How much is the difference between China's mobile and connection strength?

Competition exists in name only! The profit difference of China Mobile Unicom is 10 times 10:45: 17.

With the widening profit gap between the two operators, the duopoly competition in the mobile communication market has changed.

According to the financial statements of operators in 2005, the net profit of China Mobile reached 53.55 billion yuan, while that of its competitor China Unicom in the mobile communication market was only 4.93 billion yuan, a difference of more than ten times. The gap between strength and development speed shows that the duopoly competition in China mobile communication market has existed in name only.

The profit gap leads to the disparity in strength.

As an attempt to introduce competition mechanism into China's telecom industry reform, China Unicom has greatly improved its enterprise strength with the support of policies. However, from the development in recent years, there is still a huge gap with the leading mobile operators, and the gap is still accelerating.

Judging from the net profit of the two companies, in 2005, the operating income of China Mobile and China Unicom were 243.04438 billion yuan and 87.05 billion yuan respectively. The net profit was 53.55 billion yuan and 4.93 billion yuan respectively, a difference of more than ten times.

Judging from the profit margins of the two companies, the profit margins and total profits of China Mobile have remained high because of its lucrative mobile business and a large number of high-end users brought by its network and brand advantages. According to the related reports of Xinhua News Agency and People's Posts and Telecommunications, in 200 1 year, China Mobile (Hongkong) had an annual operating income of 654.38+000.3 billion yuan, a net profit of 28 billion yuan, a profit rate of 28% and a net profit increase of 55%. In 2002, the operating income was 654.38+028.6 billion yuan, the net profit was 32.7 billion yuan, and the profit rate was 25.4%. In 2003, the operating income of China Mobile reached 65.438+0586 billion, the net profit was 35.556 billion and the profit rate was 22.4%. In the same period, the profit margin of China Unicom was almost below 10%.

Judging from the growth rate of the two companies, China's mobile business revenue achieved double-digit growth in 2004 and 2005, exceeding 15% and 18% respectively, and it was as high as 20% in June-May this year; In the same period, China Unicom only had 8% and 7%, and this year 1-5 years only increased by 7%. .

In a word, there is a big gap in net profit, profit rate and growth rate between China Mobile and China Unicom, so it is impossible to form equal competition in the field of mobile communication. China Unicom is no longer a real competitor of China Mobile in strength, so fair competition is out of the question.

The duopoly competition exists in name only.

People have been thinking about a question: Why can't China Unicom, which enjoys policy support, compete with the leading mobile operators?

Because China Mobile has only one G-net, we don't need to think too much about external factors when formulating the company's development strategy, and concentrate on doing a good job in G-net. This can not only concentrate the company's employees, funds and other high-quality resources to develop users, but also help to deploy the company's long-term strategy, realize the rational allocation of resources and maximize the operating effect. China Unicom has two networks, G and C, which greatly limits the formulation and implementation of its development strategy. Coupled with personnel, capital, technology and other factors, the network quality and coverage are far behind China Mobile.

Crucially, with the deregulation of major mobile operators by the government in recent years, China Mobile has launched a series of low-cost promotions, which poses a threat to China Unicom.

Originally, relying on policy support, China Unicom could be 10% lower in price than China Mobile. However, since the Ministry of Information Industry officially approved the package tariff of China Mobile 200 1, the price protection of China Unicom has actually been broken. According to relevant data, from 200 1 to 2006, the tariff of China Mobile dropped by 50%-70% on average. In May, 2006, China Mobile launched low-priced packages in Beijing, Shanghai and Guangdong, among which the call charge for 50 packages in Shanghai has been reduced to 0. 1 yuan/minute. At the same price, China Unicom can't compete with China Mobile in terms of network scale, service quality, technical level and brand appeal.

The price advantage disappears with the launch of mobile package, and the existence of two networks also restricts the development, which leads to the growing gap between mobile and China Unicom, making the duopoly competition in the mobile market exist in name only.

The sustainable development of mobile communication industry is facing challenges.

With the duopoly competition in the mobile field in name only, the mobile market has been unable to achieve equal competition, which not only deviates from the original intention of telecom reform, but also seriously affects the comprehensive, coordinated and sustainable development of the mobile communication industry.

First of all, "the stronger the strong, the weaker the weak", and the profit difference between the two competitors exceeds 10 times. In the long run, there will be a real monopoly in the mobile field, and there will be no competition. Without effective market competition, where can industrial development start?

Secondly, under the pressure of price reduction by leading mobile operators, China Unicom's existing strength can't keep up with the competition, but if it doesn't participate in price reduction, it can only do nothing.

Therefore, after losing its price advantage, any choice of China Unicom will hurt itself, and more importantly, it will be even worse for the sustained and stable development of the entire mobile industry. For example, blind price reduction in the mobile field will lead to the loss of state-owned assets, which will affect business innovation and service quality improvement.

As Wei Shi, director of the Industry Office of the Institute of Economic System and Management of the State Council Development and Reform Commission, said in an interview with this reporter, China Mobile is the leading company, and there is no competition situation of mobile duopoly, which really makes China Unicom unable to develop. The state can create a market to promote industrial development through policy supervision and other means.

To sum up, how to keep pace with the times, change the regulatory thinking, speed up policy adjustment, and build a fair, coordinated and effective competition pattern has become a new topic facing the regulatory authorities.