Industry commentary, the two companies have complementary business complementarity and strong synergy, which may bring hope to Datang Telecom, which has suffered from continuous losses for many years. However, the effect remains to be seen in the internal integration of the enterprise and the effect of business convergence. In the 5G era, with the experience of Datang Telecom participating in the development of 5G standards and the advantages of FiberHome's 5G optical transmission, the merged new company or the strength to compete with Huawei in 5G, China's 5G competitiveness will be more prominent.
Once the industry giants were trapped in a quagmire
Datang Telecom, which used to be the same as ZTE and Huawei, was a smash hit 20 years ago. Its Datang Microelectronics independently developed the first public telephone IC card in China, and subsequently developed the first mobile phone SIM card in China. Breaking the technological monopoly of foreign companies, and winning the first place in the comprehensive evaluation of China Mobile SIM card suppliers for many years, it can be described as unlimited.
However, time has passed, how the former telecom giants have been trapped in the quagmire of years. According to the financial report data, the company's net profit has started to decline in an avalanche from 2016. In 2017, the pre-disclosure of the huge loss of 20-24 billion is even more. From the beginning of January 31, 2018 to April 20, 2018, Datang Telecom has released 5 announcements of 2017 annual performance pre-loss announcement and delisting risk warning notice. To the latest financial report It shows that the loss exceeded 2.6 billion yuan, and said that the stock may be subject to the delisting risk warning by the Shanghai Stock Exchange.
The reason is also due to the adverse effects of Datang Telecom's multiple transformations and investment expansion business areas.
First, the transformation of the mobile phone terminal field. When the traditional communication business can no longer maintain the company's development. Datang Telecom entered the consumer terminal market. From 2008 to 2012, Datang Telecom successfully won Shanghai Yousi, Introduced a mobile phone called 'U2', a hand-written GSM dual-band mobile phone. Recently, the news related to Yousi was that Datang Telecom sold 100% of the equity of Yousi at the price of 332 million yuan last year. Reverse the situation of its losses.
Second, the rough road of the integrated circuit market. Datang Telecom focused on the field of integrated circuit design in 2014, increasing the investment in chips. However, the competition for consumer products and chips in the market has been quite fierce. Integrated circuits, chip design It is also an industry that requires a lot of money and is technically difficult. Datang Telecom’s continuous losses in recent years have also confirmed how bumpy it is on this road.
Business complementarity or reshaping 5G faucets
Different from Datang Telecom's earnings dilemma, the company's Fiberhome Communications, although it is also a listed company under the research institute, has developed very successfully. Its revenue and profits have increased 10 times in 10 years, growing into the world. The leader in the field of optical communication, this kind of achievement is really what Datang Telecom is eager for. Now, the new president of Datang Telecom is the original chairman of Fiberhome Communications, and Datang Telecom really hopes to use the experience and mechanism of the development of Fiberhome Communications. Bringing a twist to your own business.
From Datang Telecom itself, it fully participates in the formulation of 5G international mobile communication standards. In the 5G technology research and standard competition, Datang Telecom Group is shaping large-scale antennas and beams, new multi-site technology, and ultra-dense networking. , vehicle networking, channel coding new mobility management, TDD dynamic frame structure, 5G core network architecture, 5G CU/DU architecture design, etc. 5G standardization field is at the international advanced level, and many technical solutions enter the international core standard specification.
Wu Chao, chief analyst of CITIC's communications industry, believes that at the business level, the business synergy between Fiberhome Communications and Datang Telecom is very high. Datang Telecom has been strong in the wireless field, and Fiberhome Communications is accessing cable. One side is more powerful. Therefore, the complementarity and synergy of the business is likely to reshape a large enterprise that can compete with Huawei, ZTE, Nokia and other factories.
5G competition can not be defeated and needs strong enterprises
Nowadays, global communication giants are accelerating the arrival of the 5G era. With the current 5G development process, China will have greater opportunities and voice in the 5G era. This is mainly because China has two very important basic conditions. It is already accumulated on the basis of technology. With Huawei, Datang Telecom-led communications companies have laid a large foundation in the research participation of 5G standards, and have advantages in 5G services. Second, there is a very large market, so China even synchronizes Leading the development of 5G is predictable.
But it is undeniable that, besides Huawei ZTE, in the 5G market, Qualcomm, Samsung, and Apple are still not to be underestimated.
Therefore, the merger of Datang Telecom and Fiberhome Communications is on the one hand the implementation of the spirit of the State-owned Assets Supervision and Administration Commission to lead the central enterprises to become bigger and stronger. On the other hand, China's leading 5G market competition also needs to optimize the integration of resources to rebuild a strong enterprise with the same level as Huawei. Participation together. It is foreseeable that with the landing of Datang Telecom and Fiberhome Communications, China will be more competitive in the 5G market.