4G/5G

China Unicom and China Telecom jointly rival China Mobile with convergent billing of 4G

Updated:2015/11/25 11:01

Esurfing open platform officially released the billing capability of the fusion version of “China Telecom and China Unicom” recently and has achieved cooperation across different operators’ open platforms for the first time. The service supports the payment function of China Telecom and China Unicom, and it can automatically identify the operator which the mobile game user belongs to and subscribers pay based on the billing standard.

The rumor has circulated these years that China Telecom joins hands with and even combines with China Unicom to rival China Mobile which remains dominant. The open platform’s release makes the bilateral cooperation closer. It was rumored that China Telecom initially formulated the idea of China Unicom and China Telecom sharing 4G network with each other in which sharing paths of resources and technologies including base stations, machine rooms and transmission were proposed and it suggested the two groups to establish a three-level (level of group, province and municipality) project team, aiming to garantee the cooperation.

China Mobile leads 4G services, leaving China Telecom and China Unicom far behind in revenue and subscriber number since it learns an important lesson from being one step behind in the 3G era.

The revenue of China Mobile, China Telecom and China Unicom in the first 3 quarters is CNY 512.7 billion, CNY 246.3 billion and CNY 211.9 billion respectively . The net profit is CNY 85.4 billion, CNY 16.3 billion and CNY 8.1 billion respectively . In the term of subscribers, the number of China Mobile’s subscribers reaches 823 million including 248 million 4G subscribers; the number of China Telecom’s mobile subscribers is 194 million including 137 million 3G/4G subscribers; China Unicom has 287 million mobile subscribers including 172 million 3G/4G subscribers.

For China Telecom and China Unicom, China Tower which was set up in 2014 is a good opportunity and they can share China Mobile’s base station resources. However, the reality is not better than imagination. China Tower has accepted 443,000 demands of tower and has accumulatively delivered 317,000 orders in the first three quarters this year with the sharing rate reaching 73%. Specifically, China Telecom reaches a sharing rate of 82.3% and China Unicom 81.2% while China Mobile’s sharing rate is just 44.7%. It can be seen that China Mobile’s attitude towards base station sharing is not as positive as that of the other two operators.

The gap between China Unicom and China Telecom and China Mobile is growing larger and larger currently. Being united to rival China Mobile has been proved a good choice for narrowing this gap and accelerating the development of 4G business, but it takes time to prove the effect and turn things around.

 Source:c114
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