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Is it possible to separate network and business?
Date:2014-08-06
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The reason why national base stationconstruction company has made a stir in the industry is that its name andwording remind people of the network and business separation which has beenunder discussion for years. The so-called network and business separation isanother path proposed by some scholars with respect to the telecommunicationsreform. It refers to making basic networks such as backbone network and accessnetwork public projects for the government to operate, with eachoperator taking charge of its own specific business only and renting network fromthe network operator. On the other hand, the basic idea of the past severaltelecommunications restructuring had been split and balance so as to finallycreate the situation of comprehensive competition among the three full-serviceoperators. -67677新澳门葡京ShuHuaying told the journalist that he had put forward the issue of network andbusiness separation as early as in 2008, “I had always considered this atendency, all the more so when the mobile Internet age comes.” However,when -澳门新葡京娱乐136sb.comnetwork andbusiness separation is mentioned, people will generally interpret it as theState taking the lead to establish a special entity for the operation of basicnetworks. According to Shu Huaying, however, such a scheme was tooradical, as there should be more than one basic network provider when it comesto -xpj68.comnetwork andbusiness separation. “Based on the current state of network and businessseparation in China, I believe that the three major operators’ basic networkscan all be separated for respective operation, so can those of broadcasting andTV operators.” Shu Huaying said in this way, the rent seekingand internal friction issues occurring had there been only one basic networkprovider can be avoided. However, currently, such a scheme exists only in ahypothetical manner, and specific operation is enormously difficult. Inparticular, under the context that the first-quarter financial results of thethree major operators have not been as good as those previous, the completionand internal friction in the telecommunications industry have long ceased to bethe most important issue. The key is to cope with the transformation in people’scommunication means and OTT competition. The 2014first-quarter financial results of China Telecom showed that its newly-addedmobile users had decreased, and those of CMCC showed that its net profit haddecreased by 9.4%year on year. The performance of China Unicom had beenrelatively steady, but its growth had also slowed down when compared with thatof last year.


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