Three operators have announced the results of the first half of this year, the results show the number of users that need them are growing, but revenues were down there, Bo Ming Technology considers this to be big hit traffic prices led to consequences which price war played the most ferocious of China Unicom's revenue decline was the largest revenue decline of living in China Telecom Secondly, while the revenue decline was hit their target but China mobile's smaller than the two competitors, the price war shows traffic to China China Unicom and China Telecom harm to a large number.
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Subscriber growth failed to bring revenue to rise
The three major operators have announced first half results this year show that China Mobile, China Telecom, China Unicom's revenues were 389.427 billion yuan, 190.488 billion yuan, 144.954 billion yuan, respectively, year on year decline of 0.61%, 1.32%, 2.78%, the first half of 2018, their revenues were also achieved an increase of 2.90%, 8.50%, 7.90%, compared to the first half of this year can be seen in the performance of the three operators can be described as dismal.
In fact, the first half of this year the number of mobile users three operators still achieved growth, according to their published data show that the first half of this year, mobile subscribers, China Mobile, China Telecom, China Unicom's net increase were 9.978 million, 20.48 million , 9.317 million, which shows that they need to continue to win new subscribers, but subscriber growth and failed to promote growth performance.
It leads to such results, apparently because the three operators in the first half of this year launched a more intense price war caused by traffic. China Mobile is worthy of the boss, the data show the first half of this year, China Mobile, China Telecom, China Unicom's mobile subscribers were 935 million, 323 million, 324 million, China Unicom and China Telecom, and also the total number of users than China Mobile 288 million less, in order to attract users, China Telecom and China Unicom from 2016 began to unfold flow price war, and later pioneered the unlimited data packages to fierce price war attempt to capture traffic from China mobile users hands.
2018 data show that the number of mobile subscribers of China Telecom, China Mobile net increase over the first half of this year, China Telecom's mobile user or even a net increase of the number of net additions and even more than China Mobile and China Unicom's mobile subscribers; in under fierce price war affect traffic, 4G user traffic per capita of the three operators is also growing rapidly in the first half of this year 4G user traffic per capita three operators are more than 7GB, of which China mobile 4G users per capita traffic is up more doubled.
However, they can be seen from the results reported, although the number of users is still growing, 4G user traffic is also growing rapidly, but revenue is falling, showing fierce price war to their own traffic all had an impact, this 5G is also an impact on the commercial current propulsion.
Impact on operators resulting decline in performance
Affect the operator's performance decline is at first reflected in their tendency to 5G prudent investment. Three operators, China Mobile among the strongest far more slowly for promoting 5G 4G network construction, China Mobile is expected before the end of this year in 40 cities 5G network construction, the number of construction 5G base of around 50,000, is expected to next year before the end of the prefecture-level cities in the construction of 5G network, which is the first commercial 4G year built 700,000 5G base station coverage compared to the country can be described as slow.
Financial strength weaker China Telecom and China Unicom to promote the 5G network construction of China Mobile's relatively slowly, due to concerns about their investment even 5G 4G network construction needs of large multi far more, thanks to the high frequency leads to 5G 5G base station construction density is much 4G relatively large, they want to save 5G network investment by sharing manner; at the same time they take into account its current 4G network utilization is far lower than China mobile - China mobile were only about one-third of their 4G users, We want to provide users with more traffic by improving the utilization of existing 4G network.
Fierce price war between carriers flow was ordered a halt. After the 4G business, China Unicom and China Telecom in order to compete with China Mobile, in marketing innovation, in 2017 they have introduced unlimited data packages, China Mobile launched a strong offensive start to see the effect in 2018, April 2018 China mobile 4G users the first time a net loss - its loss for the month 4G subscribers 2.42 million in April this year, China mobile 4G users appear again a net loss, while China Telecom surpassed China mobile net increase in terms of number of users, but because they do not limited data plan triggered a huge controversy as well as a blow to the operator's performance was eventually halted the Ministry of Industry.
Subscriber growth slowed sharply, and gradually reach the ceiling. Three operators of mobile users in the first half of this year, while continuing to achieve growth, however, has slowed sharply from a year earlier, the first half of 2018, China Mobile, China Telecom, China Unicom mobile Net subscriber additions were 18.6 million, 31.66 million, 1785.5 million and visible contrast, China mobile and China Unicom mobile users in the first half of this year, the net increase over last year nearly folded, China Telecom is also one-third less, showing that operators continue to tap the mobile phone users grew more and more difficult.
Operators to develop new business. Three operators have recognized that the development of mobile phone users has touched the ceiling, the things as future growth, with China Mobile first to the layout and has won opportunities, networking connections that matter as of June this year has reached 630 million, accounting for the ratio of the number of Chinese Internet of things connected to nearly eight percent, but now things mainly narrowband Internet of things (NB-IoT), as China's commercial 5G things might enter the stage of rapid development, operators are hoping things It can bring new opportunities for them.
Three operators in the first half of the revenue decline to bring greater impact to them, forcing them to rethink current business strategy, whether fierce price war to continue for traffic, 5G, promote networking and other will be affected are questions worth considering.
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Bai Ming Technology BMtech007