Business Data Services Fixed Price War Is Difficult To Focus On The Future

Ministry of Industry, Development and Reform Commission jointly issued 24 "on the adjustment of fixed local telephone service pricing management notice", the reform part of the management of telecommunications charges, fixed charges, local telephone and other services to implement an upper limit.



Ministry of Industry, Development and Reform Commission official said, Fixed telephone Business competition in the market has taken shape, related business should be gradually handed over to the market price, the next telecom tariff reform is the government has gradually by direct regulation of tariff levels, the subject turned to regulate the market price behavior management, and further to lower the corporate guidance and supervision the level of telecommunications charges.



"Open competition will result in fixed line markets fired 'price war'?" In this regard, analysts pointed out that the fixed line market is now almost no growth in the value of the operator ARPU (revenue per user per month) the contribution of more is limited, the data carrier is the future of business competitiveness, and if the price war in the fixed market, the final worth the trouble.



Official price of withdrawal Industry and Information Ministry official said that the reform mainly related to fixed local telephone, PHS Basic telecommunication services such as monthly charges and local Netcom The bill, mainly to adjust the price of the above forms of management of telecommunications expenses, not related to specific rates, adjusted.



Before the reform, the telecommunications service charges are to implement government pricing. Telecommunication companies introduced various tariff concessions "packages", also need approval by the competent government departments. The upper limit of the reform will be implemented, the specific way: the telecommunications companies should at least provide users with a current standard tariff of charges, billing units of the same, and the level of no more than the current standard rates of the tariff program.



Second, the reform of long-term lease rental charges, the circuit's management, implemented by the government pricing to the upper limit.



Previously, fixed-line basic monthly fee and call charges local network operating in the region to implement government pricing. Former Ministry of Information Industry, State Development Planning Commission, Ministry of Finance "structural adjustment on telecommunication fees notice" (the Faith United Qing [2000] No. 1255) will be the basic monthly fee according to provincial cities, to cities and counties, rural and office phone division for the four-level meeting, was divided into different levels of tariff sub-grades within the standard 10-35 per month range; local network operating in the region airtime total of three files, the first 3 minutes standard rates were 0.18 yuan, 0.2 yuan, 0.22 yuan per minute after the standards were 0.09 yuan, 0.1 yuan, 0.11 yuan. Specific standards are set by the local rates in the selected grade identified.



For this reform is not fully liberalized fixed-line tariff issues such as telecommunications, the official said, competition in fixed telephone services market has taken shape, related business should be gradually handed over to the market price, but the fixed local telephone services and is closely related to the general interests of telecommunications users and the level of competition needs to be improved, the Government charges, the level of their need for cap management.



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Currently, China Mobile has been in Guangdong, and Beijing launched TD wireless landline business, and take a more aggressive pricing strategy. Beijing Mobile launched the TD plane monthly rent for 10 yuan a month, the prices and Beijing Unicom 21.6 yuan, compared with a big advantage.



Industry believes that, due to tariff advantage, the business users for telephone traffic, especially large corporate users, is very attractive, fixed rates after the implementation of upper limit, China Mobile is expected to use its own power to take certain pricing strategy, which is conducive to corporate users new fixed-line market.



But First Capital Securities researcher Ren Wenjie that today almost no growth of fixed-line market, the value of the operator ARPU (revenue per user per month) contribution is limited and data services operator is the focus of future competition, if In the fixed market price war may finally be worth the candle.