Wang Zhengnan, a senior observer in the telecommunications industry, further told the reporters of Securities Daily that SASAC had already explicitly asked operators to reduce subsidies for smart terminals such as mobile phones and set-top boxes, including customized models. Four-gigabyte subsidies are being adjusted, and five-gigabyte mobile phones will not be allowed to exchange shares for subsidies.
Mobile phone subsidies were not done long ago. Others in the industry told reporters that the reason for not subsidizing 5G terminals is the high cost of investment in 5G base stations to reduce marketing costs. In fact, operators began to reduce marketing costs as early as 2014.
For the three major operators, the 5G era is totally different from the previous 3G and 4G era. Jiang Han, an expert consultant of upstream finance and economics, told the reporter of Securities Daily that in the previous era of 3G and 4G, operators often grabbed customers through subsidies and other means. Entering the 5G era, on the one hand, operators may not have so much money under the factors of speeding up and reducing fees and investing in 5G construction; on the other hand, white-hot competition or zero-sum game is gradually excluded within operators.
For operators not subsidizing 5G terminals, there are also views that one reason is to avoid vicious competition among the three operators. According to this view, the price of 5G mobile terminals is not too high, and some products have the same price as 4G mobile phones. If so, it is not significant to continue subsidizing, and it may disturb the market order and cause vicious competition.
5G for civilian use will have to wait another two years
Whether users buy 5G mobile phones depends on the coverage progress of 5G network and the starting pricing of 5G mobile terminals. Wang Zhengnan said that if the price of 5G mobile phones can be around 2,000 yuan, and the network coverage is relatively perfect, I believe there are still many potential consumers willing to taste fresh.
Jiang Han admits that users are not enthusiastic about buying 5G mobile phones at present, but this is not entirely due to price factors. There will be many different prices for 5G mobile phones in the future. Now is not a good time to buy 5G mobile phones, only after the 5G network is fully covered, can it be possible to promote users to switch to 5G mobile phones in an all-round way.
As for the real time for 5G to be used for civilian purposes, Wang Zhengnan said that it still needs about two years, and the first, second and third tier cities are expected to take the lead in benefiting. The fund gap of 5G network construction of operators is very large. In the early stage, pilot coverage is mainly conducted in developed regions, provincial capitals and municipalities directly under the Central Government. It will take about two years to form a network in the whole country. The initial price of terminal listing will certainly not come down, and the price may be gradually lowered in the second half of next year.
At the current development rate of 5G, 5G civil products are expected to take shape in the first quarter of next year. But there should be a gap from a good user experience.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425