【正文】 nd LMDS where logical Seek strong local market share, especially in new data services growth areas Differentiate from China Tele by superior services, quality, responsiveness Build strong local team to enable fast service response Emphasize “end to end” work ownership and management Assumptions: SH, BJ, GZ, and SZ business districts as targets for the near term These account for the vast majority of business tele demand Need to set specific estimates for timing and sequence of deployment Assume that CNC will have access to key city ROW, such as subway systems Will need specific assumptions about the ease and cost of hooking up buildings Assume that primary emphasis will be on FTTB, but that LMDS can play an important role, especially in initial deployment and in secondary cities Will need specific assumptions about timing of adding secondary cities 8 China Net The Boston Consulting GroupConfidentialDestroy by Shredding4503405Interim14Dec99TZDgxSHIINTERNATIONAL GATEWAY BUSINESS Principles: CNC will be one of few players with a full international license Vital to enable CNC to provide endtoend services, global data services, and higher margin IDD service HK gateway link may be strategically important Assumptions: HK as one of the key location for international connection a major traffic destination a major relay location International voice remains highly profitable segment in medium term future Expect high growth together with steep price drop in international services Actively plan ahead for joining international suboceanic cable consortium來自 .... 中國最大的資料庫下載 9 China Net The Boston Consulting GroupConfidentialDestroy by Shredding4503405Interim14Dec99TZDgxSHIREGULATORY STRATEGY Principles: Must actively lobby for favorable regulatory decisions, together with shareholders provide regulators with international benchmarking for best practices align CNC objectives with fair petition, and public interests have effective senior management focus on lobbying issues Be careful about mitting investment if regulatory issues too uncertain Ensure CNC strategy addresses national economic development priorities Pay careful attention to managing relations with China Tele Expected WTO in 2023 will imply greater opening of the market in the future Assumptions: At least a 23 year window when CNC can continue to enjoy favorable policy treatment, while also working to straighten out regulatory issues at local level Many key regulations remain in grey areas, where CNC can play a role in shaping the policy Will need to make specific assumptions on a number of regulatory issues, and develop several scenarios Assume that CT and Uni are the only full service petitors, but several niche players WTO will introduce FDI into China’s tele market by 2023, but infrastructure play remain tightly controlled (still limited petition) until 2023/5 may be opportunity for some form of partnership with foreign telcos 10 China Net The Boston Consulting GroupConfidentialDestroy by Shredding4503405Interim14Dec99TZDgxSHICOMPETITIVE STRATEGY Principles: Focus on the best service quality, supply what customers’ need, avoid peting on price Build both “highways” and “tollbooths” Prepare for rapidly changing industry structure Be careful in positioning toward China Tele: plementary and addressing unmet needs growing the whole market The only viable alternative to China Tele for carriers The only true “end to end” work across China, with clear central management Assumptions: Technology leads to continual change in industry structure The decentralized nature and business oriented behaviors of China Tele enables CNC to partner at the local level High opportunity for CNC to fill China Tele product/service backlog Uni will be a threat to start a “price war” Various niche players emerge in later years, more threat than (carrier) opportunity for CNC 11 China Net The Boston Consulting GroupConfidentialDestroy by Shredding4503405Interim14Dec99TZDgxSHIMARKETING STRATEGY Principles: For local access, will target medium and large businesses in targeted buildings For backbone, provide carrier services For international, support other businesses and also offer IDD and refiling, etc. In all areas, emphasize quality, service, end to end, etc. Get a few key customers early。 number portability may take another 12 years at least CNC will have LMDS spectrum CNC anticipates a wellintentioned regulator, with varied degrees of control over local incumbent practice None of these assumptions are “guaranteed。 price petitiveness vs. CTCasebycase local coordination and negotiation delay local access buildout。 BCG analysis來自 .... 中國最大的資料庫下載 16 China Net The Boston Consulting GroupConfidentialDestroy by Shredding4503405Interim14Dec99TZDgxSHIKEY LICENSE ASPECTS AND IMPLICATION TO CNCFull Service and InternationalValue added servicesownershipGeographic scopeDurationlicense feesPerformance targetsTechnologyKey Aspects? Number of licenses tightly controlled: at most 3 in 2023, including CNC? CNC full service license expected 1Q 2023? International licenses tightly controlled: at most 4 in 2023, including CNC? CNC IGW license expected by EOY1999? More than 4 valueadded service licenses possible? Controlshare foreign ownership not allowed in basic tele and public data transport services? Up to 50% of FDI in value added service providers? Intra provincial services under control of provincial TABs? No limit? Regulation will require license fees? Regulation will specify clear service buildout targets? Regulations will be technology neutral? But will give preference to new technologyAssumptions? Current regulation only cover interconnection between 7 types of licensed