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BT's Entry Into The Chinese Market Is Unlikely To Have Much Impact On The Three Major Operators.
Jan 31, 2019

In the 2G era, the competition between operators is mainly considering the coverage of mobile communication networks. However, the 4G that has developed to the present, as well as the 5G that will be commercialized, the competition between operators is already a comprehensive strength competition. At present, 4G has been commercialized in China for more than 4 years. The demand for mobile communication services by users is mainly data demand. Among the three major operators, data services account for more than their revenues.



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Operators need to provide reliable and high-speed wireless data services to users, and need to have a well-developed 4G network. It takes hundreds of billions of dollars and years to build a complete 4G network. At the same time, it needs a strong optical fiber transmission network. The construction of the optical fiber transmission network will cost a lot of money and time.

 

As a latecomer, BT is competing with the three major operators in China, and at the same time, the construction of optical fiber transmission networks and mobile communication networks is very difficult. It must first build a fiber-optic transmission network in the domestic market. However, it is easy to start from zero. It is necessary to know how much China Mobile has a certain foundation. Later, China Mobile merged China Railcom, but it still took nearly ten years. Time is close to half of China Telecom.

 


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In fact, the 4G network built by BT in the UK is far from the three major operators in China. The subway in the UK cannot be connected to the 4G network. There is no 4G network in the complex areas of the city and in the remote rural areas. Compared with China Mobile's well-established 4G network, there is a big gap between it and the entrants facing the three 4G networks of China's three major operators. BT estimates that it has its own dim sum.

 

In general, no matter from which point of view, BT's entry into the Chinese market will have little impact on the existing three major operators. Perhaps it is more appropriate to choose one of the three major operators in China. The choice, which will avoid huge investments, and at the same time achieve its purpose of serving its customers.


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