Study Of The Financial Strategy Of The Telecom Companies

Along with the constant deepening of China's reform of telecommunication system, our telecommunication industry is flourishing. Closing to the end of 2007, China's mobile phone users and fixed phone subscribers rank first in the world, broadband subscribers ranks second in the world. By separating government from enterprises, the separation of Posts and Telecommunications, the reorganization of the telecommunications market and other reforms, China's telecommunications industry forms the basis of the "5+1" telecom operators competing pattern in the business market in 2002. On May 24th,2008,the Ministry of Information Industry and National Development and Reform Commission and the Ministry of Finance joint reorganization notice that ,encouraging China Telecom to buy China Unicom's CDMA network (including the assets and users),China Unicom and China Netcom merging, the China Satellite Communication Basic telecommunications business into China Telecom, the CRC into China Mobile.3G licenses will be granted after completion of the reorganization. This means that China's telecom operators have a re-shuffling, from the previous "5+1" competition gradually into the pattern of tripartite confrontation. Moreover, as China's accession to the WTO, China's telecommunications market gradually opening up, China's operators also take an active part in international competition in the telecommunications market, telecommunications operators in the market competition will become increasingly fierce.Along with the development of telecommunications technology, especially the development of the Internet, the telecommunication enterprises are faced with much pressure in reform, the tendency of the telecommunication,television and Internet gathering become more urgency. Meanwhile, the society pursue intellectualization, personalization, wireless and wide band. The economical globalization and the capital market to the high technology and new technology favor, the global telecommunication operation enterprise are all carrying on reforming actively or passively which the enterprise develops, China's telecom operators are in the harsh to seeking survival in the market and the development, and they must be in a strategic height to plan the development of enterprises, and cultivate and create the core competitiveness. In the competitiveness of enterprises, financial management capacity of the strategy is the comprehensive ability in enterprise's various aspects. At present, China's telecom operators, on the financial management strategy, particularly on the level of capital operation exist larger differences compared with international telecommunications giant. China's operators must catch up with international telecommunications giant in the management, including financial management strategy, can they compete in neutral in an invincible position. Above all, on the basis of recalling the financial perspective strategic basic research, domestic and international telecommunications development and transformation comparatively analyzing in-depth the major operators of the financial management strategy, with the author's 20 years of work experience of observation and the conclusion in the telecommunications industry on the financial front ,taking the China Netcom ,which the author serves, as an example, analyzing the China Netcom in transition comprehensively, facing the environment and its own merits, on the basis of which ,the paper establish the financial strategy of China Netcom from five major aspects, the establishment of management system, the funding operating system and the business Finance system and the policy to support the work system and the risk prevention system .