Because of the specific sales behavior of 4G+ mobile phones, this time the country has taken the shot

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/ 2019-05-06 / News

Buy a dual card dual standby mobile phone, can't you use dual 4G?

China Mobile 4G+ mobile phone users probably have this experience. In addition to China Mobile's main number, I want to buy a telecom and China Unicom number as a traffic card, but found that only 2G network speed, restrict users to use Telecom and China Unicom's 4G network. Because of the specific sales behavior of 4G+ mobile phones, this time the country has taken the shot!

On the evening of April 29, China Mobile announced that the State Administration of Market Supervision is investigating the sales of customized 4G+ mobile phones of four provincial companies. Whether the specific sales behavior may constitute anti-competitive behavior, the sales behavior includes “paying subsidies to distributors and setting performance targets for mobile phone manufacturers to increase the number of provincial companies The sales volume of the specially customized 4G+ mobile phone."

China Mobile Response: Suspension of related sales practices

China Mobile said in the announcement that the relevant investigations are still in progress and China Mobile has been cooperating with the General Administration of Markets Supervision during the investigation. At the same time, China Mobile said it has suspended relevant sales activities, and relevant insiders said that the relevant sales behavior has been suspended, referring to the above specific sales behavior, "not to sell this (4G+) mobile phone.”

Operator-customized mobile phones refer to mobile phones that are customized by mobile operators to mobile phone manufacturers. In general, operators will subsidize custom machines to lower their prices. Custom machines also limit the service functions or networks of other operators. Since the sales price is usually lower than the normal version of the mobile phone, operators can use the custom machine to bind more users to themselves.

In response to the investigation by China Mobile, the independent telecommunications analyst Fu Liang believes that operators can sell customized mobile phones through subsidies, allowing consumers to purchase mobile phones at a more favorable price. It is also possible to appropriately protect the operator's upfront capital investment and should be allowed.

However, the specific sales method of low-priced custom machines may also involve unfair competition. Consumers' right to know, etc. However, because the information currently published for the survey is relatively limited, whether China Mobile has illegal activities in the sales process remains to be further observed.

What is a 4G+ phone?

"4G+" is a general term for 4G network upgrades in the international scope and mobile internet industry, used to describe and describe applications Lte -A 4G network of carrier aggregation technology.

The most prominent and core performance of "4G+" is that the 4G network speed has doubled or even multiplied, However, because it does not adopt disruptive new technologies (such as<5>5G technology with a network speed of up to 100G/S), the accelerated 4G network in the industry is collectively referred to as "4G+".

It is reported that the mobile 4G+ version of the mobile phone is a customized model of the mobile phone manufacturer and China Mobile, limited to the use of mobile 4G signals,Other carriers SIM cards can only use 2G traffic when they are inserted into the secondary card slot.

Why move the "love" custom machine?

In the past two years, all Netcom mobile phones supporting various network formats have gradually become the mainstream in the market, with fewer and fewer custom machines. Compared with China Unicom, China Telecom’s favor for custom machines has not disappeared.

Industry believes thatThe biggest reason for China Mobile's "love" custom machine is that it wants to keep its existing user base and avoid the use of the entire Netcom mobile phone to divert its users.  After all, China Telecom and China Unicom's 4G full-duplex communication technology is more mainstream internationally.

Fu Liang said that China Mobile believes that it has speeded up the speed of mobile phone manufacturers to provide 4G mobile phones by means of money subsidies. If consumers get 4G mobile phones and use competitors' 4G networks, it is definitely a loss for China Mobile, so China Mobile will adopt some special restrictions on mobile phones. .

In this context, China Mobile has been caught in the storm of custom machine sales more than once.

2017,The customized version of 4G mobile phone sold by some mobile channels of China Mobile has launched the slogan of “Mobile Customized Full Netcom”, but after purchasing these models and inserting the mobile phone card of China Mobile, the user found another China inserted in the card slot. The 4G Internet access function of China Telecom's or China Unicom's mobile phone card has been "castrated." Therefore, some users believe that China Mobile is falsely propagating and deceiving consumers.

At the time, in addition to some users, China Mobile’s behavior was also accused by its peers. In May 2017, Ya'an Telecom released the message “A picture to teach you to identify true and false all Netcom” through the company WeChat public number. The information clearly indicates that the mobile phone with China Mobile LOGO is a fake full Netcom mobile phone.

"Sales custom machines can't infringe consumers' right to know, nor should they set up too 'overbearing' contract packages." Liang said that limiting the performance of the custom machine but not telling consumers in an easy-to-understand way, or even deliberately confusing the difference between the custom machine and other mobile phones, is unfair competition.

网友评论

Mobile pressure It’s a bit big

Although it’s not known how China Mobile’s involvement in the survey will end in the end, it’s the domestic communications market. "Overlord", China Mobile has faced considerable performance pressure.

As of the end of the first quarter of 2019, China Mobile has a total of 931 million mobile customers. Among them, the total number of 4G customers reached 723 million, and the net increase of 4G customers was 10.67 million in the first quarter. The total number of customers was 167 million, and the net increase in the first quarter was 10.34 million.

However, the growth in user size has not led to an increase in performance. In the first quarter of 2019, China Mobile's operating income was 185 billion yuan, down 0.3% from the same period of the previous year. Among them, communication service revenue was 165.9 billion yuan, down 0.5% from the same period of the previous year. Profit attributable to shareholders was 23.7 billion yuan, down 8.3% from the same period of the previous year.

The decline in performance has a certain relationship with the decline in sales revenue of end products. According to the financial report, an important reason for the decline in China Mobile’s revenue is the decrease in revenue from sales of terminal products. On the one hand, fewer people buy contract machines, and on the other hand, operators’ subsidies are reduced, and terminal products are sold. Reduced income.

However, the overall pressure on the industry is the deep-seated reason for the decline in China Mobile's performance. The data released by the Ministry of Industry and Information Technology shows thatIn the first quarter of 2019, the telecommunications business revenue totaled 332.3 billion yuan, a year-on-year increase of 1.0%, and the growth rate dropped 4.1 percentage points year-on-year, down 0.9 percentage points from January to February. Among them, mobile communication business revenue accounted for 68.2% of telecom business revenue, down 2.9 percentage points over the same period of last year, while mobile data and Internet business revenue also showed negative growth in March.

"The speed-up and fee reduction will continue, and the port number transfer will be fully implemented. Under the government supervision and fierce market competition, the carrier's basic communication services will face Increment does not increase revenue, even business volume increases, and the income declines severely. Operators must accelerate the pace of new business advancement." Fu Liang said.

For the future direction of China Mobile, industry insiders believe that on the one hand, in the face of the upcoming 5G era, China Mobile should promote the accelerated development of 5G application ecology. As soon as possible, it will become the growth point of its own performance; on the other hand, as the most powerful of the three major operators, China Mobile should further strengthen the capital operation.Speed up the revitalization of idle funds and improve the utilization efficiency of this part of the funds.

Keywords: China Mobile 4G+
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