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What Enlightenment Has China Telecom Brought As a New Force

The answers of 2018 have been announced. Although the final financial data has not been published, various user-based data are enough for everyone to analyze. Each of the three major operators has its own remarkable achievements. What enlightenment has China Telecom brought to you?

1、 Dare to take the initiative to reduce prices and compete may be the key to the rapid increase of its user scale

Regardless of whether it is based on the consideration of realizing 4G investment, China Telecom's radical marketing in 2018 deserves special attention, and its intensity is far more intense than that of China Unicom. Relying on the support of batj and other Internet giants, and relying on online and offline integration, the mixed reform China Unicom gave full play to the advantages of different industries integration with Internet companies to seize the content highland, especially under the leadership of Tencent wangka, an unlimited package of star product traffic orientation, which directly disrupted the foothold of friends, especially China Mobile. Compared with the forward-looking and left-right swing of China Mobile, the rapidly awakened China Telecom directly launched the interception of Tencent wangka with the 49 yuan national unlimited package, and took the lead in the comprehensive open traffic benefit activities represented by the national unlimited package. Finally, waking up, China Mobile finally saw the market and began to launch unlimited packages of various names. Active price reduction may be a more prominent business card of China Telecom in 2018.

From the monthly net user growth index, compared with the ups and downs of China Mobile and the lack of stamina of China Unicom, the trend of China Telecom is relatively flat. Among them, the courage to reduce price competition may be the most critical factor. Whether it is the king card of various names against Tencent king card or the warwolf card directly against China Unicom Bingwang card, China Telecom takes the initiative to copy the model of friends and compete directly at a lower price. Originally, China Telecom occupied a large number of fixed line broadband users. At this time, relying on the impact of low-cost number cards and supported by the hardware of all Netcom terminals, China Telecom directly led the net increase of users in the mobile communication market in 2018. It can be said that without the sudden surge of 4G users in the last month of China Mobile, China Telecom will be the double champion of the net increase of mobile phone users and 4G users.

2、 Choose to exchange the market for income. Although fixed line broadband ranks second, its revenue share still accounts for about 50%

China Unicom and China Telecom are more concerned about the income contribution of broadband users than China Mobile. From the total amount of last year, the increment of China Mobile is not only ten times that of China Unicom, but also its market share of broadband incremental users is as high as 72.6%. Although the growth of China Telecom is far less than that of China Mobile, it still maintains a high increment in the fierce market competition. Various "free gifts" in the broadband market in 2018 are not only the basis for the growth of China Mobile, but also the reason for the weak growth of friends such as China Unicom and China Telecom. In this change, in addition to helplessness, there may be a deliberate active choice.

Between broadband users and income, including China Telecom and China Unicom have chosen the latter. Since the "free gift" of China Mobile is unstoppable, the relatively wise choice for friends is to avoid its edge and take the initiative to maintain the core users and revenue scale. China Mobile's broadband revenue is not only similar to that of China Unicom, which has the smallest user scale, but also far lower than that of China Telecom, which has the same user scale. It can be said that China Mobile bought a large number of users with money, while China Telecom traded the market for income. All kinds of "free" users in the broadband market are relatively price sensitive. Therefore, the huge number of users harvested by China Mobile is not only the basis for increasing its revenue, but also the burden for improving its contribution to user value. Between the foundation and burden, China Mobile will spend a huge amount of money to balance. Relatively speaking, the binding of broadband with low exposure of life scenes mostly comes from the monopoly of its operators on residential areas. Therefore, the steady growth of China Unicom and China Telecom largely represents that they have retained high-value users in the broadband market. Thus, as a latecomer, China Mobile needs to spend a lot of resources to maintain its users in exchange for huge investment. Will the broadband market in 2019, including China Telecom and China Unicom, obtain various "free" users that China Mobile can't keep due to lack of resources through "waiting for work"? Whether more or less, at least this possibility still exists.

The active attack in the mobile communication market and the active contraction in the fixed network broadband market, the business elasticity deduced by China Telecom in 2018 is absolutely worth studying. Not being obscured by various first or champion names, even if there are too many helplessness and compulsion, perhaps this is also the basis for China Telecom's ease.

What Enlightenment Has China Telecom Brought As a New Force 1

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