1. Where is Monternet heading? When Monternet first appeared, it was mainly a value-added service platform based on SMS. The business model was to share profits with SP/CP, and this model has been highly successful since its launch, saving China's Internet and a number of Internet companies. But today, the flaws in the Monternet model have become increasingly apparent. Monternet is at the end of its rope, while the Internet is flourishing.
Firstly, the SMS-based service method is being replaced by newer WAP, WEB, and IP-based clients. Monternet is inherently unsuitable as a platform for WAP and pure IP value-added services, so its status will inevitably degrade from the sole value-added service platform to just one among many, and the most outdated one.
Secondly, in terms of business model, Monternet has become synonymous in the public eye with SPs making money dishonestly, where users are almost certain to be cheated. Although its economic benefits are still strong, its social benefits and public image have become like an incapable person that cannot be helped. Every year, the March 15th Consumer Rights Day is almost like a criticism meeting specifically for Monternet.
In fact, China Mobile has already begun considering Monternet's future, even discussing whether to shut down Monternet. This issue not only affects China Mobile's own interests but also involves a large number of SPs and CPs in the industrial chain, which currently supports hundreds of thousands of employees. However, Monternet's current predicament is hard to reverse. The only question is how Monternet will fade away: will it naturally disappear like an outdated pager, or will it be killed off by administrative orders?
2. How to Build a Mobile Internet Platform?
Another dilemma for China Mobile is how to formulate and implement its Internet strategy. The recent buzz about the rumored relationship between China Mobile and Tencent is actually just a small scene of Wang Jianzhu's detour to Tencent to learn about the Internet during his visit to Huawei. In fact, in recent years, exchanges between China Mobile and Tencent at various levels of the Internet have been ongoing. China Mobile has always admired Tencent's platform on the surface but failed to understand it deeply. Although Tencent has indeed taught it through examples, China Mobile simply cannot shake off the influence of monopoly thinking and fundamentally fails to understand the essence of building an Internet platform.
On the other hand, China Mobile's actual attempts in the Internet field have been high-profile. Products such as 139, 12580, MDO, and various business bases distributed across eight provincial companies (Sichuan Music Base, Guangdong MobileMarket, Hunan Payment Base, Zhejiang Reading Base, Jiangsu Game Base, Liaoning LBS Base, Hunan Animation Base, etc.), are defined by China Mobile as follows: MDO is a business model parallel to Monternet, and the others are all their own channels. The architecture model is entirely a "Mobile provides the stage, SP performs" platform model. However, these products don't look like proper products, and the platforms don't resemble proper platforms. There's a lot of confusion within China Mobile itself, as they do not know how to build these things into an Internet platform like Tencent's. They even do not fully understand why QQ is a platform, but Qzone isn't.
Confusion, confusion.
3. Internal and External Operating Environment
Departments responsible for publicity have been closely watching the easily problematic telecommunications value-added services sector. Last year's crackdown was said to last for a year, and it has only been a short time since then.
The fall of Zhang Chunjiang has triggered a wave of anti-corruption in the telecommunications sector. The latest case involves Li Xiangdong, the head of China Mobile's Sichuan Music Base, who fled to Canada with a large sum of money (some say he has already been captured, with the amount allegedly reaching 400 million to 600 million yuan). Today, it was announced that the National Audit Office would comprehensively enter the three major telecommunications operators, specifically auditing SP businesses, and even requiring SPs to provide corresponding audit materials.
China Mobile is about to establish a Network Security Department and a Terminal Department. In the future, the common deceptive practices used by SPs may have to be curbed somewhat in front of the specialized Network Security Department, and the Terminal Department will strictly manage terminal pre-installation. It will probably be unrealistic to engage in black-market SP activities unless you pre-install something that doesn't directly generate profit.