Interpretation and liberalization of telecom tariffs: price reduction is harder than symbolic meaning is greater than substance

The United Nations Development and Reform Commission of the Ministry of Industry and Information Technology issued the Notice on the Implementation of Market Regulation Price for Telecommunications Service Tariffs. On the evening of May 9, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly issued a document to implement market adjustment prices for all telecommunication service tariffs. Telecom enterprises can independently formulate specific tariff structures, tariff standards and charging methods. At the same time, in order to protect the rights and interests of users, the paper puts forward a number of requirements for the design, promotion, agreement and accurate billing of telecom companies. In addition, the Notice also abolished relevant documents concerning the approval of telecommunications tariffs.

The telecommunications industry is already market-oriented, and the notice has little impact on industry prices. Judging from the situation we have learned, the opening of the telecom service tariff is a landing version of the State Council’s “Decision of the State Council on the Cancellation and Decentralization of a Batch of Administrative Approval Items”. Different from bank interest rate control, the previous Ministry of Industry and Information Technology has imposed restrictions on the regulation of telecom tariffs. After the changes in marketing methods and price competition in the 3G era, operators have already implemented a series of long-term market integration, free access, and group V networks. Price concessions, at the same time, the package price has also dropped significantly. Therefore, it is no longer necessary to reduce the telecommunications industry tariffs through administrative means, and has little impact on industry prices. At the same time, some of the pricing documents that were abolished are earlier versions, which are in line with the current policy direction of simplifying the approval process.

Focus on the 4G process, focusing on business and model innovation. We believe that the current rapid advancement of 4G network construction, focusing on business and model innovation is the key for governments, operators and equipment manufacturers. First of all, for the government, 4G construction as a "micro-stimulus" means, and is the basis of the development of domestic information technology, must build a good development environment for it. Second, for operators, 4G networks will be the basis for the next round of user competition. Equipment vendors are the biggest beneficiaries of 4G promotion. Therefore, the market does not have to worry that the government will over-press the telecommunications price in the early days of 4G development.

Helps to encourage virtual operators to actively innovate. The current "Notice" is issued at the eve of the large-scale numbering of virtual operators. We believe that for virtual operators, the biggest opportunity lies in model innovation, which can bring more Internet thinking into the telecommunications industry and form user penetration. The release of tariff control paved the way for virtual operator model innovation.

Interpretation and liberalization of telecom tariffs: price reduction is difficult to say, symbolic meaning is greater than substance

Under the Ministry of Industry and Information Technology, the pricing power of the discharge letter is charged, and how much space does the operator have to cut the price?

If the approval of the telecommunication service tariff is released, does it mean that the tariff of the communication industry will be significantly reduced?

Compared with other international and regional regions, the domestic tariff level is still high, and there are still non-one-way charges, roaming charges and complicated value-added service fees for mobile phone calls. Therefore, whether it is mobile phone fees or Internet access fees, there is a lot of room for decline; but it will not fall rapidly after the release of administrative approval, even if the decline is not due to the release of tariff approval.

Therefore, this document does not directly lead to the reduction of tariffs. The price is cheap, it is the result of a market, and there is no direct relationship with this document. The formalism of this document is greater than the actual meaning, and only shows an open attitude to the outside world. In fact, the impact of the Ministry of Industry and Information Technology's tariff approval on the competition in the communications market has gradually declined. The current communication market has long been a "market talk."

Judging from the current situation of the domestic communication market, the impact and impact of the administrative approval authority to release telecommunications tariffs on the communications industry is not obvious. It is still the strategy and measures of telecom operators to truly determine the future communication market tariffs.

policy analyzing

1. Recently, the Ministry of Industry and Information Technology and the National Development and Reform Commission issued the Circular on the Implementation of Market Regulation Price for Telecommunications Service Fees (hereinafter referred to as the “Notice”). What is the purpose of issuing the Notice?

A: In order to implement the spirit of the Third Plenary Session of the 18th Central Committee of the Communist Party of China on comprehensively deepening reforms and improving the price determined by the market, the Ministry of Industry and Information Technology is required by the State Council's Decision on Cancellation and Decentralization of a Batch of Administrative Approval Items. The National Development and Reform Commission decided to implement market adjustment prices for all telecommunications businesses. The main purpose is to promote the decline of telecommunication service tariffs by further encouraging market competition, give full play to the market's "invisible hand" to regulate the tariffs, and comprehensively improve the efficiency of the telecom market economy.

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