Net profit of the three major operators staggered in the first quarter, with a total of more than 50 million 5G users

Net profit of the three major operators staggered in the first quarter, with a total of more than 50 million 5G users
On April 23, China Telecom ‘s Hong Kong listed company released its first-quarter 2020 performance report on the Hong Kong Stock Exchange.So far, the quarterly reports of the three major operators have all been released.In the year of 5G popularity, the number of 5G package users has been the focus of outside attention.The financial report shows that China Telecom developed 12 million 5G package subscribers in the first quarter, with a total of 16.61 million subscribers; China Mobile, the industry’s eldest brother, had 31.72 million 5G package subscribers.The total number of 5G package users of telecom and mobile coaxial has reached 48.33 million.Although China Unicom has not yet released its 5G user data, the outside world estimates that it should be between millions and tens of millions.The total number of 5G package users of the three major operators has exceeded the 50 million mark, which is no longer a problem.However, the rapid growth of 5G subscribers has not had an immediate effect on boosting revenue and improving profitability.In the first quarter, both China Mobile and China Telecom’s revenues declined, and the net profits attributable to shareholders of the three listed companies all appeared.In the first quarter of this year, the mobile user traffic charges of the three major operators increased, but ARPU (average revenue per user) has declined to varying degrees.The profits of the three companies declined, and the epidemic affected the development of operator users. China Telecom pointed out in its financial report that in the first quarter of 2020, the group’s operating income was 947.9.3 billion, down 1 year-on-year.4%, of which service income is 921.3.7 billion, up by 0 from the same period last year.7%.The profit attributable to shareholders of the company is 58.2.2 billion yuan, down 2 from the same period last year.2%.For China Mobile, it achieved operating income of US $ 181.3 billion in the first quarter, which was extended by 2 each year.0%, of which communication service revenue is 168.9 billion, an increase of 1 every year.8%, shareholders’ share of profit is 23.5 billion US dollars, and earnings per share are 0.8%.China Unicom disclosed in its financial report that the company’s continuous operating income was 73.8 billion U.S. dollars, an annual increase of 0.9%; main business is 68.3 billion, an increase of 2 in ten years.3%; net profit attributable to shareholders of listed companies fell by 14.1%.From the perspective of revenue in the first quarter, only Unicom achieved growth among the three major operators, but its net profit was maximized among the three, with a decline of up to 14.1%.However, the telecommunications service revenues of the three major operators have increased to a certain extent. This is interpreted externally as the impact of the epidemic, and many offline activities have to be transferred to online. As the operator of the infrastructure provider, thereforeBenefit.However, the epidemic has a great impact on the user development of operators.China Telecom stated in the financial report that the development of the group’s users has declined due to the impact of the epidemic. The company has taken a variety of measures to actively respond to maintain smooth and stable communications, strive to mitigate the impact of the epidemic, and accelerate the upgrade of 4G users to 5G.China Unicom also said that the epidemic poses certain challenges to the company’s operations, especially in business development, new user development, 5G network construction and bad debt risks.The financial report shows that the number of mobile billing users in China Unicom dropped by 746 in the first quarter.60,000; China Mobile dropped by 3.98 million; China Telecom was the only growth among the three, but the increase was only 980,000.There is a view that the decline in mobile billing users is due to the epidemic, and a large number of operator stores have ceased to operate, resulting in the inability to conduct business and develop users; there are also representatives of this group, which is the economic impact of the epidemic, leading to some having multiple mobile phone numbersOf users have chosen to use their mobile phone numbers in unused numbers.The closure of the store also led to a reduction in the sales of operators’ mobile phones, Internet of Things equipment and other products. China Mobile said in its financial report that the business’s revenue in the first quarter of this year dropped by 34.9%.The number of 5G users exceeds 50 million, and the average household income is declining. The epidemic has also led to a substantial decline in mobile phone calls.Statistics from the Ministry of Industry and Information Technology show that in the first quarter, the duration of outgoing calls on mobile phones was 486.1 billion minutes, a decade-long decline.9%, a decrease of 11 copies from the end of the previous year; a fixed-line caller ‘s call duration of 21.8 billion minutes, a decrease of 27.4%, an increase from the end of last year 8.8 averages.In the context of the continued shrinking of voice services, operators’ communication service revenue is indeed more dependent on traffic services.According to the monitoring data of the Ministry of Industry and Information Technology, in the first quarter, mobile Internet traffic maintained rapid growth, with 357 billion GB of conversion traffic, a growth of more than 39.3%; the average mobile Internet access flow (DOU) of households in March reached 9.5GB / household, an annual increase of 30.6%, an increase of 0 compared with December of last year.91GB / household, the highest point in nearly 12 months.However, the rising traffic has not integrated the role of pushing up ARPU (average revenue per user) for mobile billing users.In the first quarter of this year, China Unicom’s mobile ARPU increased from 41 in the same period last year.2 yuan fell to 40 yuan.China Mobile’s ARPU was 46 in the first quarter.9 yuan, also lower than the 2019 average of 49.1 Yuan.China Telecom did not publish ARPU data for the first quarter, but revealed in its financial report that its citations declined during the same period last year, but the decline has narrowed.There will even be more than 50 million 5G package users, and the ARPU of the three major operators has not been improved.Some top experts told Sauna and Yeewang that this shows that the transition from 4G to 5G is a long-term process. 5G is not an overnight matter for operators to break through the revenue ceiling.As far as the current situation is concerned, in the early days of 5G popularization, the first to replace the 5G package is the user who originally had a relatively high monthly package consumption, that is, mid-to-high-end customers. This part of people switched from 4G to 5G without taking it.The increase in the cost of incoming tariffs may even be caused by the decrease in the unit traffic price of 5G compared to 4G, and the monthly tariff level has actually decreased.However, some voices pointed out that although the number of 50 million users looks huge, it still accounts for a relatively low proportion of more than one billion mobile users. It is difficult for these users to raise ARPU of mobile services by themselves, not to mention, 5000Ten thousand numbers even exceed the current total domestic 5G mobile phone sales, possibly because the operator’s statistical caliber is too wide and contains moisture.According to statistics from the China Information and Communications Academy under the Ministry of Industry and Information Technology, in the first quarter of this year, the total domestic 5G mobile phone transmission volume was 15.06 million, plus the total replacement volume of 1376 last year.90,000, less than 30 million in total, that is to say, at least 20 million 5G package users do not have 5G mobile phones.There are also speculations that in order to reduce the package tariff, some users have even replaced 5G packages without 5G mobile phones.Operators’ 5G investment will exceed 180 billion this year, and tight days may become the norm in 2020. 5G will be a competing development highland for the three major operators.According to the 2019 annual reports of the three major operators, in 2020 China Mobile expects 5G-related investment plans to reach 100 billion yuan, build 250,000 5G base stations and achieve 5G-scale commercial use in all prefecture-level cities;Capital expenditures are expected to reach US $ 350 trillion and US $ 45.3 billion, respectively, and both will strive to complete the plan to jointly build and share 250,000 5G base stations in the third quarter of this year, becoming the largest to achieve 300,000 stations.The capital expenditures of the three major operators on 5G will reach 1803 trillion in 2020, an increase of more than three times a year.The total number of base stations will exceed 600,000.Under the east wind of the new 5G infrastructure, the investment of the three major operators in 5G may increase unabated.However, some people are concerned that the scale of 5G spending has not preset revenue and profits to bring immediate improvement.In the short term, 5G may become a heavy burden for the three major operators.To proceed, Fu Liang, an independent telecommunications analyst, told Sauna that Yeewang doesn’t have much worry about the risks of 5G operations, because in fact, operators will make corresponding adjustments according to the situation in the process of promoting 5G.If the network is already mature and users have a high level of enthusiasm for using 5G, operators will change the price of underground packages. If the market is not mature enough, operators will lower their tariffs relatively slowly.Fu Liang pointed out that operating costs like electricity bills can be optimized by operators by flexibly adjusting the operating power of the network. The state will also reduce the electricity costs of operators through a series of measures.Local governments may also supplement commercial electricity for operators. After all, the local popularity of 5G networks will also bring benefits in economic development and other aspects.The three major operators are also actively grasping the informatization demand spurred by the epidemic and looking for new revenue growth points.China Telecom pointed out in the financial report that the company will take advantage of the integration of cloud and network, enrich comprehensive information services, promote the application of enterprise information for small and medium-sized enterprises, such as cloud on the cloud, Tianyi cloud conference, and accelerate the education of cloud, Tianyi cloud classroom, hospital cloudEducation and medical applications have landed, and cloud business revenue has maintained rapid growth.The revenue of China Unicom’s industrial Internet business has also reached RMB 114.4.8 billion, an increase of 32 from the same period last year.2%.”This year’s capital pressure on operators will definitely be greater.”Fu Liang said.Faced with a protracted battle in the transition from 4G to 5G, the tight days of the three major operators may become the norm.Sauna, Yewang promised editor Zhao Ze proofreading Xue Jingning