The battle between 4G+ and all-network service triggered by mysterious letter

Recently, a local company of a certain operator suspected that it required the channel to remove the full network terminal from the shelves, and did not actively recommend the full network unless the customer actively inquired. According to internal documents obtained by Feixiang.com, in order to promote the marketing of 4G+ mobile phones, the company sent a letter to the channel to prohibit the exposure and sales of the full network version within a specified time. For the supply platform that violated the regulations and supplied non-4G+ models to the channel, it would be fined or the product would be removed from the shelf.

The mysterious "non-active" strategy

According to the news, in mid-May, a local company of a certain operator issued relevant letters to channel dealers and supply platforms to jointly promote the marketing of 4G+ mobile phones, requiring that within a limited time, "if there is a 4G+ version of the same model of mobile phone, the channel can no longer purchase the full network version, and the inventory of full network versions will be given a 20-day clearance period; the full network version is prohibited from being exposed and sold; brands that do not have 4G+ models on the market are prohibited from selling them in the channels, and channels are not allowed to purchase and sell any models of this brand."

According to the requirements of the letter, "starting from May 18, all customers who come into the store to purchase 4G terminals, and the terminal has a mobile 4G+ version, are required to first promote the mobile 4G+ version of the terminal through the contracted channel. For cooperative brand terminals that do not have a mobile 4G+ version, no active recommendations will be made unless the customer actively inquires. The 4G+ mobile phone listing rate and first-promotion rate must reach 100%. Anyone who is found selling or displaying non-4G+ mobile phones in the process of attracting merchants to settle in or entrusting franchise stores will be fined."

The competition between 4G+ and full network access

Since the end of 2016, China Telecom and China Unicom have jointly started to promote six-mode all-network terminals. The cooperation between the two parties has made the trend of six-mode all-network sweep the domestic terminal market. Also at the end of 2016, as the leader of China's 4G market, China Mobile, in conjunction with the commercial use of 4G+ networks, began to fully develop 4G+ terminals. It also maintained resource investment commensurate with its market position, provided users with 4G+ mobile phone subsidy policies, and vigorously carried out joint marketing with industry partners.

In December 2016, China Mobile released the "China Mobile Terminal Development Strategy 2017", proposing to strive to maintain the leading edge of 4G+ products. In terms of network standards, it is required that all products must support five modes and above from the end of February 2017, single-card products must support all operators' 4G standards, and dual-card products must support network optimization. According to China Mobile's plan, the sales volume of 4G mobile phones in 2017 will reach 400 million units, of which 265 million units will be replaced with 4G stock phones.

Regarding the news that local operators have asked channels to remove all-Netcom terminals, some people believe that the coordinated promotion of 4G+ phones, on the one hand, represents the helplessness and even dissatisfaction of channels, but on the other hand, it is also a normal business behavior for enterprises. "It is normal for enterprises to set some rules for their own interests, as long as there is fair competition," said a company representative.

"For companies, there is nothing wrong with maintaining their own inventory and increasing the growth of their own products in the fierce market competition. It's just that forced promotion or forced removal from the shelves seems less popular. China Telecom and China Unicom jointly promote full network access, which is also a targeted development of 4G to highlight their own competitive advantages. You can't say they are wrong," an industry insider pointed out.

Some channel dealers believe that "as a business, we are not opposed to 4G+ mobile phones, but we should not adopt a one-size-fits-all approach." This seems to represent the voice of another group.

Competition has always existed in an industry chain, and in the competition, it seems that every party is full of grievances. However, at some level, for the three operators, how to use their own advantages, compete fairly under the guidance of national policies, and develop together is better than "disrupting each other".