1993 Glamour at a Glance

Chapter 230
The most obvious sign in the market is that the speed of bargaining is very fast.

At that time, the price of 2980 was very shocking. After only a few months, the price of those VCD players was directly reduced to below 2500 or even close to 2000.

Otherwise, why compete with super VCD?

VCDs were soon sold as low-end products. In March and April, Wanyan, Sony, Toshiba...many brands of super VCDs were announced.

In order to promote sales, all kinds of means are used.

Those who send microphones, those who send Walkmans, those who send CDs...

There is even a delivery of rice and oil.

On CCTV, there are more than 10 VCD manufacturers advertising.Wan Yan, the boss who relied on mergers and acquisitions to keep her market share, began to announce plans to go public. This is a strong signal for them to motivate dealers.

Distributors buying goods with banknotes, dazzling promotions, constant advertisements on CCTV... Newspapers have begun to call this year the year of VCD.

At this moment, Chunya Investment has just completed the cooperation procedure with Huatong, and has officially become a shareholder of Huatong Corporation.

It holds 11.6% of the shares. For this reason, Chunya Investment is about to spend more than 6 million yuan on Huatong, and it is already discussing the plan for 96.

This ratio is quite high. You must know that the shares of Huatong are quite scattered now.

The largest shareholder only accounted for 13.44%.Except for the other two that invested 1 million at the beginning, the rest invested 8000 million at the beginning, accounting for 5.97% of the shares.

Now, two companies have completely withdrawn, and three companies have retained ranging from 2% to 2.5%.The original Big Three not only "borrowed" 2 million yuan from Chunya Investment to acquire some shares, but also allowed Chunya Investment to account for 11.6% of the shares.

Except for the largest shareholder, Chunya Investment now holds the same proportion of shares as Huatie Communication and Power Communication.

The right to speak is not small.

"Now, the GSM networks in Yanjing, Shanghai, Guangdong, and Jinmen have been completed. This year's goal is to complete the networking of 12 provincial capitals. In addition, there is another important work, starting from Xiangdao Expand the international roaming business." Zhao Wei is ambitious, "The capital increase has been discussed for a long time, everyone, in order to speed up the development, it is necessary to increase the capital to 20 billion this year."

"Director Zhao." One of the shareholders, the director of Guangdong Nanhua Communications, seemed very embarrassed. "Isn't it enough to build a base station and use local branches to attract shareholders' investment?"

"Hurry up!" Zhao Wei said solemnly, "GSM networks have been built and put into operation in 15 provinces and cities by the end of last year at the Telecom Bureau. This year, except for Tibet Province, all other provinces and cities will be opened. According to estimates, the number of users may exceed 200 million this year, how much can Huatong account for? Can it exceed 10, or even 5?"

The comparison is so cruel. Although Huatong, which has just started, has a capital of more than 10 billion, compared with the telecom bureau, it seems that it will go bankrupt at any time.

To put it bluntly, only four places have been opened, and the fixed-line market is blocked. How much money can tens of thousands of users earn?
But for the mobile communication network, you just have to build switching centers and base stations, and the signal must be covered.

If you can't connect, then stop cooking.

Only then did Song Yang know that Huatong's so-called capital increase was not promoted at all.Either they promised first and wrote a blank check, or they are still procrastinating.

To be honest, the current Huatong makes people see no hope.

He sits and watches a play.

Song Yang is confident and willing to vote.

But before the largest shareholder only accounted for a little over 13%, did Chunya Investment become the major shareholder all at once?

That's not appropriate.

Where will the money come from?
They are all from the background of state-owned enterprises. Today, the board of directors is destined to be just a joke.

After the meeting, the four shareholders who accounted for a little more shares sat in Zhao Wei's office.

"...Hey." Zhao Wei felt helpless, "It's really difficult."

Song Yang was a little strange: "Huhai Science and Technology Investment and Nanhua Telecom have seen the feedback and prospects of the local markets in Shanghai and Guangdong. Why are they still unwilling to make efforts?"

Zhao Wei was a little embarrassed: "It's just that the market feedback is not good. Our Huatong network, the current signal... is quite a problem."

After finishing speaking, he sighed again: "The construction costs of switching centers and base stations are too high."

In today's communication market, those very small internal switches are fine, but the large switches required by the operator's switching center can cost several million dollars.

At present, base stations are also high-power repeaters, and one base station is enough to cover a county.Of course, the signal may not be very good in some places, so you have to go to a higher place.And for such a high-power repeater, the cost of building a single station is hundreds of thousands or even nearly one million.

Eight companies from seven countries dominate the global market in this field, which is why there is an era of seven countries and eight systems with initial installation fees, roaming fees, and so on.

The engineers of these equipment suppliers charge by time from the moment they board the plane for after-sales maintenance.

The high-end hotel where they live has a monthly salary of tens of thousands of dollars-the operator counterparts who are responsible for receiving them, although the level is not low, the salary is only a few hundred dollars.

This was the "golden age" of the communications industry, until a fierce company rushed in and wailed everywhere.

Now, Warwick is still selling their new product for solidified communication: C&C08 switch.

They have not yet entered the field of wireless communications.

The VCD market is in full swing, but Song Yang is now at the early stage of the 2G era, and Zhao Wei is worried.

It is necessary to roll out the network first and increase the number of users.

That costs money.

Even if a single mobile phone can now charge tens of thousands of initial installation fees, even if Huatong exceeds the goal this year and breaks through 10 users, how much money can it recover?

Zhao Wei looked at Song Yang.

"Mr. Song, I know that 2 million has been borrowed. If the capital increase cannot be pushed, can you lend more?"

"Director Zhao." Song Yang looked at them, "The 2 million is purely based on credit, and the repayment period is three years. If there is more, it is not a solution. If we really want to catch up, we still have to control the construction cost come down."

"...That didn't happen overnight." Zhao Wei gritted his teeth, "How about I make a report and use the equity of the branch as collateral!"

Song Yang was taken aback: "Mr. Zhao, are you trying too hard?"

This is a taboo thing. The communication industry is such a strategic industry, and Huatong is a state-owned holding company. Can the branch play this kind of routine?
He introduced a large number of shareholders through branch companies, which in itself caused a lot of trouble for the future.

"Huatong must be completed!" Zhao Wei thumped the table. "By the end of this year, we must at least reach the network coverage level of the telecom bureau at the end of last year. Now there is a funding gap of about 5 million, so I have to find a way."

Even though Chunya Investment has also participated in the investment of four provincial branches, and even though the external shareholders of the branch can provide funds or offset the price with equipment, after the network is rolled out, the operating costs are not low.

Leaving from Huatong, Song Yang wondered, should he contact Huawei?
After Wang Yuan and Ni Nanguang have perfected the DVD decoding chip, it's time to free up their hands to enter new fields.

As for Huawei, C&C08 was well received, which really made them start to make a lot of money. It seems that it was about this time that they started to enter the field of wireless communication.

……

No success is accidental.

Pengcheng, Warwick has passed the initial difficult stage.

But three years ago, Warwick experienced a life-and-death crisis.At that time, Huawei couldn't even find a bank loan, so he had to rely on usury to continue his life.

Fortunately, C&C08 was a great success.

Good quality and low price, last year, Warwick's sales revenue reached 15 billion yuan.

The 15 billion yuan was brought by Yu Dong, who participated in the research and development of C&C08, and led his team from markets such as rural areas and county towns.

At this moment, Yu Dong, who was thin but energetic, said earnestly: "The wireless communication market is definitely much bigger, and the growth rate is now more than 100% every year! Mr. Ren, the switch business will enter the big cities next, and it will get better and better. .But, you can't just put all your eggs in one basket!"

His purpose is to persuade Ren Fei to set up a wireless business unit.

Ren Fei has just come out of the previous life-and-death crisis, and it is difficult to make an easy decision on the wireless communication business, which has a much higher technical threshold.

"Wireless communication is not just a switch. Signal transmission, amplification, reception... and the GSM standard is mature, and the patent threshold is very high!"

Once decided, it will be several years and hundreds of millions of R & D investment.

Yu Dong resolutely said: "If we don't do it, we will never be able to enter this bigger market! Now the whole country is laying out GSM network, with tens of billions of contracts every year. It is still the same, we will follow first and do GSM. But , the next generation of wireless communication technology, we try to squeeze in a little bit, no matter what, we have to come up with eight countries and nine systems!"

"This is different from a switchboard for a central office." Ren Fei sighed, "In wireless communication, in China, you only deal with the telecommunications bureau. It's amazing that there are many Huatong. They are all tendered from the headquarters, and this road does not exist in rural areas. When it comes to encircling the city, you have to fight against opponents like Ericsson head-on.”

"Mr. Ren, don't you believe we can work it out?"

"...It's not that I don't believe it." Ren Fei struggled with just one point, "I have to be responsible to you! When I developed JK1000, I chose the wrong direction. As soon as the product came out, it was a generation behind, and the company almost collapsed. Now I have to do it. Wireless communication, let’s not talk about it for a few years. What if the GSM network falls behind again as soon as it comes out?”

"Give me 2 years!" Yu Dong said firmly, "In 2 years, I will definitely come up with GSM products! At the same time, I will accumulate technology, and within 3 years, we will definitely start to have the results of our next-generation wireless communication technology! In the past, C&C08 can make money, and we have the spare capacity to create more business!"

Before Ren Fei could make a decision, someone from the office knocked on the door and came in and said, "Mr. Ren, Mr. Song Yang from Huaxin Microelectronics, called and said he wanted to visit."

"Huaxin Microelectronics? Song Yang?" Ren Fei was puzzled and looked at Yu Dong.

The two have been immersed in the communication industry, and they really didn't match up for a while.

"He is a very powerful person." The subordinate has already done his homework, "Phantom VCD. In fact, his more important identity is the general manager of a company called Chunya Investment. This Chunya Investment is now a shareholder of Huatong. "

Yu Dong's eyes lit up: "Maybe it's a chance to break into Huatong!"

Speaking of Phantom VCD, Ren Fei remembered it.

"Huaxin Microelectronics..." He pondered for a moment, then asked, "Did Mr. Song leave his contact information? I'll call him."

With so many identities, including the identity of Huatong shareholders, it is worth pondering to contact in the name of Huaxin Microelectronics.

Ren Fei made a phone call, and after exchanging pleasantries and flattering each other, he said, "Mr. Song made a special contact. I don't know if you have any ideas?"

Song Yang said with a smile on the phone: "Mr. Ren, I wonder if you have any plans to develop in the field of wireless communications? If so, I would like to share some ideas."

Ren Fei couldn't help but cast a glance at Yu Dong, the guy's eyes were already bright with his ears set aside.

"I'm thinking about it, so I really need to ask Mr. Song for advice." Ren Fei asked, "Mr. Song still has a microelectronics company?"

"That's right. The decoding chip of Phantom VCD is made by this microelectronics company." Song Yang looked very frank on the phone, "When it comes to Huawei's C&C08 switch, Academician Ni Nanguang praised him, saying that the chip of that machine is also yours. Self-developed. In the next step, we have the idea of ​​making communication chips, but our understanding of the communication industry is still not as deep as that of Mr. Ren, and there are many things we want to ask for advice. Of course, there should be places where we can cooperate.”

When Ni Nanguang's name was mentioned, Ren Fei and Yu Dong thought about it thoroughly.

It seems that after Ni Nanguang left Lianxiang, he really started working on new integrated circuits with Professor Wang Yuan of Yanda University.Ni Nanguang strongly advocated that Lianxiang should enter the communication field, which once made Huawei worry.

Now that Song Yang mentioned this, Ren Fei and Yu Dong raised their concerns again.

Huawei does not engage in wireless communications, someone will!
Fortunately, after conveying the meaning of cooperation, Ren Fei asked, "What time is convenient for Mr. Song? We should visit Academician Ni."

After making an appointment, Ren Fei said to Yu Dong after hanging up the phone: "Should I set up a wireless business department? Let's go to Yanjing first and then make a decision!"

On Yanjing's side, Song Yang was also thinking about it.

Lao Ren is ambitious, but he is not necessarily so determined now.

Huawei is making money, and he, a person who has always refused to go public, will not think about introducing new shareholders.

So in the field of wireless communication, how can the two sides cooperate together?
Now we have Huaxin Microelectronics and Scooper.Warwick also has its own integrated circuit design center.

I am afraid that the foothold should be placed on Huatong.

Let's just talk about it openly: Huawei has the opportunity to use Huatong to enter the wireless communication base station construction and switching center market, while Song Yang's side is still targeting consumer terminals.

Warwick has absolutely no intention of making mobile phones now.

But Bodao can already start preparing for transformation: the price of BP machine has been developing below 500.

In the spring season, in a small building specially bought for Huaxin Microelectronics in Zhongguancun, Ren Fei and Yu Dong met Wang Yuan and Ni Nanguang, as well as many young students from Yanda, Huaqing, Chinese Academy of Sciences and other universities. people.

The momentum is much stronger than Warwick's integrated circuit design center.

"... 1 million per year?" Ren Fei was a little dazed after hearing this, and then looked at Wang Yuan and Ni Nanguang.

No wonder these two academicians are willing to stay here.

Song Yang confirmed with a smile: "After entering the mpeg standard, the next step is to enter the next-generation mobile communication standard. Of course, we will start with GSM first. Mr. Ren, if you can combine the costs of GSM base stations and switching centers If it is reduced by [-]%, then I can persuade Huatong to use you at the risk of quality. The two sides cooperate together, and maybe the product will be produced within this year, which will catch up with Huatong's nationwide network next year, covering prefectures outside the provincial capital city."

Yu Dong couldn't help looking at Ren Fei.

Do it!

(End of this chapter)