China Radio and Television finally appeared to single out the three major operators!

In recent years, new industry applications such as smart cities, smart homes, online education, and telemedicine are very popular. In this case, China Radio and Television and the three major operators can make full use of their weapons to compete, such as 5G licenses and technology. Resources, because they all belong to the private network, whoever has the strongest strength and high technology of the four major operators can quickly enter it. This is a new opportunity for China Radio and Television.

The long-rumored fourth-largest operator is finally here. On October 12, China Radio and Television Network Co., Ltd. (hereinafter referred to as “China Radio and Television”) was officially established in Beijing, becoming the fourth largest operator after China Mobile, China Unicom and China Telecom. Different from the three major operators, China Radio and Television has implanted the genes of private enterprises since its establishment, and will have more advantages than old state-owned enterprises such as China Unicom in mixed reform. With the emergence and development of new industries, the entry of China Radio and Television will inevitably disrupt the existing pattern of the domestic communications market and break the monopoly of the three major operators.

Officially established

At the inaugural meeting, China Radio and Television Network Co., Ltd., the controlling shareholder of China Radio and Television, signed a strategic cooperation agreement with State Grid Corporation of China and Alibaba (China) Co., Ltd.

Last month, China Radio and Television held a founding meeting in Beijing, which mainly reviewed and approved the “Report of the Sponsor on the Preparation of a Joint-Stock Company”, “Report on the Establishment Expenses of a Joint-Stock Company”, “Articles of Association” and other documents, and elected the first board of directors. And the first board of supervisors; after that, China Radio and Television completed the industrial and commercial registration and obtained the business license, with a registered capital of about 101.2 billion yuan.

At the founding meeting, Zhu Yonglei, deputy director of the State Administration of Radio, Film and Television and director of the Office of the Leading Group for the Integration and Development of National Cable TV Networks, said: “First, I hope that the national cable TV network enterprises will unite and jointly promote the “one network nationwide”. The second is to hope that strategic investors will give full play to their advantages to drive the leap-forward development of the radio and television network to achieve mutual benefit and win-win results. “

China Radio and Television has taken many years from planning to establishment. As early as November 25, 2016, the Propaganda Department of the Central Committee of the Communist Party of China, the Ministry of Finance, and the State Administration of Press, Publication, Radio, Film and Television jointly issued the “Opinions on Accelerating the Integration and Development of National Cable TV Networks”, which clearly pointed out that radio and television should timely use the holdings of the The equity of the provincial network company, the national radio and television optical cable network assets, cash, etc., and the shareholders of the provincial non-listed cable TV network company shall contribute no less than 51% of the total equity to jointly initiate the establishment of a national cable TV network joint-stock company. And promote the listing of national cable TV network companies, and integrate with listed cable TV network companies through equity swaps, mergers and other methods.

On June 6, 2019, the Ministry of Industry and Information Technology officially issued four 5G licenses, announcing that my country has officially entered the 5G era. In addition to China Mobile, China Unicom, and China Telecom, China Radio and Television also officially entered the game and obtained 5G licenses.

genetically modified

It is worth noting that among the shareholders of China Radio and Television, in addition to the capital of traditional radio and television departments, it also includes non-radio and television capital such as Hangzhou Alibaba Venture Capital Management Co., Ltd. and State Grid Information and Communication Industry Group Co., Ltd.

Among the top five shareholders of China Radio and Television, China Radio and Television Network Co., Ltd. holds about 51%; State Grid Information and Communication Industry Group, a wholly-owned subsidiary of State Grid, and Alibaba Venture Capital Management Co., Ltd. respectively hold 9.8813%; Guangdong Radio and Television Network Development Co., Ltd. holds 6.1523%; Beijing Beiguang Media Investment Development Center Co., Ltd. holds 3.8469%.

In addition, a number of radio and television listed companies have also participated in China Radio and Television. Among them, Hunan TV and Radio Media holds 2.7833%; Oriental Pearl, Wasu Media, and Jiangsu Cable each hold 0.4941%; Jishi Media, Guangxi Radio and Television, Radio and Television Network, Guiguang Network, Tianwei Video, and Hubei Radio and Television each hold 0.1976% %.

“It can be seen from the shareholder lineup that China Radio and Television already has the genes for mixed reform.” Wu Chunyong, an expert in the communications industry and founder of Fusion Network, pointed out that, like other decades-old state-owned enterprises, the process of mixed reform will be more difficult, but For a young company like China Radio and Television, it has this kind of gene just after its establishment. In the exploration of mixed reform, it is bound to have a certain first-mover advantage over the old state-owned enterprises. In his view, such a shareholder composition can make up for some of the shortcomings of the radio and television department itself, such as technological innovation, business remodeling, and the establishment of a marketing system, including the re-division of the entire user group.

Major General Ding, a Sankei observer, pointed out that Alibaba holds nearly 10% of the shares, and is tied with the State Grid Information and Communication Industry Group as the second largest shareholder. It can be said that China Radio and Television has certain mixed genes. “The goal of China Radio and Television is to promote the linkage of large and small screens, wireless and wired connection, satellite and ground coordination, and fully implement the smart radio and television strategy. Such a shareholder composition has certain advantages in technology sharing and resource integration.”

Pattern to be changed

The newly established China Radio and Television will no longer only focus on the cable TV business. After the 5G license is issued, the company will have the same qualifications to develop the mobile communication business as the three major operators. It is reported that China Radio and Television will issue the mobile phone number of section 192 in the future, and realize the co-construction and sharing of base stations by signing a contract with China Mobile. In addition to 5G services, it is also expected to launch 4G services.

In May of this year, China Mobile announced a high-profile agreement with China Radio and Television to jointly build and share 5G. The two parties will jointly invest in the construction of a 700MHz 5G wireless network at a ratio of 1:1, and jointly own and have the right to use the 700MHz 5G wireless network assets. Among them, China Mobile provides China Radio and Television with paid 700MHz frequency band 5G base stations in the city or provincial center docking point transmission bearer network, and paid to open and share the 2.6GHz frequency band 5G network, and undertake the operation and maintenance of the 700MHz wireless network, while China Radio and Television needs to Pay China Mobile for network operation and maintenance, and before the 700MHz band 5G network is ready for commercial use, China Radio and Television will share China Mobile’s 2G/4G/5G network for a fee to provide services to its customers.

However, radio and television “dream” mobile communications will take time. Yang Jie, chairman of China Mobile, revealed at the financial report held in August this year that China Mobile and China Radio and Television did not have substantial network construction and deployment in 5G cooperation this year, and will continue to promote the joint construction and sharing of 5G next year.

Major General Ding said that users should be happy to see the entry of “new players”. After all, competition is more likely to improve and improve user experience, but as for the communication market and the three major operators, what can they do? The impact also depends on what China Radio and Television can do and whether it can really stimulate the enthusiasm for competition and optimization. “After all, virtual operators were active for a while before, but they didn’t actually have much impact on the three major operators. Of course, considering the ‘one network nationwide’ strategy and the trend of network integration, the follow-up impact of China Radio and Television on the industry It is still worth looking forward to.” According to the Ministry of Industry and Information Technology, as of the end of August this year, the total number of mobile phone users of the three major operators has reached 1.598 billion.

“After entering the 5G field, China Radio and Television is like a catfish, which can stir up the current communication field pattern constructed by the three major operators. Although the company is a new recruit in the field of communication, due to its intervention, it can be combined horizontally and vertically to make There will be huge breakthroughs and progress in the communication industry in the future.” Wu Chunyong said.

As for the new development plans of China Radio and Television after its establishment, the reporter also interviewed the company. As of press time, the other party has not given a reply.

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