On the 23rd, China Telecom announced its first half of 2016 results, and the three major operators' transcripts in the first half of the year were released. China Telecom and China Mobile both showed revenue and net profit growth, and China Unicom will also experience the most difficult period. Compared with the past two years, after the three major operators experienced the shock of the transition period, the traffic management gradually became the main business, and the performance showed signs of stabilization and recovery.

Mobile net profit is 4.6 times that of the other two

According to the announcement, China Telecom achieved revenue of 176.828 billion yuan in the first half of 2016, a year-on-year increase of 7.2%, and net profit attributable to shareholders of listed companies was 11.673 billion yuan, a year-on-year increase of 6.3%. Earlier, China Mobile announced that revenue in the first half of 2016 was RMB 370.4 billion, up 7.1% year-on-year; profit attributable to shareholders was RMB 60.6 billion, up 5.6% year-on-year.

Among the three companies, only China Unicom experienced a decline in revenue and net profit. In the first half of the year, China Unicom's revenue was 140.2 billion yuan, a year-on-year decrease of 3.1%, and net profit was only 1.43 billion yuan, down 79.6%. But Wang Xiaochu, chairman of China Unicom, said that China Unicom’s most difficult time is about to pass.

Horizontally, the balance of revenue between China Telecom and China Unicom is not as good as that of a mobile one, and the net profit of mobile is 4.6 times the sum of the other two profits. In terms of vertical comparison, although the growth rate of the three major operators in the first half of 2016 failed to return to the double-digit level, its performance has been steady and rising compared with the first half of 2015.

China Mobile presents revenue growth and net profit growth

In the first half of 2015, China Telecom's revenue was 164.95 billion yuan, down 0.6% year-on-year; net profit attributable to shareholders was 10.98 billion yuan, down 4.0% year-on-year.

At that time, with regard to the decline in revenue, the explanations given by the three major operators were due to the increase in the business of the reform and the transformation of the company's sales model and the decline in the revenue of the company's main business, namely, the revenue of the voice business. The decline in voice revenue is a price that must be paid during the transition period of operators in the mobile Internet era.

Traffic management becomes a trend

In the semi-annual report performance of the three major operators this year, “flow revenue” has been mentioned as the largest source of income. According to China Telecom, the monthly average traffic of 4G users reached 889MB, and the total mobile Internet traffic increased by 135% year-on-year; mobile Internet revenue increased by 42% year-on-year, accounting for 47% of mobile service revenue.

China Mobile said in the performance report that in the first half of this year, traffic revenue reached 195 billion yuan, a year-on-year increase of 26.7%, and traffic revenue accounted for 43.3% of communications service revenue. For the first time, traditional services such as voice and SMS became its largest source of income.

China Unicom said that service revenue in the first half of the year was 121.91 billion yuan, a year-on-year increase of 1.4%. Among the service revenues, non-voice services accounted for 73.1%, an increase of 4.8 percentage points year-on-year, and the business structure continued to optimize.

Before and after the semi-annual report, the three major operators announced that they would cancel the domestic long-distance roaming charges. China Telecom further stated that it should take the lead in implementing the full flow meter fee, telephone and SMS to be converted into traffic and unified billing. The initiative of the three major operators to take the initiative to break the arm has once again emphasized that the voice era has become a thing of the past and the era of traffic management has arrived.

Zhang Yue, director of the Industrial Planning and Research Institute of China Information and Communication Research Institute, said at the China Telecom 2016 Traffic Open Cooperation Conference held recently that mobile data traffic has become a strong driving force for the growth of the entire communications industry. The compound growth rate of China's data traffic will exceed the next five years. 70%, the average monthly flow will exceed 5.2EB by 2020. Therefore, traffic management becomes extremely important for operators.

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Telecom Unicom cooperation is constantly "close"

In the first half of 2016, China Mobile was ahead of the other two and still showed a crushing momentum. Because of this, from the end of 2015, the cooperation between China Unicom and China Telecom has been deepening, and there is a tendency to unite with China Mobile.

At the beginning of this year, China Unicom and China Telecom officially signed a strategic cooperation of “resource sharing and sharing, customer service quality improvement”. According to media reports, on August 19, China Telecom revealed at the 2016 Traffic Open Cooperation Conference that China Telecom and China Unicom will launch a strategic cooperation in the backward traffic business. The two sides open each other as partners and the traffic packet specifications remain the same. Does not limit partner exclusive constraints. The two sides will also cooperate on the currency currency and so on.

Will the "intimate relationship" of China Unicom go further? A few days ago, some media reported that Wang Xiaochu, chairman of China Unicom, responded again at the semi-annual report. Although Unicom and Telecommunications have a good relationship, they have not received any news from the regulatory authorities. Whether the merger is not the two companies. Management can decide. Even if it is merged, the premise is to maximize the advantages of assets and personnel. If China Mobile is interested in working with China Unicom, China Unicom will also consider it, but only if it can reduce operating costs.

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