On April 29, Datang Telecom released its 2020 annual report. According to the report, Datang's annual net loss was 1.364 billion yuan. From 2016 to 2020, Datang worried that it would be in a state of loss, with a loss of more than 7.7 billion yuan. In contrast, Huawei's net profit in 2020 will be as high as 64.6 billion yuan.
At the end of 1990s, the local power of China's communication market began to rise. On September 21, 1998, Datang Telecom was established under the leadership of the Institute of Telecommunications Science and technology.
As a state-owned enterprise, the first ten years of the 21st century can be regarded as the glorious period of Datang Telecom. Together with Siemens, it launched the TD-SCDMA 3G network standard, which has been adopted by 3GPP, an international communication technology standard organization, and has become the three major 3G international standards in parallel with WCDMA and CDMA2000.
At this time, Huawei and the center have not yet formed enough technical strength, so they are not rivals of Datang Telecom.
However, due to the late start of domestic 3G. Until 2009, 3G communication was officially commercialized in China, which was nearly five years later than that in Europe and the United States and other countries. By 2014, 3G communication, which was only five years commercialized, was replaced by 4G communication. Generally speaking, the commercial time of the first generation communication is about 10 years, which means that under the time limit, the input-output ratio of Datang Telecom in 3G is reduced.
On the other hand, there is only one 3G network using TD-SCDMA in China. I believe we all know the quality of 3G network. Therefore, China Mobile is also the first telecom operator to give up 3G and embrace 4G.
In 2014, China began to turn to 4G network construction, however, the main product of Datang Telecom is still TD-SCDMA. On the contrary, in the same year, Datang Telecom began to set foot in semiconductor chip design, established Datang semiconductor design Co., Ltd., and then acquired the mobile phone business of Marvell, an American chip company.
However, the chip technology level of Datang Telecom is relatively weak in the same industry, and the gross profit rate is low, so it is difficult to form competitiveness. Therefore, the semiconductor business has not been able to bring the expected profit to the company.
Although Datang communication is now in a state of continuous loss, the company's focus in the future will continue to explore the field of integrated circuit design, information and communication security, and expect them to have a chance to turn over!