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China Mobile will reduce its flow rate by 30% this year.

via:CnBeta     time:2018/3/23 7:01:19     readed:467

Mobile Internet traffic is still the largest source of revenue, accounting for 52% of communications services revenue. Regarding the impact of speed increase and fee reduction, Shang Bing, chairman of China Mobile, said at the performance conference that the policy will exert great pressure on the company's revenue and profit growth, but it will also bring new opportunities and will lead to more profitability. The sales method strives to keep the income basically stable.

For the government work report on mobile network traffic tariff requirements for at least 30% reduction in demand during the year, Shang Bing said that this year, China Mobile's traffic tariff will drop more than 30%. The financial report shows that China Mobile’s mobile Internet access fees declined by 36% and 43% in 2016 and 2017, respectively.

In terms of 5G, China Mobile stated that it will adopt a 5G independent networking standard and will start 5G scale experiments in 17 cities this year. In addition, at the performance announcement, Shang Bing also revealed that he is also studying mixed changes at the China Mobile subsidiary level and responding to whether or not he will return A shares.

Solid-moving integration is a development trend with a target of 21 million this year

In 2017, the number of broadband users of China Mobile increased rapidly. The annual net increase in household broadband customers was 34.95 million, accounting for 75.6% of the total new broadband market, and the total number of customers exceeded 109 million. In 2018, China Mobile’s goal in the field of fixed network is to increase its net broadband subscribers by 21 million.

China Mobile quickly entered the field of fixed network through its low-cost strategy. Although it has carried out this service for less than three years, it has surpassed China Unicom and has become the second largest fixed broadband operator. In 2017, the income from the home broadband market was 352.71 yuan, an increase of 56.6% over the previous year. In addition to the increase in the number of users, the home broadband integrated ARPU has also been rising, reaching 33.3 yuan, an increase of 17.5% over the previous year.

Shang Bing said that China Mobile’s consideration of the fixed network market mainly includes the following points. First, the development of mobile convergence (fixed mobile network convergence) is a major trend. Telecom operators at home and abroad are implementing the development of mobile convergence; second, China Mobile has increased its investment in the basic network in recent years and has a strong foundation. The architecture network helps it to enter the home market at a low cost. At present, about 70% of China Mobile's fixed network business is borne by Tower Company. In addition, the penetration rate of domestic fixed-line households is about 65%, and there is still room for growth. Therefore, China Mobile has entered the fixed-line market.

Facing the challenge of defrauding fixed-line users through price war, Shang Bing admits, “In the early stages of entering the market, we objectively stated that we were indeed lower than others in terms of price, but as we are now experiencing higher levels of smart home services, we hope to have high quality. High-value forward."

17 cities begin 5G scale experiment

Regarding the deployment of 5G, Shang Bing said at the performance conference that China Mobile attaches great importance to the development of 5G. “Maintaining this leading edge is very important for our future sustainable development.”

In 2018, China Mobile’s estimated capital expenditure is 166.1 billion yuan, which is 6.4% lower than that in 2017. It is used to upgrade 4G network quality and VoLTE (high-definition voice) services, and to build an all-optical broadband network. NB-IoT continuously covers all cities and counties in China. And promote the NFV / SDN network evolution and upgrade, carry out 5G scale test and application demonstration.

In the 5G standard, China Unicom does not explicitly choose 5G independent networking standards or non-independent networking standards. At last week’s earnings briefing, Wang Xiaochu, chairman of China Unicom, said: “Now the company will also consider the final decision of the entire policy based on its own resources and our relevant regulatory authorities.

China Mobile stated that it will adopt 5G independent networking standards. "A large number of operators in the United States, South Korea, and Japan are using some non-standard 5G as wireless access technology to early expand 5G. China Mobile does not want to be in this area at the moment. Walk in front." He said that China Mobile has its own capabilities in home broadband and corporate line access. “We have deployed a huge transmission network when we are preparing for 4G, including 5G development, making our fiber almost everywhere in the city. We can enter businesses and homes in the shortest possible time." As a result, China Mobile has no need for wireless broadband access using 5G non-standard technologies. "We don't want to work on non-standard 5G. We focus on 5G individuals. Users and vertical industry users."

China Mobile will start 5G scale experiments in 17 cities this year. Among them, 5 cities will conduct network-side experiments, 12 cities will conduct 5G application experiments, and they will try commercial applications by 2019, and 5G will go to market by 2020.

5G will usher in the era of interconnection of all things, and the application scenarios and business models of 5G are still being explored. Shang Bing said that it will attach great importance to the input and output of 5G and focus on the maturity and robustness of business models. He said that he is very concerned about the 5G terminal, chip-side and application models, and is investing more in application scenarios, including research on the Internet of Things, car networking, artificial intelligence, and robotics.

In addition, at the press conference, Shang Bing also revealed that it is also studying the mixed reform of China Mobile's subsidiary. He said that mixed ownership reform is a new vitality to the company in terms of system and economy. "Now we have been paying attention to it and we have been following up on how we are affiliated to the subsidiary level."

When asked if China Mobile would return A shares and issue CDRs, Shang Bing said that it is very concerned about CDR and that China Mobile’s funds are relatively lenient. When CDR is issued, “mainly considering that our users can share the development of the company in China. The results are more conducive to the development of the company. However, there are no clear regulations and methods. We will pay close attention to it."

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