China Telecom cuts Opex, improves revenue in H1 2017

China Telecom has posted operating revenue of RMB 184.118 billion (+4.1 percent), service revenue of RMB 165.847 billion (+6.8 percent), EBITDA of RMB 52.414 billion (+3.7 percent) with EBITDA margin of 31.6 percent and net profit of RMB 12.537 (+7.4 percent) in the first half of 2017.

China Telecom’s capital expenditure (Capex) was RMB 41.1 billion in H1 2017 – driven by investment in fibre and 4G networks.

The company made 43.4 percent of its Capex investment in mobile network, 38.6 percent in broadband and Internet, 7.2 percent in information and application services, 2.4 percent in IT support, 8.2 percent in infrastructure and other areas.

China Telecom is aiming to have 1.16 million 4G BTS in the country as part of adding more coverage.
The net increase of mobile subscribers was 14.85 million, reaching a total of 230 million and market share increased to 16.8 percent. The net increase of 4G users was 30.15 million, reaching a total of 152 million. Market share increased to 17.2 percent while the penetration rate of 4G users increased to 66 percent.

The handset Internet data traffic increased 126 percent while the DOU of 4G users reached 1.4GB, representing an increase of 56 percent. The net increase of wireline broadband subscribers was 4.98 million, reaching 128 million.
The net increase of FTTH subscribers was 11.24 million, reaching 117 million while the penetration rate reached 92 percent.

The company is constructing three superior networks, namely 4G network, IoT network and all-fibre network with further reinforcement of network edges.

China Telecom is planning outdoor trial of 5G in 2017-18 and commercial trial in 2019 as part of its strategy to migrate from 4G to 5G.
China Telecom created platforms, open capabilities, promoted precision management, precision marketing, delicated service and lean network operation.

China Telecom has achieved reduction in operating cost while improving operational efficiency. China Telecom followed three initiatives (Transformation 3.0), namely network intelligentisation, service ecologicalisation and operation intellectualisation.

“Revenue structure of the company was optimized. The mobile handset Internet access revenue, being the top revenue growth driver of the company, increased 35 percent. Revenues from Smart Family, new ICT applications, Internet of Things (IoT) and Internet Finance increased 23 percent,” said China Telecom CEO Yang Jie.

Baburajan K