Wednesday, September 29, 2010

3 years 68 million PHS users delisting where flow (Figure)





PHS will completely withdraw from the market in 3 years! According to the Ministry of Industry and Information recently released documents, PHS will gradually give up the spectrum, the end of 2011 to clear the frequency of return net work.

In fact, had cast a shadow over the future of PHS. In mid-January, Radio Authority, the Ministry of Industry formally announced the 3G spectrum allocation program had no place PHS, the use of 1880-1920MHz band is allocated to the business of domestic 3G TD-SCDMA (see January 20 in Japan version of report).

After the Spring Festival, the three major telecom operators have received under the Ministry of Industry and documents issued, and PHS delisting period was clearly defined :1900-1920MHz band wireless access system should be completed before the end of 2011 retired net frequency clear in their work used to recover the frequency unconditionally. Also requested the Ministry of Industry and China Telecom and China Unicom to stop its expansion and development of new users, not to expand coverage and develop network programs related to retirement.

Behind the scenes: the product of operators and victims Game

Interestingly, the first 3 years delisting PHS disclosure reports clearly marked "China Mobile disclosed." The details once again, PHS delisting on the surface is to monitor the policy's "death sentence" in fact it is the interests of telecom operators the result of games.

A source told us that the Ministry of Industry and, in fact, absolutely no mention of the PHS, while "1900-1920MHz band wireless access system" really means is that PHS require the Qing-frequency end of 2011 back network is also very clear instructions, but the switch to net measures introduced before the PHS, the Ministry of Industry does not want to rush the decision announced delisting of PHS. "I never expected, China Mobile are the first to reveal and lay bare the matter, upset the regulatory arrangements also makes telecommunications, Unicom by surprise."

However, the "China Mobile to" said is true, is not really dangerous, because the PHS frequency band currently occupied by the TD-SCDMA have always been part of.

In fact, the PHS business operators game itself is a product born, which from the beginning of development, the "unauthorized" was originally occupied by the band TD-SCDMA. But, then China Telecom and China Netcom suffering from sluggish growth, there is no mobile service licenses, in competition with mobile operators in an unfavorable, regulators subsequently acquiesced in the development and PHS frequency band occupied by the facts. However, as China's 3G services launch, 3G spectrum resources, the need for formal distribution, PHS "return" frequency resources also once again put on the agenda.

Since last year, China Mobile has been a continuous control policy in a number of asymmetries, such as allocation of 50 billion to China Unicom's CDMA network Telecom for the acquisition, Tianjin, Shenzhen, experimental one-way portability transfer net. Analysts said China Mobile has finally succeeded in recouping a Board: one can force back PHS, harvest a large end user market; the other hand, reversed the suppressed situation, upset rivals the market steps in contention for 3G users to get active.

Dispute: whether the mandatory three-year net too hasty retreat?

Return band from the point of view, like PHS delisting is rational. But for 68 million users, 3 years, bid farewell to PHS, feel then? With the BP machine delisting different, BP machine is a heavy blow by the mobile phone business continue to decline rapidly, and essentially eliminated naturally by the market, while small Linktone has so far been a large part of the user's favorite, even though three years later, still may have 10 million users.

PHS delisting the news spread like wildfire in the community formed a great sensation, but also caused widespread controversy. Sina held an online survey has attracted 16 million votes, of which 75.8% of people are willing to continue to use the PHS business, showing the PHS deep "mass base." In this context, let PHS as soon as possible from the historical stage, it is not an easy thing.

Recently, a Beijing lawyer Dong Zhengwei sent the information to the Ministry of Industry open application letter, asked the public on the requirements before the end of 2011 PHS delisting of the relevant documents. He said that the PHS still has a large consumer base, mandatory delisting of PHS administrative interference in enterprises suspected of monopoly. "Asked PHS delisting, in fact, intends to foster 3G phone, which is equivalent to forcing some consumers to accept 3G services, will generate a corresponding monopoly." Dong Zhengwei proposed to hold a hearing, for the consumer to decide whether the retired PHS City.

Thus, the Dong Zhengwei accused the monopoly also need to discuss whether to establish, but the attacks by the majority of users for PHS of sadness.

Destination: PHS users three options

Arrow has been in the string, can not send. Just as the same simulated network delisting, the delisting of PHS has been difficult to have much room to maneuver. Today's most urgent task is to wait for Telecom, China Unicom network as soon as possible to switch out an attractive program for 68 million PHS users a smooth transition.

The father of Professor Xu Fuxin PHS in an interview that the notice of Ministry of Industry and 3 years to recover only that the band 1900-1920MHz and not allow users to immediately withdraw PHS network. However, three years, with 68 million PHS users to go from here then?

One is natural wastage. Continue to lower rates by the impact of mobile phones, coupled with policy restrictions can not be roaming, and some inherent technical disadvantages, PHS business in 2006, nearly 100 million began to decline after the peak. Statistics show that over the past two to three years, the average disassemble PHS rate between 18% -30%, the user rate of decline is accelerating. April 2008, fell below 80 million PHS users; the end of 2008, the number of PHS subscribers has fallen below 70 million. If he continues to the end of 2011, the number of PHS users can do the rest?

In fact, starting in 2007, Telecom, Netcom has basically stopped on the new PHS plus investment, has significantly reduced its market promotion measures, and even some areas have stopped new users network. However, Telecom, Unicom does not seem to wait until the PHS business opportunities for the natural demise. The reason is simple, if Telecom, China Unicom does not take active measures as soon as possible for users to switch network, these users are likely to "naturally" to gradually move into the embrace of China.

The second is the initiative to switch networks. Sina survey, users switch to the most popular network of policy, and second to maintain the existing rates of PHS standard unchanged, 54.3% of the user support; Second, a CDMA or GSM mobile phone donated, received 33.1% support rate . At present, the vast majority of PHS users are low-end users, the average ARPU value (the average monthly consumption of the user) only 25 yuan, if the policy of keeping rates unchanged, to take "pre-existing Huafei send phone" and other measures Most of PHS users to switch network or are willing to accept.

The third is when the "nail house." China Mobile closed in 2001 when the analog network, also has not been easy, very small number of users is through the difficult negotiations finally back network. PHS 3 years, news of delisting, some users have said the intense reaction prepared to do "nail house." To adhere to the 2011's "nail house" is definitely a very small number, but Telecom, China Unicom may have had to do hard negotiations and even litigation preparation.

PHS operator position

China Telecom:

China Telecom has been carefully monitoring the implementation of national policy. At present, China Telecom has more than 4000 million PHS users, we will continue to uphold the "customer first, hard service" concept, PHS users in the network of good service, and protect the interests of users. Meanwhile, China Telecom is to speed up network construction, business innovation, will be the first to launch 3G services in an effort to satisfy the people's growing communication and information needs, provide customers with more comprehensive information-rich services.

China Unicom:

PHS takes up some places the frequency of TD-SCDMA, which is a historical problem. China Unicom will follow the state regulations related to the Qing in 2011 to complete the work frequency network back, but during the transition period, China Unicom will continue to provide services for the PHS, PHS at this stage the user will not be affected. Meanwhile, China Unicom will seriously study the PHS users to switch network program, and properly solve the possible difficulties.







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