Restart life

Chapter 330 0327 [Is it a case of "whoever does the dirty work gets burned"?]

The theme of the first Mobile Internet Conference was "Interactive University Campus, Popularizing Mobile Internet".

To put it simply, it's a bunch of mobile phone hardware and software manufacturers and internet companies trying to figure out how to tap into the campus market for mobile internet access.

Especially the college student market!

Chen Guiliang might not understand other things, but he's very knowledgeable about the college student market. So he was also invited to give a keynote speech.

The first speaker to deliver a keynote speech was Huang Xiaoqing, the dean of the Mobile Research Institute.

This person was formerly the Chief Technology Officer of Starcom, and was only invited by the mobile company this year to head the mobile R&D department. He has made significant contributions to the convergence of telecommunications, broadcasting, and the internet.

Later, he resigned to start his own business, tinkering with robots and cloud-based brains.

Huang Xiaoqing's speech primarily set the tone for the conference. He emphasized that China's mobile internet market is still small and in the stage of collaboratively expanding the pie. Companies shouldn't compete to the death; instead, they should work together to grow the market.

The director of the mobile research institute had barely finished speaking when he was contradicted by the next speaker.

Hou Zhiqiang, a member of the Communications Science and Technology Committee of the Ministry of Information Industry, former director of the Institute of Acoustics of the Chinese Academy of Sciences, former chairman of Kejian Mobile, and current chief scientific advisor of China Netcom, criticized China Mobile for monopolistic practices as soon as he took office.

Everyone couldn't help but look at Huang Xiaoqing.

Huang Xiaoqing was both amused and exasperated. He wasn't in charge of the mobile company's operations; he was just the head of its technology research and development.

In fact, China Mobile is about to adjust its policies.

While still maintaining pressure on companies like China Unicom, the government will concede profits to its partner companies. This is because many companies have already succumbed to the pressure after the government's crackdown on SP (Service Provider) businesses.

After the adjustment next year, the revenue sharing ratio of Mobile Dream Network will be as follows: channel partners will receive 45%, product manufacturers will receive 30%, and the remaining 25% will go to Mobile.

Before the adjustment, moving yourself was enough to take away more than 60%!

The fact that China Mobile made such a large concession is not due to a change of heart, but rather because if they didn't offer concessions, everyone would be doomed.

This is a major positive development for ByteDance's SP (Service Provider) business, including mobile Weibo.

The third speaker was Kan Kaili, a professor at Beijing University of Posts and Telecommunications, whose speech also criticized telecom operators.

Moreover, they didn't just criticize China Mobile; they criticized all the telecom operators.

Chen Guiliang was delighted to hear this; these scholars were indeed amazing.

Professor Kan was talking about WiFi technology, which is currently demonized as a "fixed network supplement" and is being collectively rejected and suppressed by the major operators.

Professor Kan, however, believes that WiFi is the mainstream access method of the future.

His main point, while already realized in the future, is too radical in the present: mobile operators should only provide network services, leaving other services and applications entirely to the market.

"Clap clap clap!"

After Professor Kan finished speaking, Chen Guiliang and others immediately applauded to show their support.

Representatives from other internet companies were also applauding enthusiastically.

Everyone has suffered under the whims of telecom operators, especially China Mobile's mobile network, which is notorious for its ruthless exploitation of customers.

Making money is one thing, but China Mobile's mobile network also interferes in businesses' operations. This is especially true for WAP websites; to gain traffic and exposure, they have to pay promotion fees to China Mobile.

If you don't pay promotion fees, although you can join the DreamNet (you must pay an entry fee and sales commission), users won't be able to find your website link on the DreamNet.

When it comes to custom ringback tones, the mobile company decides who gets more exposure.

Next up was the Director of Nokia Greater China.

Then came the Intel representative. This guy was clearly Chinese, and the audience was all Chinese, yet he insisted on giving a speech entirely in English.

Chen Guiliang could understand it, but he was very unhappy with it.

One scholar or executive after another took the stage, and Chen Guiliang listened attentively to them all. This was particularly helpful for him to familiarize himself with current national policies, industry trends, and the movements of mobile phone manufacturers.

Among internet companies, Chen Guiliang was the first to take the stage and give a speech.

Because he owns the campus network, and the theme of this conference is how mobile internet can open up the campus market.

"Mr. Chen is awesome!"

Before Chen Guiliang could even speak, a group of students started jeering.

Those were all students from Peking University and Beijing University of Posts and Telecommunications, and all of them were from the student union and school organizations. Ordinary students couldn't get tickets to the event.

Chen Guiliang didn't follow the prepared script, but instead asked a question on the spot: "Since you say I'm awesome, it seems you're all my fans. Do you guys use ByteDance's WAP website? Especially mobile Weibo."

A Peking University student chimed in, "We'd rather die than use it!"

"Hahaha!"

All the other students laughed.

Representatives from hundreds of organizations and companies at the scene all looked at Chen Guiliang in surprise—this guy is just too popular with college students!

Intel, Nokia, Motorola, and other manufacturers have decided to increase their advertising efforts on campus networks.

Chen Guiliang said, "It seems you guys are also fake fans who just want to freeload. What's your slogan?"

"Getting something for free makes me happy!"

A group of students shouted out their secret code while laughing.

Chen Guiliang finally returned to the topic of his speech: "Ladies and gentlemen, as you have probably seen, to communicate with students, you need to have common topics with them. Especially when it comes to getting these freeloaders to spend money, you need to know what they are thinking, what is popular among them, and what their needs are..."

"College students have always been at the forefront of the times; they are willing to try new things. Mobile internet access is one such new thing, and the recently released data on Chinese mobile internet users is truly astonishing. It has reached 9200 million, a direct increase of tens of millions compared to last year. It's skyrocketing..."

"However, the percentage of active users is still very small, and the vast majority of people do not have the habit of using mobile internet. Among these 9200 million mobile internet users, many are initially interested in something and then go to pay for mobile internet access... After trying it once or twice, they may not pay again for more than half a year..."

"Why? Because mobile internet is too expensive!"

"To expand the mobile internet market, lowering fees is essential and fundamental to market growth. But if fees are lowered, how will companies profit? Operators like China Mobile and China Unicom must increase their revenue share..."

Chen Guiliang paused to observe the reaction from the audience.

Sure enough, as soon as he stopped, the whole audience applauded.

Both manufacturers and students applauded in support of his statement.

“There’s a term called ‘poor student.’ I’ve been a poor student myself, so I know all too well what it’s like for students. Apart from a few students from wealthy families, most students carefully consider their spending on unnecessary things: Is this really worth paying for? Is it worth eating steamed buns for half a month…”

"Therefore, for the mobile internet market to penetrate the student population, the paid content on websites needs to be worth the money that students are willing to pay... Either provide them with material needs or provide them with spiritual needs..."

"This year's graduation season activities on Renren.com were excellent. Students paid a sum of money when they graduated, and although it was for virtual services, it has value for them for a lifetime..."

"Xiaonei.com will continue to focus on the campus market and provide more mobile internet content... Thank you everyone!"

Amid applause, Chen Guiliang stepped down from the stage.

There are too many speakers, so there is a time limit.

There were five more breakout sessions in the afternoon, with participants from hardware manufacturers, venture capitalists, mobile phone communities, mobile phone businesses, and mobile phone portals. Chen Guiliang naturally participated in the mobile phone community roundtable discussion.

After the meeting, Chen Guiliang went to talk to representatives of the mobile phone hardware manufacturers. It was a brief exchange; they exchanged phone numbers, planning to discuss things more in-depth later.

Next, Chen Guiliang called Pu Yuanbing, the editor-in-chief of "Mobile Phone Circle," and invited him to dinner at a restaurant near Peking University.

Pu Yuanbing was slightly surprised, not understanding why Chen Guiliang had invited him, but he still gladly agreed to the invitation.

Then, he sat on the back of Chen Guiliang's bicycle until they reached the east gate of Peking University before transferring to a car.

"You're the owner of a listed company, and you still ride a bicycle?" Pu Yuanbing asked curiously.

Chen Guiliang explained, “Peking University used to be lax in its management, and cars and bicycles were parked haphazardly on campus. If you drove in, you often couldn’t find a parking spot and would be cursed by students. Next year is the Olympics, right? Peking University has started to manage the problem of haphazard parking. Parking spaces on campus are limited, and you can’t find one even after driving around. With that time, I would have gotten it done by bicycle long ago.”

Pu Yuanbing smiled and said, "That's true."

The two chatted casually along the way and soon arrived at the restaurant in a car.

Chen Guiliang booked a private room and chatted aimlessly while waiting for the food to be served.

Finally, Pu Yuanbing couldn't help but ask, "Mr. Chen, are you busy today?"

Chen Guiliang pressed on: "If I want to manufacture mobile phones, how do I obtain a mobile phone license?"

"You want to make mobile phones?" Pu Yuanbing asked in surprise.

Chen Guiliang said, "I have that idea. But I haven't decided yet, so I'm asking Editor-in-Chief Pu for directions."

Pu Yuanbing quickly dissuaded him: "Don't come in here and fall into the trap. Most of the domestic mobile phone brands have already died, and those that are still alive are barely surviving."

Pretending to be a novice, Chen Guiliang asked curiously, "Isn't the domestic mobile phone market very prosperous?"

Pu Yuanbing shook his head and laughed, "What prosperity? The technical barrier to making mobile phones is getting lower and lower. You can just grab a few people in Huaqiangbei and they can make them. The government issues a limited number of licenses, and many people who can make mobile phones can't get licenses, so a lot of unlicensed black market phones have appeared on the market. What are the consequences of this?"

"What are the consequences?" Chen Guiliang asked, playing the straight man.

Pu Yuanbing said, "In the mid-to-high-end mobile phone market, consumers only recognize major foreign brands. After all, they've spent so much money, they want to buy high-quality products. In the low-end market, there are also many older models from major foreign brands, and countless even cheaper counterfeit phones. So, who will buy domestic brand mobile phones?"

Chen Guiliang said, "It's just that we can't find a niche. There's no room for genuine domestic brands to survive, whether they're high-end, mid-range, or low-end."

Pu Yuanbing said, "That's the situation. Don't get involved in this mess, or you'll all die."

Chen Guiliang continued, "But if I really want to get in, how do I obtain a mobile phone license?"

Pu Yuanbing said, "Who can say for sure? The government issues them in batches. It's possible that a new license will be issued tomorrow, or it might not be issued for another five years. You can just acquire a mobile phone manufacturer that is about to go bankrupt but already has a license."

"Given Editor-in-Chief Pu's understanding of the industry, which company would be the most suitable to acquire now?" Chen Guiliang took out a cigarette and offered it to him.

Pu Yuanbing lit Hua Zi and began to think: "Companies like Bird and Xiamen have been losing money, but they won't sell. They're not giving up; they want to keep trying. There are many small brands, but they lack sales channels. If you buy them, you'll have to rebuild the channels all over again..."

He muttered to himself for a while, then suddenly shouted out a brand: "Shouxin Mobile Phones!"

Chen Guiliang was completely bewildered; he had never heard of this brand before.

Pu Yuanbing explained in detail: "Shouxin is a state-owned enterprise under the jurisdiction of Beijing Municipality. Beijing Electric Control holds nearly 70% of the shares, while Nokia's shareholding seems to be less than 20%. Putian Information Industry (a central enterprise) holds about 10%. The remaining shares are held by Beijing State-owned Assets Management Company. This mobile phone brand has factories, channels, and technology; everything is readily available."

"Are they willing to sell?" Chen Guiliang asked.

Pu Yuanbing said, "Due to continuous losses, Nokia is threatening to withdraw its investment. But they still want to take a gamble, so they are developing high-end mobile phones and have a partnership with the Olympics. But I estimate it's unlikely. Who would buy a domestic high-end phone? No matter how much fame the Olympics brings, it's impossible for consumers to spend thousands of yuan to buy a Shouxin phone. Would you buy it?"

Chen Guiliang shook his head: "I've never even heard of the Shouxin mobile phone brand, how could I possibly spend thousands of yuan to buy one?"

Pu Yuanbing sighed, "Sigh, so Shouxin Mobile is definitely doomed. I don't know what the company's top management was thinking. Their low-end phones are actually of very good quality, but they were stunned by the huge price cuts from foreign brands and the encirclement by domestic counterfeit phones."

"This company also partnered with the telecom company to establish a subsidiary, specializing in system integration for them. They also made customized CDMA fixed wireless handsets for them, the kind often used in rural areas..."

Chen Guiliang laughed and said, "It's probably because the wireless landline installed in my rural hometown was manufactured by Shouxin. It's quite a coincidence."

Pu Yuanbing shook his head repeatedly: "These wireless landlines, specifically designed for the rural market, sold quite well last year, but not this year. Farmers aren't stupid. With mobile base stations being deployed and mobile phone prices plummeting, who would buy a landline from China Telecom when they can buy a mobile phone for the same price?"

"So, Shouxin's business has completely failed?" Chen Guiliang said.

Pu Yuanbing nodded: "Their current development of high-end mobile phones is a last-ditch effort to see if they can sell high-end models during the Olympics. If the high-end mobile phone business also fails, they will definitely consider selling the mobile phone business, at most retaining some business with the telecommunications company."

"Approximately how much will it cost?" Chen Guiliang asked.

Pu Yuanbing laughed and said, "If you want to buy it, you can probably buy it for 1 yuan. But you'll have to help deal with the debts and a bunch of state-owned factory workers."

Chen Guiliang said, "I must be crazy to get involved in such filth."

Pu Yuanbing was very knowledgeable about the domestic mobile phone industry chain. He winked at Chen Guiliang and said, "The factory is in Shunyi xxx, the land is very valuable. They might not even sell it to you, other companies will definitely be eyeing it."

Chen Guiliang was tempted.

The value of land in his eyes is completely different from the value of land in Pu Yuanbing's eyes.

Because Chen Guiliang knew that the area would develop rapidly.

Chen Guiliang didn't know the specifics of how it developed; he only knew that it was developing quite rapidly.

First, GLP acquired a nearby plot of land for 22 billion yuan and built an aviation logistics park. Then, Lenovo moved its Beijing R&D center there, attracting more than 20 chip companies to relocate.

Then, the Wangfujing Department Store bonded warehouse was established, and cross-border e-commerce businesses enjoyed the policies of the comprehensive bonded zone.

Then, the subway was built there too...

Three or four years later, the land could appreciate in value by nearly 20 times!
Moreover, it is adjacent to a group of high-tech companies that are about to move in.

Pu Yuanbing thought it was already quite valuable, but little did he know it would become so valuable.

Dealing with Shouxin's debts and resolving layoffs are relatively minor issues. There might be some trouble, but it can all be managed.

The premise is how far in advance those interested will know about that series of company relocations.

If the news had leaked too early, Chen Guiliang wouldn't have had a chance to acquire it; he couldn't compete with those with connections or large corporations.

But if Shouxin is willing to sell its mobile phone business and factory, it proves the news wasn't leaked beforehand; otherwise, they could just sit back and wait for the land value to appreciate. Why would Shouxin sell anything? They're not stupid.

Even Lenovo itself probably hasn't decided where to move its R&D center yet.

GLP also saw the booming e-commerce industry in China, which is why it came to Beijing to build an aviation logistics park. The e-commerce boom is a phenomenon of this year, so it's normal for GLP's information to be a year or two behind.

When Chen Guiliang acquired Shouxin Mobile, Prologis probably hadn't even sent representatives to China for an inspection yet.

Once he has enough funds and extra land, Chen Guiliang could even build his own company building. With the increasing number of employees at ByteDance and Youke, the Peking University Science Park building is almost overflowing.

Or perhaps we could spend money to convert a small amount of industrial land into commercial land... But forget it, we're not into real estate.

"If I were to manufacture mobile phones, would Editor-in-Chief Pu be willing to come and help? I'd be offering a high salary and a high position," Chen Guiliang said.

Pu Yuanbing waved his hand: "I've said so much today because I want to be friends with President Chen. As for making mobile phones, let's forget about it. I'll remind President Chen again: whoever enters the Chinese mobile phone industry will die!"

(End of this chapter)