When Zhao Yi returned to Kyoto, Hou Weigui from Hengtong Communications Company called and told him that the government approved Hengtong Communications Company's mobile network operation application.
Hengtong Communications Company and Huawei Technology Company were also invited to participate in the reform of the domestic communications industry. When Zhao heard this, he rolled his eyes involuntarily.
It is reasonable to say that Hengtong Communications Company should participate in the reform of the communications industry. After all, this company is the largest communications equipment company and communications technology company in the country. Without its participation, many tasks cannot be carried out.
As for Huawei Technology Company, it has just been established and has only three or two employees. The only advantage is that it still has some money on hand, but it is incomparable to Hengtong Communications Company.
For a company like this, it needs people but no one, and it needs technology but no technology. Do you think it is qualified to participate in the reform of the domestic communications industry? At least Zhao Yi doesn't think Huawei can get on the stage.
It's just that the government just let Huawei participate. There must be special arrangements by the government. Zhao Yi thought about it carefully and understood what the government meant.
In other words, the government hopes that many companies will participate in domestic communications construction, especially in mobile communications.
It's just that Huawei doesn't have any technology at all now. If Zhao Yi wants to give them technology, they have to recruit all the people, and it can't be successfully developed in a short time.
The only way for Huawei to play a role in this reform is to have Hengtong Communications Company license or transfer relevant patented technologies to Huawei Technologies Company.
It is estimated that the government departments also hope that Zhao Yi will do this and not let Hengtong Communications Company dominate. This will be good for him both at home and abroad.
Now that he understood the government's intention, Zhao Yi no longer struggled. Anyway, both companies belonged to him. From his perspective, it was a matter of left hand and right hand, but Hengtong Communications Company was not comfortable with it.
They had just been elated because they had obtained the right to build mobile networks, but as a result, a piece of their flesh was about to be cut off, which made no one feel comfortable.
And they haven't realized that the mobile network operation rights may not be transferred to their company. After all, they are telecommunications equipment suppliers. If they continue to be part-time operators, how can others compete with them.
Therefore, the mobile communication operation rights applied for by Hengtong Communications Company must be operated by an independent company. This time, Hengtong Communications Company should have achieved nothing.
Good news comes not only from Hengtong Communications Company, but also from Tianji Agriculture and Animal Husbandry Company. The government has officially issued documents to encourage agricultural modernization, build a first-class agricultural power, and provide a solid foundation for economic development.
With the instructions of this government document, Tianji Agriculture and Animal Husbandry Company can then flex its muscles and promote the current agricultural cooperation demonstration site model to the whole country.
Moreover, this document also plays an important guiding role in the agricultural cooperation model of Baiwei Food Company, and also provides a legal basis for the cooperation between Baiwei Food Company and farmers.
It’s just that it will be difficult for Zhao Yi to get money from the agricultural and animal husbandry company into his own pocket this year. If it is fully rolled out, the amount of money Tianji Agriculture and Animal Husbandry Company will need to spend is definitely not a small amount, and it is estimated that there will not be much left. .
Originally, he planned to go to Tianji Dairy Company for an inspection to see their current production and construction status. They had already started supplying milk and dairy products to the market. Zhao Yi had not visited the company once except for listening to the report at the annual meeting.
And in more than half a year, Tianji Dairy Company will provide intellectual milk to all schools across the country. There is still a lot of work in this area that needs to be implemented by Zhao Yi personally.
Because of the need for confidentiality, a large factory building was dedicated to the production of this kind of milk, and the equipment inside was almost in place. Zhao Yi was required to direct the installation, and then debug the relevant production lines and production procedures.
These are unmanned chemical plants, and their technical level is much higher than the production lines currently used. Average technicians cannot install them alone, and they do not have a complete set of drawings. Only Zhao Yi has them here.
As a result, before leaving, he was called by the government to attend the National Communications Industry Reform Conference. Originally, Zhao Yi thought that only Hengtong Communications Company and Huawei Technology Company would participate, but it turned out that he, the person in charge, was required to attend in person.
In fact, this meeting was said to be a national communications industry reform meeting, and in fact it was attended by state-owned communications equipment manufacturers, the Ministry of Posts and Telecommunications, and two companies under Zhao Yi.
"This meeting mainly has three topics. One is about the reform and integration of domestic communication equipment manufacturers, the second is about the reform of telephone communication operators, and the third is about the reform of domestic high-speed information network construction."
As soon as Zhao heard this, he knew that it was impossible for Hengtong Communications Company to take over the domestic Internet infrastructure. The government had realized the importance of the Internet and must get a piece of the pie from Hengtong Communications Company.
"Since Hengtong Communications Company independently developed the Wanmen program-controlled switch, my country has reached the international advanced level in the field of communication equipment R&D and production, and now even surpasses Western developed countries in mobile communication technology.
This is a remarkable achievement, in which Hengtong Communications Company plays the most important role. However, my country’s state-owned communication equipment R&D and manufacturing enterprises were previously in operating difficulties. If not handled properly, it would affect the employment of many workers. .
So we thought that we would take advantage of this domestic communications reform conference to resolve it all together and put forward all your opinions and views. "said the leader of the Ministry of Posts and Telecommunications.
After Zhao finished listening, he chose silence. He wanted to hear what others thought first, especially the state-owned communication equipment manufacturers here. He must first understand their inner thoughts before he could express his opinions in a targeted manner.
It's just that these state-owned communication equipment manufacturers seem to want to hear Zhao Yi's opinion first. After all, the most powerful companies now are Zhao Yi's companies, and his attitude is also very important to the leaders of these companies.
The atmosphere at the scene froze here. No one was willing to speak first. This made the leader of the Ministry of Posts and Telecommunications a little embarrassed. He said with a smile: "Don't be so quiet. You have any ideas. If you say it, it is not the final decision. You are afraid What."
In the end, it was representatives of state-owned communication equipment manufacturers who came forward to speak out, because they are the most urgent now. As time goes by, they will have less and less bargaining chips, and this problem must be solved as soon as possible.
“Our companies are indeed in difficulty, but we still have some fixed assets, as well as a group of skilled technical workers and R&D personnel, so we want to use these as assets and merge them into Hengtong Communications Company.
In this way, Hengtong Communications Company will be able to obtain a large number of skilled workers and fixed assets across the country. As long as the production line is slightly modified, the production capacity can be immediately expanded. I think this is a cooperation method that is beneficial to both parties. "
After hearing what the representative said, before Zhao Yi could say anything, Hou Weigui from Hengtong Communications Company immediately stood up and retorted: "What you call fixed assets are some factory land.
The production line equipment inside is of no use at all. It is so backward that there is no need to modify it.
As for skilled workers, these are not high-quality assets in our opinion, but should be regarded as a burden. Their technical level is still in the 1970s, which is too different from today's communication technology.
If you take up the job, you will need a long period of training.
At this time, we can actually recruit a group of new people and train them until they can start working. Therefore, the workers of these enterprises cannot be regarded as advantageous assets. "
Hearing Hou Weigui's words, the representative felt a little embarrassed for a moment. He didn't know how to refute Hou Weigui's words. After all, what he said was basically the truth.
It was the leader of the Ministry of Posts and Telecommunications who came forward to smooth things over and said: "Although the state-owned communication equipment manufacturing enterprises are not as bad as Mr. Hou said, they do have big problems. I wonder what Mr. Hou will do about this matter?"
When Hou Weigui heard what the leader said, he looked at Zhao Yi. After all, it was Zhao Yi who made the decision on this matter, and he didn't have the final say. Especially their opinions on merging into Hengtong Communications Company required them to give up their shares. What's more, Zhao Yi's consent is needed.
Seeing Hou Weigui looking at him, Zhao Yi cleared his throat and said: "Hengtong Communications Company's current operating conditions are very good, and there is no need to rapidly expand the number of employees in a short period of time, so let's forget about the proposal to merge into Hengtong Communications Company.
However, Huawei Technologies Co., Ltd. is newly established and there is a serious shortage of both researchers and technical workers. It can help you digest this problem.
However, instead of using your assets to invest in Huawei Technologies, Huawei Technologies will invest in purchasing your company.
As for asset valuation, we will invite a third-party accounting firm to be responsible for ensuring the interests of both parties. " Zhao Yi said.
Ren Zhengfei, who came to attend the meeting for the first time, thought that he was just a transparent person at the meeting, so Zhao Yi gave him this gift directly. Although these companies, Hengtong Communications Company, did not care about it, he did, because there were really not many people in their company.
If these assets are acquired by Huawei Technologies, they will suddenly have a factory, and they only need to update the production line equipment, and they can produce equipment all at once. It will be a great supplement to them.
When the leaders of the Ministry of Posts and Telecommunications heard what Zhao Yi said, although they also wanted to speak for the state-owned communication equipment manufacturer, they were indeed not on the same level. It would be difficult to take advantage, and Zhao Yi's proposal was relatively pertinent.
"This problem must be solved in a short time. The longer it is delayed, the more problems will arise. I agree with Mr. Zhao's words. I hope that both parties will reach a substantive agreement based on the perspective of solving the problem."
After hearing what the leader said, the representatives of the state-owned communications companies did not argue anymore. After all, what they said were all facts.
If Zhao Yi was an ordinary businessman, they could still use the power of the government to gain benefits for themselves, but Zhao Yi was not, so they could only accept this arrangement.
The first topic has been decided in this way, and there is no need to discuss the specific details at this meeting.
Zhao Yi will not participate in the discussion of specific details. Otherwise, why would these company leaders be asked? They are just here to solve these details.
"Next, let's talk about the second topic. There are several principles here. I want to emphasize first. The first one is that only one mobile communication operator in China must not be allowed to monopolize the domestic mobile communication operation market.
The second is that the fixed phone operation market also allows other operators to participate, but they need to operate in compliance with relevant national regulations.
The third is to hope that multiple domestic communication equipment providers will participate in the bidding for network equipment construction.
The above are all to prevent monopolistic behavior from occurring and establish and improve market-oriented mechanisms. Everyone here should understand why the government does this.
The fourth is that communication network operators must be separated from equipment suppliers to prevent unfair competition. "
After Zhao Yi heard this, he thought to himself that it was exactly what he thought. He glanced at Hou Weigui and felt that he was dumbfounded. He had worked so hard for so long, but in the end he didn't get any benefit at all and had to lose a lot of benefits. .
Hou Weigui looked at Zhao Yi, hoping that he could come forward to discuss it with the government. As a result, Zhao Yi said directly: "These are nothing to discuss. I personally agree with these principles."
Hearing what Zhao Yi said, the happiest person was Ren Zhengfei, the president of Huawei Technologies Company. They had just taken over an asset, and then came such a benefit.
The third principle is completely from his heart. If he wants to implement the third principle, then Huawei Technologies will become a favorable competitor. According to Zhao Yi’s interests maximization, he must give this benefit to Huawei Technologies. .
Then Hengtong Communications Company must transfer relevant patented technologies to Huawei Technology Company. Otherwise, if Huawei is allowed to slowly develop its own technology, Hengtong Communications Company will not be able to sell their equipment until the end of the year.
"With Mr. Zhao's words, the next step will be much easier.
The Ministry of Posts and Telecommunications will be split, with one part retaining administrative functions, and the other part establishing China Communications Corporation, which will be responsible for operating the mobile communication network, fixed communication network and Internet access business to be built.
You also know that China Communications Corporation, which has just been spun off, simply does not have that much money to build mobile communication networks on a large scale, and is definitely at an absolute disadvantage in market competition.
So I hope you can invest money into shares so that China Communications Corporation can raise funds for the construction of mobile communication networks and the development of the other two businesses. "The leader of the Ministry of Posts and Telecommunications said.
Zhao Yiyi had foreseen the split of the Ministry of Posts and Telecommunications, but he did not expect that he would be invited to participate in China Communications Corporation. This was a naked benefit in the eyes of outsiders.
But when I think about it, it seems that Zhao Yi is the only one in the country who can provide such a large amount of funds now. Of course, he can also borrow money from banks for development, but it just happens that the reform of state-owned enterprises is in progress, and state-owned banks are also short of funds.
Moreover, after receiving a large amount of bank funds, interest must be calculated, so their future income is destined to be less generous than that of their competitors, and they will be increasingly at a competitive disadvantage.
"There's no question about it. It's just about the shareholding ratio and the valuation advantage. Can you give us accurate data or invite a third party to evaluate it?" Zhao Yi said.
"The assets of the China Communications Company that will be spun off will be about 10 billion yuan, and the liabilities will be divested. Together with its operating rights, the total valuation will be 20 billion yuan. We are prepared to sell 30% of the shares for a price of 60 billion."
Such a valuation must be too high in Zhao Yi's opinion, but he has no intention of bargaining. First, he has already obtained the operating rights from them and does not want to haggle over it anymore. Second, compared with future earnings, this Money is nothing.
As for the 30% share, it is actually of no use. He will definitely not be able to participate in the specific operations. Moreover, the shares in the hands of the government are enough to determine all decisions. He will only earn dividends.
In fact, even if Zhao Yi pays dividends, he has to make a mark. Based on Sinopec's performance of losing money every year, it is estimated that it will be difficult. He hopes to get some benefits from the stock market in the future.
"Okay, just follow this, I will let the law firm and accounting firm help with the relevant procedures." Zhao Yi said.
This matter was settled in just a few words between the two parties.
"Then the next step is the third topic. We all know that the current high-speed information networks are laid by Hengtong Communications Company, and our government has no intention of getting involved.
However, China Communications Corporation or the communications operation company established by Mr. Zhao alone need to participate in the competition for end customers. We hope that this skeleton network is an infrastructure, just like a highway network.
There are operators renting network bandwidth, and Hengtong Communications Company is responsible for upgrading and maintaining the backbone network. This can avoid the problem of duplication of construction. I wonder what Mr. Zhao thinks? "
"Since it is to avoid duplication of construction, I personally agree with it, and even mobile signal towers can also operate in this way to prevent communication operators from building their own signal towers. I wonder what the leaders think?" Zhao Yike said.
When the leader heard Zhao Yi's words, he looked at him, trying to see what he meant from his eyes, but Zhao Yi still looked sincere.
Seeing the leader's expression, Zhao Yi said: "I have no other meaning, I really hope so, because this arrangement can indeed save a lot of money, and can also rapidly develop domestic mobile communication networks and the Internet."
After hearing what Zhao said, the leader nodded and said, "Since Mr. Zhao said so, we will do it this way."
The cost of these infrastructure constructions is huge, and China Communications Company does not have that much money for the time being. This way of handling it is the best for them.
If Zhao Yi does this, he will definitely suffer in the short term, but in the long run, the benefits will be good, because this is a long-term benefit, similar to the way the power grid operates.
After determining these general directions, the next step is to negotiate the details, because the government really cannot spend much money to invest in these infrastructure constructions.
Therefore, in the soon-to-be-established China Tower Company, Zhao Yi’s investment will hold 95% of the shares, and the government will hold 5% of the shares in land resources. At the same time, the government will also need to coordinate the problems caused by the construction of signal towers in the city.
As for the national high-speed information backbone network, a separate China Telecom company was established to operate it, and related businesses were spun off from Hengtong Communications Company. If Zhao held 100% of the shares, the government would not participate.
As for the subsequent related rental fees and other possible issues, we still need to wait for the relevant companies to be established before further negotiation. These issues will not be covered here for the time being.
After the meeting, Zhao Yi met with Hou Weigui and Ren Zhengfei. He needed to make arrangements for some topics.
Zhao Yi said: "Hengtong Communication Company has indeed paid a lot this time, but these are things that cannot be helped. However, in order to compensate you, all employees of Hengtong Communication Company will be rewarded with two months' salary. Your reward this year will be doubled." .”
Although Hengtong Communications Company cut off a large piece of meat, Hou Weigui is not a shareholder of the company. It is only related to his interests that the relevant performance is reflected in the bonus. Zhao Yi still needs to give them some compensation.
"In the meeting just now, you also know that Huawei Technologies must have its own mobile communications technology to compete with you, otherwise Huawei will not be qualified to participate at all, and it will still have to take advantage of others.
And you happen to be vigorously promoting the G** system around the world. Another set of CDMA communication technology you developed should be licensed to Huawei Communications Company, so as to stagger competition. " Zhao Yi said.
After listening to Zhao Yi's words, Hou Weigui seemed to accept his fate and nodded, indicating that he understood what Zhao Yi meant.
"No problem. After we go back, we will start negotiations on the relevant licensing agreement." Hou Weigui said.
The happiest person is Ren Zhengfei. Today seems to be a good day for him. Before coming here, he thought he was just a soy sauce dealer. But he didn't expect that he would get so many benefits and take advantage of him.
All of a sudden, the personnel, venue, and technology were all in place. As for the funds, he didn’t have to pay for them anyway, so there was no need to worry about this.
"Mr. Ren, after you go back, start relevant acquisition negotiations with domestic communication equipment manufacturers. Let Yong'an Accounting Firm do the asset evaluation. They are professional in doing this." Zhao Yi told Ren Zhengfei. .
"Okay, I'll arrange this when I get back." Ren Zhengfei said.
After sending the two people away, Zhao Yi asked the law firm to register a China Unicom company. The company's main business scope includes the operation of mobile communication networks, fixed phone operations and Internet access services.
It is completely based on China Communications Corporation, which was separated from the Ministry of Posts and Telecommunications. In the future, in the domestic telecommunications field, there will be competition between these two companies, one public and one private, which is very good.
As for completely annihilating the opponent, this is unrealistic. Zhao Yi has never had this idea. In the future, if China Unicom can occupy 70% of the market share, he should laugh. If it accounts for 80%, it will completely exceed his expectations.
Although China Unicom has better technical support, China Communications Corporation has many policy preferences. It is hard to say who will be stronger and who will be weaker. (End of chapter)