Office!" Li Xuan said with a smile.
After seeing the good results of the mobile communication service launched by the Hong Kong telephone company. In 1985, Dadong Telegraph Office also applied for the second mobile communications business license in Hong Kong from the Hong Kong government. For this purpose, the Great Eastern Telegraph Bureau has set up a subsidiary called Lianxun, which uses the UK's local TACS analog cellular technology.
It's just that in terms of infrastructure investment, Lianxun is far from comparable to Hong Kong Telecom, which is owned by Hong Kong Telephone Company. With Unixun'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 Lianxun Company, 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 did not expand its business to Macau. Even the total number of users in Hong Kong is less than 20,000.
According to the Hong Kong government's long-standing strategy, a franchise strategy is usually implemented in public services such as telecommunications, electricity, water and gas. But after all, the British government in Hong Kong was a British colonial government, and it never represented the interests of the Chinese. At the beginning, when the Daito Telegraph Office was applying for a mobile communications business license. In fact, the Hong Kong telephone company has been secretly blocking it, but it still has not been able to prevent the British from intervening.
On the other hand, the Dadong Telegraph Office first obtained the mobile communications business license, so Li Xuan's Hong Kong telephone company wanted to obtain a second license. It is likely that it will be difficult to ascend to the sky, and there is always a way to persuade the Hong Kong government to approve the exclusivity.
And since it was impossible to prevent the British from joining the competition. Then Li Xuan can only squeeze the Lianxun Company of Dadong Telegraph Bureau out of the mobile communications field through hard-hitting market competition. Due to the low carrying capacity of the analog cellular technology network. Big Brother's tariffs remain high. Ordinary people can't afford to use mobile phones at all, so although user growth is not slow, consumers' demand for mobile communications 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 GSM in Europe has not yet come out, Hong Kong Telecom has the opportunity to completely defeat Unixun.
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 the annual phone bill used by a big brother is almost enough to buy a new big brother.
It's just that Gu Xinping didn't directly reply to his boss's request, but lowered his head and was thinking. 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, I still need to organize a special team to study the digital mobile phone tariff you said before I can give you a final answer!"
Li Xuan nodded, what he needed was for his executives to have independent analysis and thinking skills, not to become echo worms. So Gu Xinping didn't affirm his suggestion himself, but made him look at the other party a few times higher.
"I know that the Internet and mobile communications businesses that Hong Kong Telecom 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 only to pick up sesame seeds and lose watermelons! I will inform Han Peng 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 immediately 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 has begun to build a large-scale digital mobile communication network. So much so that Hong Kong Talk, 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. However, compared with several other thriving listed companies under the Oriental Group such as Jiahua and Asian Entertainment, the performance of 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 fact that the Oriental Group can acquire a part of the equity of Hong Kong Telecom by way of direct capital increase can not only relieve the financial pressure of Hong Kong Telecom and even the entire Hong Kong telephone company. More importantly, Li Xuan's move undoubtedly showed his supportive attitude, 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-looking saleswoman next to him 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 are thin and light to only a few millimeters in thickness, 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 separate 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 so large that it is necessary for the Oriental 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 led by the Oriental Research Institute, and the Oriental Research Institute will also cooperate with foreign countries in the form of patent authorization!
[It's about to be 515, I hope to continue to hit the 515 red envelope list, and the red envelope rain will be able to give back to readers and promotional works on May 15. A piece is also love, and it must be better!] (To be continued.) )