5G is coming, but the three major operators are playing "Three Kingdoms"

I wonder if you have visited the business halls of major telecom operators recently. The packages there are very cost-effective. Take China Telecom for example. China Telecom has launched a set of "perfect" packages, which feature unlimited data for the whole family. The data used by the whole family can be used 100%. Not only that, it will also help you upgrade your home broadband to 200 megabits for free, and give you a high-definition TV line and a mobile phone. How much do you think these things cost? Only 199 a month! China Mobile and China Unicom have similar activities. Why do operators launch these blood-letting packages? Isn't this a losing business?

In fact, this is still related to the upcoming 5G. I think everyone will understand it after I tell you one thing.

On July 24, news came from China Unicom that China Unicom and China Telecom will work together to build a 5G network and achieve co-construction and sharing.

To interpret it more deeply, the gap in strength between operators has actually widened before the battle for 5G has even begun. For example, China Mobile spent 360 billion yuan on 4G network construction, while China Telecom and China Unicom spent about 200 billion yuan and 150 billion yuan respectively. 5G is more difficult and will cost more.

The 2017 financial report shows that China Mobile has nearly 500 billion yuan in funds on its books, while China Telecom and China Unicom do not have such confidence at all. The large-scale construction of 4G has emptied their funds. It can be said that China Mobile is capable of building a 5G network alone. Therefore, the competition in the telecommunications operator industry is extremely fierce. China Mobile is already actively promoting 5G construction. If China Telecom and China Unicom miss the development window of 5G, they may be left far behind by China Mobile.

Do you understand? In fact, these are all paving the way for operators to acquire more 5G user stocks. However, for operators like Telecom that have no advantage in capital reserves, they can only increase discounts on packages to acquire more loyal users.

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The recent news about the merger of central enterprises on July 20 and the official operation of "China Information and Communications Technology Group" also tell us that competition in the communications industry in terms of 5G is imminent.

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But I want to say that competition is competition, and it is the consumers who bear the brunt of the market competition. The Prime Minister said before that "speeding up and reducing fees" means "speeding up will increase the competitiveness of enterprises, and reducing fees will reduce the total social cost." Enterprises that can do this will surely gain long-term competitive advantages in the 5G era.