Three major operators released 2016 operational data: China Mobile is riding a dust

With China Telecom's December operating data released, the three major operators have surrendered user operations data for the full year of 2016.

China Mobile's mobile subscribers increased by 1.651 million in December 2016, bringing the total to 849 million; 4G subscribers increased by 25.205 million, and the total number of 4G subscribers reached 535 million. There are 222 million users. In terms of fixed network, China Mobile added 440,000 broadband subscribers in December last year, with a cumulative increase of 22.595 million in the whole year, and the cumulative number of subscribers was 77.624 million.

In December 2016, China Unicom posted a net increase of 832,000 mobile subscribers, reaching a total of 263.8 million; 4G subscribers increased by 5.512 million in December, reaching a total of 104.6 million. In the fixed-line business, broadband users decreased by 166,000 in December, accumulating 75.236 million. Local telephone users posted a net decrease of 1.069 million in December, accumulating a total of 66.649 million.

China Telecom's mobile subscribers increased by 890,000 in December 2016, with a net increase of 10.6 million in the whole year, reaching a total of 215 million; 4G users increased by 4.57 million, and the total number of 4G users reached 122 million. In the fixed-line business, broadband users increased by 890,000 in December, and the cumulative increase in 2016 was 10.06 million, a cumulative increase to 123.12 million.

On the whole, the demographic dividend factor is rapidly fading, and the three major operators have begun to enter the era of stock user operations. They are all trying to speed up the migration of 2G/3G users to 4G. In this process, China Mobile relies on the first-mover advantage, the penetration rate of 4G users has reached 63%, China Telecom's 4G users accounted for about 56.7%, and China Unicom only 39%. However, China Unicom has already realized this problem. Under Wang Xiaochu’s “focus” strategy, it is accelerating 4G network construction and marketing.

Not only in the 4G, the three major operators have also launched fierce competition in the fixed-line broadband market. With great financial resources, China Mobile has made a big push against the Jinyuan, which has caused great pressure on China Telecom and China Unicom. China Unicom also experienced a net loss of fixed-line users in the 11/12 months of 2016, and the loss exposure is still expanding. It should be pointed out that although the fixed-line broadband service is not as good as the mobile network in terms of ROI, the fixed-line service is an important carrier for cutting into and maintaining the family market, and it can also generate cash flow continuously. If China Unicom does not adjust in time, it will face greater pressure in the follow-up market competition. Under the current industrial structure, deeper cooperation with private capital may be a way out.

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