Mobile revenue exceeds Telecom and Netcom; fixed-line operators eagerly await 3G

JasonYoo

Mobile revenue exceeds Telecom and Netcom; fixed-line operators eagerly await 3G [Copy link]

Mobile communications industry is booming, with China Mobile's revenue exceeding that of China Telecom and Netcom combined in the first quarter

　　Recently, the Ministry of Information Industry announced the national communication business revenue as of the end of March this year, among which the total value of national telecommunications business revenue reached 153.43 billion yuan, an increase of 11.6% year-on-year. Among them, the total number of fixed-line telephone users was 358.768 million, an increase of 8.335 million from the end of last year; the total number of mobile phone users was 404.361 million, an increase of 10.933 million from the end of last year. At the same time, the first quarter financial reports of national basic telecommunications operators including China Mobile and China Telecom were released one after another. Among them, China Mobile's first quarter revenue was 65.02 billion yuan; China Telecom's first quarter revenue was 41.76 billion yuan; China Netcom's first quarter revenue was 21.691 billion yuan. China Mobile's first quarter revenue exceeded the total revenue of the two major fixed-line operators, China Telecom and China Netcom.

　　China Mobile's revenue exceeds China Telecom + China Netcom

　　According to statistics from the Ministry of Information Industry, as of March this year, the number of mobile phone users in my country has exceeded 400 million. According to China Mobile's first quarter financial report for 2006, the number of China Mobile users has increased to 260.64 million by the first quarter of this year, with an average of 4.21 million new users per month. Comparing the two figures, China Mobile's current number of users accounts for more than 65% of mobile phone users in the country. Thanks to the rapid growth in the number of users and the rapid development of various data value-added services, China Mobile's total revenue in the first quarter of this year reached 65.02 billion yuan, and its net profit reached 14.355 billion yuan.

　　It is not just the profitability of China Mobile that is worth noting. In April this year, the two largest fixed-line operators in China, China Telecom and China Netcom, also released their first-quarter financial reports. China Telecom's total revenue was RMB 41.76 billion; China Netcom's first-quarter revenue was RMB 21.69 billion. The sum of the two is RMB 63.45 billion, which is less than China Mobile's revenue level. According to the first-quarter financial report of China Unicom, which was just released, its revenue was RMB 22.9 billion. The combined revenue of China Mobile and China Unicom has far exceeded the total revenue of China Telecom and China Netcom, the two fixed-line operators.

　　The threshold for mobile communication consumption is lowered

　　When checking the financial reports of major operators in the first quarter, the first half of last year and the whole year of last year, the reporter found that although the revenue of China Telecom and China Netcom was somewhat different from that of China Mobile, due to the historical reasons of "North-South Division", the total revenue of the two companies was always higher than that of China Mobile. However, this situation changed in the first quarter of this year. Some analysts pointed out that the continuous decline in mobile phone charges and the continuous innovation of value-added services are the advantages over fixed-line phones. In particular, the addition of various data services and the continuous sub-branding have further lowered the threshold of mobile communications and attracted a large number of new users.

　　At the same time, the fixed-line operators' PHS business cannot bring rapid revenue growth due to its single tariff advantage and obvious bottleneck in terminal update. The development of value-added services based on broadband cannot produce results quickly, making the comprehensive competitiveness of fixed-line operators gradually fall behind that of mobile phones.