Information summary under the 4G tide - China Mobile at the forefront of the storm

　　Among them, communication service revenue was 284.7 billion yuan, a year-on-year increase of 6.8%. Data business revenue was 95.4 billion yuan, a year-on-year increase of 25.5%, accounting for 33.5% of communication service revenue, of which wireless Internet access business revenue was 47.4 billion yuan, a year-on-year increase of 62.2%.

　　There are 361,000 3G base stations with a network utilization rate of 25.0%; there are 4.1 million WLAN access points; the construction of more than 200,000 TD-LTE base stations has been started across the country, and 100 key cities will achieve continuous coverage of the main urban areas.

　　Overall, China's largest operator, which has been declining in recent years, is now at a critical juncture and may see another periodic performance turning point. However, if there are no new changes in its own transformation, the three operators, including China Mobile, will continue to decline.

　　This means that there will be major changes in business resources, business structure and business model. At the same time, this will also force the government to adjust its regulatory policies on the communications industry.

　　opportunity:

　　1. The country continues to implement policies to expand domestic demand and stimulate consumption, and proposes strategies to promote information consumption, which provides China Mobile with broad development space. (Technology Talk Note: On August 14, the State Council officially issued the "Several Opinions on Promoting Information Consumption and Expanding Domestic Demand")

　　2. The country encourages independent innovation of technology. The government fully supports TD-LTE as a new generation of wireless broadband technology, and its industrialization, commercialization and internationalization are further accelerated.

　　3. The ICT industry has entered the stage of social integration, forming a new industrial landscape of three types of business: communication connection, capability resources, and application information, which will bring new opportunities for China Mobile's development.

　　challenge:

　　1. Disruptive changes have taken place in the information and communication field. New business forms are being formed at a faster pace. The growth model of telecom operators has been impacted, and the revenue of traditional businesses has declined.

　　2. As the communications market becomes more saturated, homogeneous competition among communications operators becomes more intense.

　　3. Heterogeneous substitution of Internet business is becoming increasingly prominent, and cross-industry competition is becoming increasingly fierce. Changes in market demand and business structure have led to increasingly severe operating cost control.

　　China Mobile's negotiations with Apple are progressing smoothly

　　Xi Guohua, chairman of China Mobile, said after the semi-annual report that China Mobile's current negotiations with Apple are progressing very smoothly and the two sides are expected to reach a cooperation in the future. This may help Apple regain its lost ground in China, which is its most important growth market.

　　Apple is expected to launch a new iPhone next month, and may also release a low-cost version of the smartphone. Most importantly, Apple is also currently using Qualcomm's chips, which can adapt to various networks in China. At the same time, China is expected to issue 4G licenses before the end of the year, which will benefit China Mobile.

　　A meeting between Apple CEO Tim Cook and China Mobile Chairman Xi Guohua in Beijing last month sparked speculation that the two sides were close to reaching a deal.

　　Officials confirm that Guangdong Mobile General Manager Xu Long violated discipline

　　China Mobile's spokesperson confirmed that Xu Long has been removed from his positions as chairman, general manager and party secretary of China Mobile Guangdong Company. He is currently under investigation for suspected serious violations of discipline.

　　Xu Long was taken away last Friday, August 16. Before him, Guangzhou Mobile General Manager Li Xinze was taken away for investigation at the end of April. In addition, before Li Xinze, two network-related executives of Guangdong Mobile were taken away to "assist in the investigation." Currently, Guangdong Mobile is temporarily led by Deputy General Manager Gao Zhixing.

　　It is still unclear why Xu Long was taken away. However, industry insiders speculate that Guangdong is an important region under China Mobile's mobile Internet strategy, and its Internet base is also established here. The successive investigations of senior executives may be related to data business. In addition, it may also be related to network equipment, service bidding and related advertising business.

　　China Telecom proposes to lease 4G network to China Mobile

　　At China Mobile's interim results conference, Chairman Xi Guohua revealed that China Telecom has made a preliminary request to China Mobile to lease the 4G (TD-LTE) network. Currently, the two sides are still negotiating on this matter.

　　In fact, earlier this year, China Telecom Chairman Wang Xiaochu talked about the possibility of leasing China Mobile's 4G network in the future. Wang Xiaochu said that after China Telecom conducted technical and investment trials on TD and FDD 4G networks, it was concluded that FDD would require less investment. "But if the market rumors that the three major operators were issued TD licenses at the same time are true, China Telecom will lease some of China Mobile's network resources."

　　From Wang Xiaochu's speech, it can be seen that China Telecom seems to give priority to building a 4G network through FDD, but if the TD license is issued first, it will choose to cooperate with China Mobile.