China Telecom snatches 5G and is not likely to sell its exclusive segment in September.

 China Telecom snatches 5G and is not likely to sell its exclusive segment in September.

Sept. Release Exclusive Segment

At a 5G Experience Hall of Beijing Telecom in Chaoyangmen, staff members told Beijing Business Daily that all the mobile phones officially sold in the experience hall are 4G mobile phones, and 5G mobile phones will be sold in the experience hall on August 16. In addition, the staff member said that they had heard that Beijing Telecom would launch a 5G package and exclusive segment in September, but no formal notice had been issued.

According to the above staff, the new 5G special segment is mainly suitable for users who buy new electric numbers. For the old users of 4G, the 5G network is basically open without changing cards or numbers, just changing a 5G mobile phone.

In response to the 5G package and exclusive section, Beijing Business Daily reporters interviewed the relevant directors of China Telecom. China Telecom said that 5G? Has not yet officially provided commercial services. At present, we have provided free 5G experience activities with 100G traffic in many regions of the country. Follow-up settings of 5G packages will be optimized according to 5G characteristics, and packages will flow more.

Although the formal package has not yet been launched, China Telecom has launched a 5G experience package in Beijing. It is understood that China Telecom will open the 5G experience package to users who buy 5G mobile phones free of charge. The experience package includes 100GB experience flow per month. The experience time limit is about two months. Users can send short messages or process it through the business hall. The maximum 5G rate of the experience package is 1Gbps.

In terms of network coverage, the information disclosed by Beijing Communications Administration shows that Beijing has completed 5G network coverage in the areas of Beijing University of Posts and Telecommunications and College Road, Financial Street Core Business District, Guanghua Road Office Area of Central Radio and Television Station, Daoxianghu Unmanned Vehicle Experimental Area, Yizhuang Unmanned Vehicle and Core Area.

In Beijing Telecom 5G Experience Hall, Beijing Business Journal reporters experienced the network speed of 5G mobile phone in 5G environment, the actual download speed can reach 120M/S, in fact, the transmission speed also exceeds 10M/S, which means that a 5GB high-definition movie can be downloaded in less than a minute.

It is noteworthy that in mid-and late August, China Telecom will continue to open 5G experience areas in some large business halls. Users without 5G mobile phones can experience ultra-fast network speed by connecting to WiFi.

Operational pressure

Although 5G commercial will bring hundreds of billions of market opportunities, including China Telecom, the three major domestic operators are facing a lot of pressures.

According to the data released by the Ministry of Industry and Information Technology, in the first half of the year, the revenue of domestic telecommunications business totaled 672.1 billion yuan, down 0.03% from the same period last year; the revenue of mobile telecommunications business of three basic telecommunications enterprises reached 459.6 billion yuan, down 4% from the same period last year, accounting for 68.4% of the revenue of telecommunications business; and the total number of mobile phone subscribers of three basic telecommunications enterprises by the end of June It reached 1.59 billion households, a decrease of 3.53 million households over the same period of last year.

According to China Telecoms quarterly report, in the first quarter of 2019, China Telecom realized operating income of 96.135 billion yuan, down 0.5% from the same period last year, of which service income was 91.531 billion yuan, up 4.1% from the same period last year. Shareholders should account for 5.956 billion yuan in profits, up 4.5% from the same period last year.

For this achievement, Fu Liang, an independent Telecom analyst, has previously said that, on the one hand, under the environment of year-on-year decline in operating income and higher speed and lower fees, China Telecom has provided more services and failed to maintain positive revenue growth. A large part of the profit growth comes from the investment premium of the tower company. On the other hand, as the grain field of China Telecom, the cable broadband will soon be surpassed by China Mobile.

Recently, China Telecom, China Mobile and China Unicom announced the results of the Speed-up and Fee-Reduction user face-to-face forum organized by the Ministry of Industry and Information Technology. Since 2015, the unit price of traffic has dropped by more than 90%.

Speed-up and fee-reduction itself will have a top-touching process, operators also need to survive. According to Ma Jihua, a senior Telecom analyst, operators are a big capital, high cost and high risk industry. From 3G to 5G in China, the investment of operators amounts to hundreds of billions or even trillions of yuan. This money has never been earned back. If the operators continue to reduce their fees substantially, the affordability of operators will be a big problem, which is difficult. Continuous.

Fee test

Under the circumstances that the three major operators are facing greater costs and competitive pressures, how about the tariffs in the coming 5G era has also become a focus of consumersattention.

The first batch of 5G mobile phones in China was officially launched in August. The price of ZTE AXON? 10? Pro? 5G was 4999 yuan, while Huawei Mate? 20X? 5G version was 6199 yuan. The price of these two 5G mobile phones did not exceed the estimated 10,000 yuan threshold both inside and outside the industry.

In terms of package price, it is reported that the price of 5G package of China Telecom is expected to vary from 199 to 599 yuan, which is significantly higher than the existing 4G package. According to public reports, there are about 470 yuan 15G 5G packages in the United States, 300 yuan 10G 5G packages in Korea, and 395 yuan and 658 yuan infinite flow 5G packages in Finland and Germany.

In view of whether the price threshold of the package is too high, Fu Liang said that the promotion strategy of the operator 5G package will inevitably coordinate with its 5G network construction. In the initial stage of 5G application, China Telecom will certainly control the scale of user transfer appropriately to ensure that every 5G new user can have a good network experience. Therefore, it is not surprising that a certain price threshold, China Unicom in the initial application of 4G ice cream package, the monthly rent as high as 198 yuan and 398 yuan.

In terms of package content, rumors show that the price of each slot of 5G package has been basically determined, but the volume of traffic and voice in each slot has not been fully determined. However, the traffic included in the package is expected to be much higher than the current standard of 20G per month for Telecom Enjoyment Package.

In Fu Liangs view, operators should gradually introduce some new packages to attract new users, and then transfer the old users. For the old users, the conversion of 4-G packages to 5-G packages is likely to be the same price, but 5-G packages are several times more traffic than 5-G packages. In addition, no matter from the point of view of network capacity, or from other point of view, infinite flow of 5G packages will certainly be difficult to appear.

Beijing Business Daily reporter Qian Yu-pu Zhenyu

Source: Ding Guangsheng_NT1941, Responsible Editor of Beijing Business Daily