People's Daily: "Speed ​​Up and Fee Reduction", How the Market is More Effective

The resistance to “speeding up and reducing fees” does not come from the market, but comes from a market that is not fully developed.

According to media investigations, since the three major operators announced the "speed increase and fee reduction" plan on the 15th of last month, some "speed-up and fee-down" measures have not yet been completed and there is no specific timetable for landing. Compared to fixed-line broadband speed reduction, drastic changes, most of the 4G-based mobile data traffic price adjustments still remain in the "on paper."

Say good "speed increase and decrease fee" why is it not? The reason that can be summarized is that it is constrained by operating conditions, performance considerations, and historical factors. For example, network operators need time to adjust their pricing systems and business strategies; 4G mobile networks are still in large-scale investment, and cost operations remain at a high level, which limits the space for cost reductions; many cities sign up with developers in community broadband. Exclusivity clauses, network operators who have the intention and ability to “speed up and reduce fees” cannot enter and so on. In this regard, it is the self-regulation of the market operation that has slowed down the speed of “speeding up and reducing fees”.

Doesn't "speed up and fee down" blame the market if it doesn't fully land? On the surface, this is the case, but further thinking can reveal that the resistance to “speeding up and reducing fees” does not come from the market, but comes from a market that is not fully developed. Just think, if the broadband network construction is not a high threshold entry system, the basic price will be so high? If there is sufficient competition among network operators, will redundant traffic be zeroed? If the community has adopted a welcoming attitude towards broadband, instead of trying to create a local monopoly, will the telecom market appear separatist? In fact, it is precisely because of the desire to revert to market competition, and the persistence of the inertia of closed operations, which limits the speed at which “speeding up and reducing fees” is fully achieved.

When the development of the market is not complete or true enough, it is necessary to continuously invest in "stones" to stir "deadwater" and stimulate vitality. The leading comrades of the Central Government have repeatedly urged broadband speed reduction and fee reduction. The State Council executive meeting has proposed five measures to encourage telecommunications companies to increase speed, reduce fees, implement free-speed broadband, clear traffic, and transfer services. The purpose is not to intervene in the market. To create a mature telecommunications market that can improve the macroeconomic environment, boost public entrepreneurship, and innovate. Urging network operators to “speed up and reduce fees” is a strong policy signal that forces telecommunications companies to change their existing business paradigms and adopt more aggressive attitudes to meet market competition.

It is necessary to comply with the policy signal, but also to ensure stable performance, how telecommunications companies choose? First of all, we must not regard the objective reason for restricting “speed increase and reduction of fees” as a sufficient basis, and perfunctory the “speed increase and fee reduction”. In the short term, no "speed up and fee down" can maintain the current profit level. However, in the long run, business strategies that deviate from the direction of the reform and the will of the people will not consolidate the monopoly position and will only lead to the loss of market share. Therefore, it is better to bargain with the market than to negotiate with the government.

Second, we should take the initiative to open up the market as a way to crack. The earlier the opening up, the faster the action and the longer-term benefits it can guarantee. This is common market knowledge. Reducing the market access threshold and introducing a hybrid operating mechanism can both expand the financing channels for telecommunications companies to build 4G networks and expand the space for “speeding up and reducing fees” so as to take the initiative in the future competition. This is true Respect the market, why not?

It is imperative to continue introducing incremental competition factors for the telecommunications market. Through the reform of central enterprises, breaking the existing market divisions established by the administration and creating a market environment in which the three major network operators are fully competitive is a way to introduce competition factors; cultivating new market players is also a way to introduce competition factors. The acceleration of the construction of information infrastructure in the future will provide such an opportunity. Let the three major operators and social capital stand on the same starting line and share the opportunity of information infrastructure, which will help break the existing structure of the telecommunications market and inject continuous power into “speeding up and reducing fees”.

From the perspective of the public, “speeding up and reducing fees” is a commitment made by the government. Under the existing market structure, the three major network operators are undoubtedly the responsibility of the implementation of those who do not have to pay. By complying with the policy will, following the voice of the public, and starting from the self-revolution, a balance can be struck between following the policy signal and ensuring the stability of performance. The full landing of “speed increase and fee reduction” can not only be promoted, but also has great potential.

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