Inter-provincial settlements are for those who understand, right?
Cross-provincial settlement is the internal management mechanism of telecommunications companies, similar to amibas. The main purpose is to divide costs across provinces to avoid malicious competition between provinces. For example, if a company needs broadband expansion for new business, A province's final quotation is 1 million yuan and refuses to reduce prices; then it will talk to B province, where the price may only be 800 thousand yuan; for the company, they save 200 thousand yuan, for the telecom overall, they earn 800 thousand yuan, for B province, their sales increase by 800 thousand yuan. Assume that the service targets in A province are mostly in A province, extreme case, assume it's 8K video services. B province gets the funds, expands base equipment to meet the bandwidth requirements of 8K video services, but A province does not get the money and does not know about the newly added business, so they find out that there is an abnormal increase in provincial traffic over the network performance, and at the same time, the quality of network service deteriorates, consumers begin to complain. At this time, A must do network expansion. Such business occurs several times, finally, when it comes to the year-end, everyone knows that B province's sales champion, A province has all red ink! Cross-provincial settlement is to solve this problem. Telecoms and Unicom have already started doing this before. Doing this would inevitably affect something.
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