Analysis On Telecommunication Operators' Financing Strategy

The current domestic economic situation has been changed. Overheated economic growth has caused the macro control by the government. increasing interest rate frequently has raised the financing cost of the telecommunication operators', the thriving capital market has intensified the telecommunication operators' coming back from aboard, telecom industry's keen competition has forced the industry' into stepping into the age of meager profit gradually. Another aspect, telecommunication operators' funds need becomes larger and larger accompanied by the arrival of the 3G. Under this background, the importance of the telecommunication operators' finances has revealed to our sight. Therefore, making a reasonable financing strategy for telecommunication operators' is the key for supporting the long-term development of telecommunication operators'.Fist, this thesis defines the concept of the financing strategy, puts forward that financing strategy is not only a financing patterns or a financing channel, but also a combined strategy which includes financing scale,financing patterns,financing place,underwriters,financing timing and so on and comprehensively considers financing funds need, financing cost,financing risk,financing income,the target capital structure and the development of capital market according to different development stage,different environment and different services characteristics, in order to earn the bigger income with the lesser cost and the lower risk.Then, this thesis analyses the current financing strategies situation of telecommunication operators by the methods of statistic analysis,structure analysis and comparison analysis and reaches a conclusion that the current financing strategies drafted by telecommunication operators mainly include the strategy which pays more attention to financing scale, the strategy which totally lays particular emphasis on financing aboard, the strategy which totally lays particular emphasis on equity financing, the strategy which lays particular emphasis on equity financing aboard at earlier stage and lays particular emphasis on debt financing domestic at later stage, the strategy which optimizes equity structure, the strategic cooperative financing strategy, the strategy which the financing subject earlier separates and later consolidates and the strategy which the main underwriters integrate the secondary underwriters. Then, this thesis analyses the problems in the current financing strategies situation and the reason for the problems.At last, This thesis puts forward a universal thinking patters when telecommunication operators make a financing strategy which can be conclude that first analyses the macroeconomic environment and industry environment in an all-round way meanwhile accurately seizes the financing timing, then sets a reasonable financing scale according to the telecommunication operators' funds need and funds supply by capital market, then choices a proper financing patterns,financing place and takes the target capital structure and the financing cost,financing risk and financing income into account. At last, accurately sets a financing subject and choice an outstanding underwriter. At the same time, this thesis suggests some financing strategies for reference, such as the strategy on a fairly large scale, the strategy complies with the target capital structure, the strategy complies with diversity equity, the strategy complies with diversity patters and the financing strategy by the way of recombination.