Changing the leadership of the three major operators will not help break the monopoly

When a cadre serves in a certain enterprise for a long time, especially when the top leaders are all from the same unit and promoted by the previous top leaders, it is easy to form factions or interest groups, which will lead to corruption. In addition to corruption, problems such as a single working environment and limited vision are also inevitable. In addition, long-term service in a certain position is more likely to lead to a situation where one person has the final say, which is not conducive to the company's openness to communication and democratic decision-making. In short, when the top leader of a unit is re-elected for a long time or "inbreeding", this unit, especially the enterprise, is basically self-contained and lacks vitality.
China's economy is now in a period of transition, and so is China's telecommunications industry. Although the three major operators still made an average of about 416 million yuan a day in the first half of this year, their profit levels have generally declined, and the decline in marginal benefits is unstoppable. China Mobile's semi-annual performance report shows that its net profit in the first half of 2015 was 57.3 billion yuan, a slight decrease of 0.8% year-on-year. The day before, China Telecom's first-half performance was even more bleak, with a 4% drop in net profit. China Unicom's service revenue in the first half of the year fell 5.3% year-on-year.
Under this severe situation, the three major operators all have the corporate needs to change their own marketing situation and create profits and increase profits. In this sense, replacing the top leader to create a new situation is also a requirement of the three major operators themselves.


On a larger scale, China's economy is undergoing transformation, and a large part of this transformation is "Internet +". However, China's Internet charges have not been reduced for a long time, and the Internet speed has not been increased, which has affected the rapid development of "Internet +". The government's prime minister has to urge China to accelerate Internet fee reduction, and the progress is still slow. The key is that the telecommunications industry is not fully competitive, and even to the point of almost no competition.
Now, will the collective change of leadership of the three major operators be beneficial to strengthening competition in the telecommunications industry? Unfortunately, I am afraid that far from being beneficial, it will actually lead to less competition in the telecommunications industry.
Looking at the industry history, the top management of the three major operators has been swapped for more than a decade, and the top leaders have been rotated almost every four years. As a result, the original starting point of the split of the telecommunications industry - the purpose of forming an internal mechanism of healthy competition - has not been achieved, and the situation of the three major operators dividing the telecommunications market has become unbreakable.
From the perspective of the enterprise, the longer a person stays in a certain enterprise, the deeper his or her attachment to the enterprise, the tighter his or her interests are tied to the enterprise, and the stronger his or her sense of mission is. The longer a top leader stays in a certain enterprise, the more he or she regards the enterprise as a part of himself or herself, and the more motivated he or she is to pursue the profits of the enterprise and the more he or she is to compete with peers. Objectively, this is conducive to state-owned enterprises returning to their essence—pursuing profits as the first driving force of the enterprise, and is conducive to corporate competition in the telecommunications industry. On the contrary, the top leader always rotates among the three major operators and government regulatory departments, which easily forms a community of interests in the government agencies and government-owned monopoly enterprises in this limited industry, eliminating the already limited competition.
From the macro-development trend of the telecommunications market, the separation of basic network construction and service operation will become a trend. Tower companies will control all network resources, while operators will focus on improving operation services. This will be conducive to the formulation of unified standards in the future 5G era, avoiding duplication of construction, and will also help cut off the natural conditions for the current three major operators to become monopoly enterprises by using natural channels, creating market conditions for full competition in the telecommunications industry.
Today, the overall macro situation and the development of the telecommunications industry provide the conditions and need to introduce more operators and social capital to break the monopoly of the three major operators.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.