China Telecom's 2016 development strategy: we must seize the 4G replacement window

China Telecom's official WeChat disclosed the adjustment of the main leaders of the group company. Yang Jie was the chairman and party secretary of China Telecom Group Corporation; Yang Xiaowei was the director, general manager and deputy secretary of the party group of China Telecom Group Corporation.

Regarding this high-level change, industry comments are optimistic.

In fact, at the China Telecom 2015 performance meeting held in late March, Yang Jie, Yang Xiaowei and Ke Ruiwen attended the meeting. Therefore, it can be considered that this high-level adjustment will not affect the established strategy of China Telecom in 2016.

China Telecom's high-level adjustments come from internal promotion, which is based on the continuation of China Telecom's own strategy. In essence, it ensures and consolidates the continuation of China Telecom and China Unicom's cooperation.

In 2016, it is a key year for China Telecom to establish a more favorable market competitive position. It will promote the reconstruction of business, network, operation and management, and provide comprehensive intelligent services. It is the core competitiveness of China Telecom to build enterprises and upgrade the “growth momentum”. To create ecological value, mainly including:

1. Grasp the scale development and value enhancement of the two basic businesses of 4G and optical broadband, and further consolidate the fundamentals of the company;

2. Accelerate the breakthrough of smart homes (mainly Tianyi HD), payment, Internet +, cloud computing and big data, and the Internet of Things, and explore new engines for growth. These five emerging businesses are the current and future development of China Telecom. the key of;

3. Continuously enhance the six key capabilities of network infrastructure, network operations, data operations, channel sales, customer service and talent teams;

4. Continue to promote comprehensive and deepening reforms, improve the precise allocation of resources, and stimulate corporate vitality and endogenous motivation;

5. Deepen Internet transformation, upgrade products and services, and improve operational efficiency;

6. Increase the intensity of open cooperation and further build the competitive advantage of the ecological circle.

In 2016, it was a very important time window for China Telecom and China Unicom.

4G development: China Telecom and China Unicom are necessary measures

Despite the advantages of FDD coverage and the sharing of towers, the overall experience of China Telecom's 4G network experience in 2015 is comparable with that of competitors. However, the network coverage is continuously improved, and the hotspot area has targeted capacity enhancement, which is conducive to improving the perception of stock users. The advancement of the solid-mobile convergence business, especially in the fixed-line broadband market, requires a defensive counterattack.

In 2015, China Telecom invested 109 billion yuan, leaning toward 4G and optical broadband services, of which 4G invested 49.3 billion. In 2016, the total investment was 97 billion, down 11.1%, of which 4G investment was 46 billion. In 2016, China Telecom's 4G base station will be upgraded from 510,000 to 800,000, perfecting and extending network coverage.

Looking at China Mobile, only 4G network investment in 2016 ~ 2016 was 80.6 billion yuan, 79.1 billion yuan, 75.7 billion yuan, 4G base stations will reach 1.4 million in 2016. China Unicom's 4G network investment in 2015-2016 will be 33.5 billion, 29.9 billion, and 4G base stations will reach 680,000 in 2016.

In 2016, the deployment of China Telecom's 4G+ will be extended from the 45 key cities in the previous year to the whole country. Currently, 10,000 4G+ base stations have been built in 45 key cities. As the forerunner of domestic carrier aggregation, the deployment of China Telecom's 4G+ seems to be a bit of a thunder, but with the rapid increase of China Telecom's 4G subscribers in 2016, 4G+ base stations and even telecom CA terminals will be re-recognized by the market.

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