As a mage, I just want to pursue the truth

Chapter 342 Compromised Operators

China's three major operators are making money simply by doing nothing.

Backed by the country's infrastructure and essentially controlling a monopoly on the market, China's three major operators are living a very comfortable life.

Take Malaysia, where Zheng Li’s previous home was, for example. Malaysia is a country with a population of 30 million and has more than 20 telecommunications service operators.

China has a population of 1.4 billion and only three operators.

Of course, the advantage of the concentration of the telecommunications industry is that these operators have particularly strong bargaining power and are like bosses in front of hardware manufacturers.

Whether it is Huawei, ZTE, and H3C from China, or Ericsson and Nokia from abroad, these communication equipment manufacturers are like grandsons in front of the three major operators.

The prices that Chinese operators can get are definitely lower than the normal market prices.

Not only are the hardware equipment cheaper, but the salaries of professional operations personnel are also lower than those abroad.

Compared with foreign telecom operators, domestic telecom operators have much lower costs.

Taking Deutsche Telekom, the largest telecommunications operator in the Europa Union, as an example, their operating income in 2021 was 1087.94 billion euros and their net profit was around 42 billion euros.

China Telecom's revenue was 4 billion RMB and its net profit was 342 billion RMB.

The net profit to revenue ratio of China Telecom is around 6%, while that of Deutsche Telekom is less than 4%.

The difference mainly comes from the lower operating costs of Chinese telecom operators.

However, ordinary people do not enjoy the benefits of low operating costs. From the perspective of currency purchasing power, China's communication charges are not cheaper than those in other countries.

This was the first time for the chairmen of the three major telecom operators present here to have such a feeling. One must know that it was never their turn to personally take part in such procurement negotiations before.

Usually, it only takes someone at the vice president level to handle it.

Which of the previous communication equipment manufacturers dared to speak like this in front of them?

They also worked their way up from vice presidents, and basically the price is whatever they say.

Open bidding is just a formality.

“To put it bluntly, we are also serving the country. We need to maintain employment for so many people in the entire telecommunications industry, and at the same time we have to hand over a portion of our profits to the country.

If we have to contribute 30% of the bio-communication fees to Kechuang Biotechnology, our overall operation will become quite difficult. "

This kind of speech is somewhat morally blackmailing, and there are so many loopholes in the speech that Li Miaomiao doesn't want to complain.

When Li Miaomiao was studying for her MBA, she took a special and systematic course on logic. She felt that the course was of great help to her in thinking through the essence of things.

As soon as the other party finished speaking, Li Miaomiao immediately stared at the loophole and refuted:
“First of all, this is a business action, not an administrative order.

Since it is a business activity, no matter whether I am negotiating with state-owned enterprises or private enterprises, I have only one goal, which is to maximize profits.

Even when I was talking to you, I was not following the principle of profit maximization.

I believe that no matter if I talk to Huawei, Tencent, or Ali, these Internet giants, the other party will agree to 50% of the profits, let alone 30%.

The reason why I proposed 30% is that I have already made a certain concession.

Secondly, you mentioned that the telecommunications industry maintains employment for so many people. Are biological communications and traditional communications two conflicting things?

Biocommunication is equivalent to your other business project. At least in the short term, the traditional communication industry will not be eliminated.

You also need employees to keep the traditional communications industry running.

With the help of biocommunication, you have five to ten years of buffer time, which can be used to arrange employees who may be optimized.

At worst, layoffs in state-owned enterprises are not uncommon.”

The other party is somewhat morally blackmailing me, roughly meaning that you eat up so much of the profits with just one mouth, and my profits are not enough to support so many people under me.

"And we also pay taxes to the country. The amount of taxes paid by Sinovation Biotech over the years is no less than that of the three major operators."

“If you can accept this condition, then we can continue the discussion. If you cannot accept this condition, then I will discuss with other companies.

I think you can just wait and see. Anyway, in the next one or two years, we will only be involved in the biocommunication operation services in Suzhou area.

You can wait and see the results of other companies before making a decision.”

Seeing Li Miaomiao's firm stance, China Mobile's chairman took the lead in saying, "We can accept this price."

To be honest, the so-called tradition of these operators and the so-called fact that such things have never happened before are simply because their profits are not big enough.

When China Unicom signed an exclusive sales agreement with Apple, it also made concessions.

Later, in order to compete for these high-end users, China Mobile provided card cutting services and set up special iPhone customer service seats in local business halls.

For these telecom operators, compromise is commonplace in order to compete for profits.

Seeing that the joint pressure from the three operators was ineffective, Li Miaomiao took an extremely tough attitude and refused to give in at all.

Thirty percent of the income, and he refused to give up at all.

With the words of the chairman of China Mobile, the alliance among the three operators collapsed instantly.

Everyone hopes to win the operating rights in Suzhou based on their own abilities.

The world's first operating rights for bio-communication technology, serving the world's most advanced virtual reality equipment.

In this new monopoly track, whoever can take the lead will not have to worry about revenue and profits for at least the next 20 years.

With the cooperation in Suzhou as a starting point, subsequent negotiations on other regions can be carried out more easily.

The first-mover advantage is comprehensive, from the position in consumers' hearts to the building of brand power, and then to the relationship with partners.

"Sit down. How do you feel about the tour?"

After completing the negotiations with the three major operators, they all expressed their willingness to accept Kechuang Bio's conditions.

The Chinese government is also happy to see this condition.

The meat is in the pot and won’t go bad.

From a national perspective, all of Kechuang Bio's revenue is invested in research and development, and Kechuang Bio does not like to invest overseas.

Therefore, no matter how much profit Kechuang Bio makes, the funds, talents and technology are all in China.

What reason is there not to support such a company?
Not to mention that Zheng Li is behind Kechuang Bio.

Before coming, the chairmen of the three major operators had been informed by their superiors that this was a purely market negotiation.

They tried to put pressure on, but they were just trying.

Finally, the Gusu area was divided up by the three major telecom operators according to specific administrative divisions.

All subsequent negotiations on specific details were left to the deputy general manager, and Li Miaomiao only needed to review the final results.

She needed to communicate with Chen Ran in the afternoon and hear his ideas on creating a virtual world.

Chen Ran was a little reserved: "It's shocking, but it's different from the scientific and innovative creatures I imagined.

Whether in terms of personnel quality, personnel scale or the entire industry span, Ke Chuang Bio is a well-deserved giant.

Ke Chuang Bio has the scale of a giant, but in terms of the working atmosphere of its employees, it has the vitality of a startup.

A very powerful company.

Because I started my own business, I still have a superficial understanding of management. The more people there are, the harder it is to manage. The difficulty of managing 10,000 people is not just doubled compared to the difficulty of managing 100 people, it is exponential growth.

Mr. Li, I sincerely admire your ability to manage Kechuang Biotechnology so well."

Li Miaomiao: "Everyone likes to hear nice words. I know my own management level very well. It's not bad, but it's not very good either.

The fundamental reason why Ke Chuang Bio's management is so good is that the company is in an upward range.

It is still expanding. An expanding enterprise can have sufficient and sufficient channels for advancement, which can stimulate the vitality of employees.

From a management perspective, companies in upward channels are the easiest to manage.

The fundamental reason behind this is that the technology developed by Zheng Li allows Ke Chuang Biotechnology to continuously expand its territory.

Of course you have contributed to the success of Chihu Entertainment, but Zheng Li’s technical support behind the scenes is the decisive factor.

But you've done a good job. The gaming industry is a creative industry. If you don't have the skills, you won't be successful even if you have the technology.

There are too many games in this industry that have exquisite graphics but are not popular among players.

So in view of your performance, we decided to reward you with 5% of Red Fox Entertainment's shares.

You can share this 5% with others or keep it all to yourself.

This is your freedom.

I gave you 5% not because you said something nice about me, but because you really run Red Fox Entertainment very well."

Li Miaomiao even made a small joke at the end.

After listening to it, Chen Ran felt that it was much better than he expected.

After all, the business was started at zero cost back then, and I didn’t invest any money at all. The initial funding and core technology were all provided by Zheng Li.

To put it bluntly, he is just a senior manager.

In many companies, even the founding team that invested money in the early stages of the company’s listing holds less than 5% of the shares.

Chen Ran was already very satisfied with this number.

“Thank you Mr. Li and Mr. Zheng for your support.

If it weren’t for Mr. Zheng’s financial support, there would be no Red Fox Entertainment.”

Li Miaomiao interrupted, "Okay, without further ado, Red Fox Entertainment will need to move most of its operations to Gusu.

What other projects do you have on hand now? "

Chen Ran replied: "There is no project at the moment, it is still in the early stages of preparation."

Li Miaomiao: “Okay, then let’s not do it for now.

The games that you opened before require some people to stay and continue to maintain and operate them. These people can stay in Dongguan, and the others can come to Gusu.

In addition, after you join the Kechuang Biotechnology system, your most important task is to create a virtual world together with future technology.

A true virtual world.

Kechuang Biotechnology's virtual reality device needs to be launched this fall, and you only have nine months.

During these nine months, at least the main world and two game worlds need to be created.

Time is running out, so you can start preparing.

When you come to Gusu, we will provide you with Ke Chuang Bio's virtual reality equipment for you to experience.

Because the work you need to do is very sensitive, you can only work on-site for the time being, and you have to sign a very strict confidentiality agreement.

After the project is completed and officially launched, employees who want to return to Dongguan can go back and work remotely.

Many of our employees fly around the world.”

After the split of Kechuang Future, two companies were separated, one called Future Technology, which mainly produces VR systems, and the other called Kechuang Intelligent Manufacturing, which mainly produces VR hardware.

There was actually a company called Future Technology before, with a registered capital of 100 million yuan, but a paid-in capital of only 10,000 yuan, and zero insured persons.

The company was founded in 2015 and made a fortune by selling its company name to Ke Chuang Biotechnology.

It's like picking up money while lying on the ground.

"Mr. Li, nine months, two games, and the main world, this time is too short. It's not enough.

Generally, it takes us at least two years to make a game.

This is already the most rushed time, and almost everyone in the project team is working around the clock.

A game is developed every three months, and it is a virtual world that is even larger than VR. With the name of "world" in it, it must not be small.

Three months is definitely not enough.

It is definitely impossible to create a game world that meets the status of Kechuang Biology and meets the expected goals of Kechuang Biology in this time."

When Chen Ran heard that it would take nine months to complete the construction of three worlds, his scalp went numb.

When doing something, he likes to put forward the difficulties first, not to mention such an impossible task.

Li Miaomiao explained: "Although I am not a game practitioner, I still know something about game development.

Since we have set this time, we naturally have some considerations.

You have to know that building a virtual world is completely different from traditional programming.

And during this period, artificial intelligence will assist you.

Let me remind you now that the most important thing is creativity.

Building a virtual world requires creativity and rigorous structure, which are all tasks related to game planning.

No actual game development required.

You understand that programming will all be done by artificial intelligence."

Chen Ran smiled bitterly and said, "Even so, three months is still not enough. The workload for the art resources of a world will take more than three months."

Li Miaomiao: “Art is also different from traditional game development.

You don't need to worry.

When you come over and get the hang of it, you will naturally understand that three months is definitely enough.

I can't tell you too many specific details now.

In short, complete the process as quickly as possible. If you need any assistance, such as workstation, office location, internal system account, etc., go directly to the finance department and I will let my secretary take you to complete the necessary procedures. "

After the conversation, Chen Ran left Li Miaomiao's office in a daze. Only then did he realize that he was really going to participate in building the virtual world.

For a gamer, this is like a dream.

From what Chen Ran just heard, it seemed that other game manufacturers would not be considered in the system software of the virtual reality device.

(End of this chapter)