On March 25, China Mobile announced its 2020 annual performance report. So far, China Mobile, China Telecom, and China Unicom have all released their 2020 annual reports. In the past year, the total revenue of the three major operators reached 1,465.5 billion yuan, and the net profit was 141.2 billion yuan, all achieving positive growth.

2020 is the closing year of the “13th Five-Year Plan”. Facing the impact of the new crown pneumonia epidemic and the complicated international situation, the three major operators have worked hard to overcome various difficulties and challenges, and the operation data and 5G network construction are moving forward smoothly. Good, boosted the confidence of the industry.

5G construction investment continues to increase

Under the background of new infrastructure construction in 2020, the three major operators have continued to increase their capital investment in 5G network construction, with a total expenditure of 175.7 billion yuan, an increase of 8.3% over 2019. The three major operators provide 5G services to all prefecture-level cities, some counties and key areas across the country, and build the world's most technologically advanced and largest 5G SA commercial network.

From the annual report data given by the three major operators, in 2020, China Mobile's capital expenditure will be 180.6 billion yuan, of which 5G-related investment will be 102.5 billion yuan. About 340,000 new 5G base stations were built throughout the year, and a total of 390,000 5G base stations were opened; China Telecom’s 2020 annual capital expenditure was 84.8 billion yuan, of which 39.2 billion yuan was used for 5G; China Unicom’s 2020 capital expenditure was 67.6 billion yuan, 5G-related Capital expenditure of 34 billion yuan.

In the era of 3G and 4G, my country has built six networks. In the 5G era, China Mobile, China Radio and Television, China Telecom, and China Unicom will build and share in two ways. During the 5G construction cycle, only two boutique networks need to be built. In the more than one year since China Unicom and China Telecom co-built and shared, the world’s first largest 5G co-built and shared network has been built, achieving continuous coverage of 5G networks in all prefecture-level and above cities, key counties and cities, and important buildings. The highest peak rate reaches 2.7Gbps

A few days ago, the Ministry of Industry and Information Technology issued the "“Dual Gigabit" Action Plan for Coordinated Network Development (2021-2023). It is planned to take three years to basically complete the "Double Gigabit" covering urban areas and qualified townships. ”Network infrastructure, to realize that fixed and mobile networks generally have “Gigabit-to-home” capabilities. Gigabit optical network and 5G users accelerate the development, and the user experience continues to improve.

Under the three-year action plan and the "moderately advanced" network construction policy, operators' 5G capital expenditures have continued to increase. In 2021, the 5G capital expenditure of the three major operators is expected to reach 184.7 billion yuan, a slight increase compared to 2020. Operators can use the 700MHz spectrum resource advantage to greatly reduce the cost of network construction. In 2021, 5G network coverage will be expanded to all counties and some villages.

China Unicom Chairman Wang Xiaochu said that in 2020—2022, capital expenditure will basically remain at around 70 billion yuan, of which 5G investment will account for about 35 billion yuan. After 3 years, 5G investment will begin to enter The descending phase.

C-end market structure stabilizes, B-end business value is prominent

According to the annual reports of the three major operators, China Mobile continues to lead in the number of mobile users. As of the end of December 2020, China Mobile has 942 million mobile users, China Telecom has 351 million, and China Unicom has 306 million. China Mobile’s mobile users accounted for 59%, and China Telecom and China Unicom accounted for 22% and 19%, respectively. Among them, China Mobile has 165 million 5G package users, accounting for 53% of the market. The number of 5G package users of China Telecom and China Unicom are 87 million and 71 million, respectively.

In terms of fixed-line broadband, starting in 2018, China Mobile’s fixed-line subscribers surpassed China Telecom. In 2020, China Mobile’s fixed-line broadband business accounted for 46% of the market share, making it the largest fixed-line operator in China. China Telecom and China Unicom accounted for 35% and 19% respectively.

Industry insiders pointed out that China Mobile’s fixed-line business revenue is expected to maintain growth. Operators have formed a complete system of continuous growth in fixed-line revenue by continuously increasing investment in optical fiber, optimizing broadband quality, and improving universal service coverage in rural areas. With the expansion of fixed-mobile convergence services, while developing 5G connections, China Mobile will further increase the viscosity of fixed-line users.

As the growth of C-end mobile business revenue has slowed down, and consumer-grade explosive 5G applications have not yet been born. In order to gradually get rid of the situation of incremental non-increasing revenue, operators attach great importance to the B-end industry market, and business layout has gradually highlighted its value .

In the past year, China Mobile's government and corporate customers reached 13.84 million, a net increase of 3.56 million. Private line revenue reached 24 billion yuan, a year-on-year increase of 19.3%; DICT revenue reached RMB 43.5 billion, a year-on-year increase of 66.5%, and its incremental contribution to communication service revenue reached 2.6 percentage points. Among them, mobile cloud revenue reached RMB 9.2 billion, a surge of 353.8% year-on-year.

In 2020, China’s telecom industry’s digital revenue will reach RMB 84 billion, a year-on-year increase of 9.7%, and the entire network’s cloud business revenue will reach RMB 13.8 billion, a year-on-year increase of 58.4%; China Unicom’s industrial Internet business revenue will increase by 30.0% year-on-year, reaching 42.7 billion yuan, of which ICT business revenue was 13.4 billion yuan, a year-on-year increase of 33.4%, IDC and cloud computing business revenue reached 23.4 billion yuan, a year-on-year increase of 26.1%; IoT business and big data business revenue reached 4.2 billion yuan and 1.7 billion yuan respectively , An increase of 39% and 39.8% respectively year-on-year.