Communication industry Trends Forecast for 2016


Published:

2023-05-31

The total revenue of the three major operators in 2015 was 1,278.6 billion yuan, up 2.12% year on year, and the total revenue of the three major operators in the first quarter of 2016 was 334.5 billion yuan, up 4.78% year on year.

Communication industry Trends Forecast for 2016
The total revenue of the three major operators in 2015 was 1,278.6 billion yuan, up 2.12% year on year, and the total revenue of the three major operators in the first quarter of 2016 was 334.5 billion yuan, up 4.78% year on year. The negative impact of replacing the business tax with a value-added tax began to weaken, but the revenue of the three major operators was under pressure as a whole due to the impact of the policies of "speeding up and reducing fees" and "non-clear traffic". In 2015, the net profit of the three major operators totaled 139.2 billion yuan, compared with the net profit of 139.1 billion yuan in 2014 was flat. In the first quarter of 2016, the total net profit was 29.5 billion yuan, down 7.84% year on year, mainly dragged down by the sharp decline of Unicom's net profit.

In terms of net profit, the net profit of the three companies totaled 139.2 billion yuan, which was unchanged compared with 139.1 billion yuan in 2014, while the net profit of China Mobile declined by 0.7%. China Unicom profit fell 12.7%, due to the asymmetric 4G licensing, Unicom 3G business rapidly weakened; Only China Telecom increased 13.43 percent year on year, mainly due to the growth of emerging businesses such as 4G traffic, Wing Pay, Yixin products and ICT.

The total revenue of the three operators in the first quarter of 2016 was 334.5 billion yuan, up 4.78% year on year; Net profit totaled 29.5 billion yuan, down 7.84 percent year on year, mainly due to a sharp decline in Unicom's net profit. The revenue of China Mobile increased by 8.7% year on year, and the net profit increased by 0.42% year on year; the revenue of China Telecom increased by 6.11% year on year, and the net profit increased by 1.45% year on year; and the revenue of China Unicom decreased by 5.33% year on year, and the net profit decreased by 84.83% year on year. The overall revenue of operators improved, mainly benefiting from the pull of 4G, but the structural differentiation, improved mobile performance, Unicom still has no new growth point to fill the gap of 3G business decline.

The decline in voice revenue is still the main trend among the three major operators. In 2016, the biggest decline among the three operators was China Unicom, with a year-on-year decline of 22.5%. In contrast, mobile data revenue maintained a medium-high growth rate, with the growth rate of mobile approaching 20 percent and that of Unicom and telecom approaching 15 percent. It can be seen that due to the large year-on-year base, the growth rate of mobile data revenue of operators began to decline in the second half of 2015. 

China Mobile's mobile data traffic reached 2760.6 PB in 2015, up 143.7 percent year on year. China Unicom also saw a big growth of 60.1 percent. In addition, due to the development of 4G service, the monthly average mobile phone traffic of China Mobile reached 339MB/ household/month, a year-on-year growth of 118.7%.