First, the overall operation

Revenue from telecommunications business is comparable in scale with the same period last year. In the first half of the year, the cumulative revenue from telecommunications business completed 672.1 billion yuan, a year-on-year decline of 0.03%.

Figure 1: Cumulative growth rate of telecom business revenue from June 2018 to June 2019

Fixed telecom business revenue maintained steady growth. In the first half of the year, the three basic telecom enterprises realized fixed communication business revenue of RMB 212.5 billion, up 9.8% year-on-year, accounting for 31.6% of the telecom business revenue; and realized mobile communication business revenue of RMB 459.6 billion, down 4% year-on-year, accounting for 68.4% of the telecom business revenue.

Data and Internet business revenue entered a micro-growth channel. In the first half of the year, the three basic telecommunications enterprises completed mobile data and Internet business revenue of 308.6 billion yuan, up 0.7% year-on-year, the growth rate fell by 1.5 and 9.5 percentage points compared with the first quarter and the whole year of 2018, accounting for 45.9% of telecommunications business revenue, pulling the growth of telecommunications business revenue by 0.34 percentage points; completed fixed data and Internet business revenue of 107.6 billion yuan, up increased by 2%, accounting for 16% of the telecommunications business revenue, driving the growth of telecommunications business revenue by 0.31 percentage points.

Fixed value-added and other revenues showed rapid growth, and were the main driving force behind the growth of telecom business revenues. Telecommunications enterprises to actively develop Internet data centers, big data, cloud computing, artificial intelligence and other new businesses, driving fixed value-added and other business revenue growth. In the first half of the year, the three basic telecommunications enterprises completed the fixed value-added business income of 73.3 billion yuan, an increase of 28.1% year-on-year, driving the growth of telecommunications business income by 2.39 percentage points.

Second, the development of telecommunications users

The scale of cell phone users continued to decline, 4G users accounted for a steady increase. As of the end of June, the total number of cell phone subscribers of the three basic telecom enterprises amounted to 1.59 billion, up 5% year-on-year, but down 3.53 million from the end of last month. Among them, 4G users amounted to 1.23 billion, accounting for 77.6% of cell phone users, an increase of 3.2 percentage points from the end of last year.

Figure 2: Percentage of total 4G subscribers at the end of June 2018 ~ end of June 2019

Fixed Internet broadband access users continue to migrate to high-speed rates, and the percentage of broadband users with more than 100 megabytes is steadily increasing. As of the end of June, the total number of fixed Internet broadband access users of the three basic telecommunications enterprises reached 435 million, with a net increase of 27.37 million in the first half of the year. Among them, there were 396 million fiber optic access (FTTH/O) users, accounting for 91% of the total number of fixed Internet broadband access users. Broadband access users continue to migrate to high speed, 100Mbps and above access rate users amounted to 335 million, accounting for 77.1% of the total number of users, accounting for more than the first quarter and the end of the previous year were increased by 3.4 and 6.8 percentage points.

Figure 3: Percentage of Fixed Internet Broadband Access Users with Fiber Optic Access (FTTH/O) and Access Rate of 100Mbps and Above at the End of June 2018~End of June 2019

Penetration rate of cell phone Internet users to cell phone users has been steadily increasing. The number of mobile Internet users was 1.3 billion, with a penetration rate of 82.2% for cell phone users. 281 million IPTV (Internet Protocol Television) users, with a penetration rate of 64.7% for fixed broadband access users, an increase of 0.5 percentage points from the first quarter.

Figure 4 End-June 2018~End-June 2019 Mobile Internet Users

Third, the use of telecommunications services

The mobile Internet traffic kept doubling, and the growth rate declined month by month. In the first half of the year, the cumulative mobile Internet traffic amounted to 55.4 billion gigabytes (GB), with year-on-year growth rate dropping from 129.1% in the first quarter to 107.3%; among them, the flow of Internet access through cell phones reached 55.2 billion GB, accounting for 99.6% of the total mobile Internet traffic, with year-on-year growth rate dropping from 133.2% in the first quarter to 110.2%.The average household mobile Internet access traffic in the same month of June (DOU) reached 7.84 GB, with year-on-year growth rate dropping from 12.2% to 11.2%. GB, the year-on-year growth rate fell from 121.1% in the first quarter to 85%. The industry traffic growth rate is running at a high level, but the growth trend has entered the downward range.

Figure 5 Comparison of cumulative mobile Internet access traffic and year-on-year growth rate

Figure 6 Comparison of monthly mobile Internet access traffic and average household traffic (DOU)

The rate of decline in the volume of cell phone calls has leveled off. In the first half of the year, the cell phone de-call call duration completed 1196.9 billion minutes, down 6.8% year-on-year, the rate of decline compared with the first quarter and the whole year of 2018, respectively, expanded by 0.1 and 1.4 percentage points; fixed-line telephone call duration completed 61.4 billion minutes, down 19.3% year-on-year.

Figure 7 Comparison of the growth rate of cell phone subscribers and the growth rate of airtime

The volume and revenue of mobile SMS services maintained a growth trend. Driven by the popularization of services such as service login and identity authentication, the volume and revenue of SMS business maintained synchronous growth. In the first half of the year, the national mobile SMS business volume increased by 35.5% year-on-year, and the revenue from mobile SMS business completed 20.8 billion yuan, an increase of 6.7% year-on-year.

Figure 8: Year-on-year growth of mobile SMS business volume and revenue

Fourth, communication capacity

The proportion of fiber-optic ports has been steadily increasing. As of the end of June, the number of Internet broadband access ports nationwide reached 903 million, up 8.6% year-on-year, with a net increase of 17.76 million over the end of the previous year. Among them, fiber optic access (FTTH/O) ports reached 813 million, a net increase of 33.17 million from the end of the previous year, accounting for 90% of all ports, accounting for 0.8 and 2 percentage points more than the first quarter and the whole year of 2018. xDSL ports decreased by a net 6.51 million from the end of the previous year, and the total number dropped to 9.95 million, accounting for 1.9% to 1.1% from the end of the previous year.

Influenced by the rapid growth of IoT business and increased demand for base stations, the total number of mobile base stations reached 7.32 million, of which the total number of 4G base stations was 4.45 million, accounting for 60.8%.

Figure 9 Development of the Number of Internet Broadband Access Ports

Figure 10 Development of the Number of Mobile Phone Base Stations

The length of fiber optic cable routes maintains double-digit growth. In the first half of the year, the country built 1.87 million kilometers of new fiber optic cable lines, the total length of fiber optic cable lines reached 45.46 million kilometers, a year-on-year increase of 13%, to maintain a faster growth trend. Access network cable, local network relay cable and long-distance cable lines accounted for 63%, 34.5% and 2.5%.

Figure 11 Development of total length of fiber optic cable lines

V. Regional development

The penetration rate of fixed broadband access users with more than 100Gbps in the Northeast maintains its leading position. As of the end of June, the number of 100Mbps and above fixed broadband access users in the east, central, west and northeast regions reached 152.26 million, 79.95 million, 81.66 million and 21.49 million respectively, accounting for 78.2%, 77.5%, 74% and 81.2% of the total number of fixed Internet broadband access users in the region, with the northeast region taking the lead in the ratio slightly. The difference in the proportion of fixed broadband access users of 100Mbps and above in each province continued to narrow, with Gansu, Shandong and Qinghai ranking among the top three, accounting for more than 88%.

Figure 12100Mbps and above fixed broadband access users accounted for the proportion of the distribution of provinces (MIIT Operation Monitoring and Coordination Bureau)

Source: People's Posts and Telecommunications Newspaper

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