Unknowingly, the Iron Tower Company has been established for more than two years. Despite the heavy responsibility of the joint construction and sharing of communications infrastructure and the pilot reform of state-owned enterprises, the controversy surrounding the tower company has not stopped. Yang Jie, who was then the president and chief operating officer of China Telecom, publicly stated that “the lease fee for telecom payment to the tower company is 20% higher than the operation and maintenance of the towerâ€, and repeatedly mentioned in China Unicom’s multiple quarterly profit warnings. The "increased use of iron towers" and the report that the tower rental costs are "high" have been heard.
On December 18, 2016, the CCTV Financial Channel “Dialogue†invited Bai Yingzi, Director of the State-owned Assets Supervision and Administration Commission of the State Council, Wen Ku, Director of the Information and Communication Development Department of the Ministry of Industry and Information Technology, Liu Aili, Chairman of the China Tower, and executives of the three major operators. communicate with. Interestingly, although the chairman of the company, Liu Aili, has always stressed that the establishment of the company has reduced the cost of network construction for the three major operators. However, when the moderator confirmed the matter and the three major operator executives, what was obtained was the collective silence of the operator bosses. With the broadcast of the program, the naked face of the operator has not only become a smile for netizens, but also caused people to question the tower company again: "What happened to the tower company?"
What value did the Tower Company create?
Competition between operators has always been fierce. In the case of tariffs and customer service converge, the competitiveness of operators depends largely on the coverage level of the network. With the upgrading of communication technologies, operators need a large amount of site resources when building new networks. Due to the difficulty in obtaining sites and high rental costs, some vulnerable operators often do not have the ability to build a well-established communication network. The exclusive lease agreement signed by a strong operator is even worse. In special occasions such as subways, highways, underground parking lots and elevators, it is not uncommon for owners to ask for prices and sign exclusive agreements.
With the establishment of the tower company, these problems have been significantly improved. Lu Hao, deputy general manager of Fujian Tower, once told the author that the establishment of the tower company not only allowed the weak operators such as China Unicom to use the mobile tower resources, but also improved the negotiation ability of the three major operators. In the past, inaccessible areas such as subways, highways, and government office buildings, the owners can get larger discounts through group negotiations and government support. In other words, the establishment of the tower company not only improved the network coverage level of the operators, but also reduced the cost of network construction and maintenance. It can be said to be "two birds with one stone."
Why did the tower company become the target of public criticism?
Now that the problem has come, the establishment of the company has reduced the cost of network construction for operators. Why are the executives of the three major operators not thinking so in the "Dialogue" column of CCTV's financial channel?
Iron Tower has long been reluctant to disclose its pricing strategy. Regardless of how everyone evaluates on the Internet, the company has never responded. However, through the developed Internet, the grassroots employees of the three major operators have announced the pricing standards of the company.
According to the information that the author and the Deputy General Manager of Fujian Tower, Lu Hao, have learned, when a certain tower resource is used by only one operator, the tower company will charge the rental fee according to 100% of the initial price; if two operators use the tower , each family pays the rental fee at 80% of the price; if the three use it, each family pays the rental fee at 70% of the price. Especially for the original builders of the tower, you can also enjoy an additional 5% extra discount. (Assuming that an iron tower is built by mobile, mobile can enjoy an additional 5% discount when renting this tower.) It is easy to see that China Mobile, which has the largest number of towers, can enjoy more discounts. For telecommunications and China Unicom, which have a relatively limited number of towers, the rental costs are naturally relatively high. The establishment of the Iron Tower Company, although solving the problem of base station addressing of the two operators of China Unicom, has also brought heavy cost pressure to the two operators.
Due to the high cost of rental of the tower and the lack of support and maintenance, operators in many localities have expressed unfavorable views on the company on the Internet. In the face of these accusations, the company is not only reluctant to face these problems, but exerts pressure on operators through various administrative means, requiring relevant leaders to severely punish employees who express different opinions. What's more, even under the pressure from the top management of the Iron Tower, Yang Xiaowei, the general manager of China Telecom, directly demanded punishment or even expelled the situation of grassroots employees who expressed their opinions. With the widespread spread of these negative news, there is a huge gap between the operators and the tower company. Even if the iron tower company explained it anymore, it would not be able to restore the operator's disappointment with the tower company. The dismantling of the "Dialogue" program became a necessity.
Where is the future of the tower?
On the one hand, the cost pressure brought by the rapid construction of the network, and on the other hand, the operator's dissatisfaction with the high rent and public opinion control, the tower company took the contradiction toward 2017. According to Liu Aili, chairman of the company, the top priority of 2017 work is listing. If a newly established company wants to go public, it will naturally need to meet a variety of preconditions, and the most important one is to make profits for three consecutive years. Since the establishment of the Tower Company in 2014, there has been no other source of profit other than the income from the rental site and third-party shares. The so-called charging pile project only stays in the standard setting and cannot be realized in a short time. Under the pressure of listing in 2017, the tower company must maintain relatively high rent standards. Using the rental income of the three major operators to maximize their profitability, leaving a beautiful financial report for the 2017 listing.
After two consecutive years of losses, the 2016 Tower Company finally turned a profit. Once the listing is successful, the company can raise enough funds from the capital market to reduce financial liabilities, improve operational capacity, and leave room for price reduction. On the other hand, the listing of the tower company will bring enough profits to the three major operators as shareholders, thus alleviating the long-standing contradiction between the operators and the tower company. Before the listing of the tower company, operators had to continue to bear relatively high rental costs.
to sum up:
At the end of the program, Wen Ku, director of the Information and Communication Development Department of the Ministry of Industry and Information Technology, said: "The tower industry is not the only one in China. If it does not work well, there will be a second one." The tower company is not irreplaceable. The words of Secretary Wen also sounded the alarm for the tower company. How to solve the problems that the operators and employees care about, how to not harm the vital interests of the people, the test is the wisdom of the tower company.
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