Behind the double-digit growth of China Telecom's net profit in 2021: the cloud change strategy has opened a new situation

(Reporter Du Feng) On March 17, China Telecom announced its 2021 performance report. According to the annual report, China Telecom achieved operating income of 434.16 billion yuan in 2021, an increase of 11.3% year-on-year; and achieved a net profit of 25.952 billion yuan, an increase of 24.4% year-on-year.

In 2021, China Telecom achieved double-digit growth in revenue and profit, and delivered excellent answers. China Telecom said that in 2021, the new generation of information and communication technology will accelerate innovation, And China Telecom will actively seize the strategic opportunity, implement the strategy of "cloud to digital rotation", further promote the integration of cloud and network, promote the reform of institutional mechanisms, drive the basic business and industrial digital business two-wheel drive, and significantly accelerate business development.

Business innovation unleashes the momentum of multi-point blossoming

With the in-depth promotion of 5G commercialization and the acceleration of industrial integration and development, in 2021, China Telecom's performance has grown steadily, and in 2021, the service revenue will be RMB402.8 billion, an increase of 7.8% year-on-year, excluding the impact of the revenue of the sale of subsidiaries, the year-on-year increase will reach 8.1%, and the growth rate will be higher than the industry average for 5 consecutive years. The rapid penetration of 5G users, the integration of zhijia business, and the accelerated development of industrial digitalization have shown a good trend of individuals, families and government affairs going hand in hand, and multi-point blossoming.

China Telecom disclosed that by the end of 2021, the company's mobile users reached 372 million, the net increase in users remained industry-leading for four consecutive years, and the penetration rate of 5G package users exceeded 50.4%, continuing to lead the industry average. According to the latest user data, in January 2022, the number of mobile subscribers of China Telecom increased by 3.07 million to a total of 375.5 million; of which the number of 5G package users increased by 8.26 million, and the penetration rate increased to 52.2%, reaching a total of 196.06 million, continuing the high growth trend.

The value of smart home services has emerged, and by the end of 2021, China Telecom's wired broadband subscribers will reach nearly 170 million. Benefiting from the growth in demand for smart homes, in 2021, the company's fixed network and smart home service revenue reached 113.5 billion yuan, an increase of 4.1% year-on-year, the penetration rate of smart home business users such as whole house WiFi and Tianyi Kanjia increased rapidly, the smart home income increased by 25.1% year-on-year, the broadband integrated ARPU10 reached 45.9 yuan, an increase of 3.4% year-on-year, and the contribution of smart home value increased significantly.

The rapid growth of industrial digitalization, thanks to the rapid development of IDC, industry cloud, and other emerging services, the growth rate of digital services in China's telecommunications industry has been remarkable. In 2021, the revenue of industrial digitalization reached 98.9 billion yuan, a comparable caliber increased by 19.4% year-on-year, and the growth rate was significantly higher than that in 2020. Tianyi Cloud's revenue doubled to 27.9 billion yuan, ranking first in the industry and maintaining a leading position in the government affairs public cloud market.

Cloud-network integration consolidates the foundation of high-quality development

In 2021, China Telecom will deeply implement the strategy of "cloud to digital transfer", accelerate the construction of new information infrastructure integrated with cloud and network, actively complete the strategic layout of scientific and technological innovation, ecological cooperation and other fields, adhere to the concept of low-carbon green development, and promote the high-quality development of enterprises.

In terms of personal value enhancement, China Telecom creates a high-quality 5G service experience, with "5G + Tianyi Cloud" as the user Tianyi Cloud Disk, Tianyi Ultra HD, Tianyi Cloud VR, Tianyi Cloud Games and 5G Video CRBT and other 5G featured applications, jointly with partners, launched more than 100 ecological rights, promote the upgrading of personal emerging information consumption demand, and drive the scale and value of mobile users.

In the integration and development of smart home, Based on the cloud network integration capability, China Telecom integrates "Gigabit broadband + whole house WiFi + Tianyi HD + Zhijia application", brings together content applications and pan-intelligent terminal industry ecology with the Zhijia platform, promotes the interconnection of smart home products, expands comprehensive intelligent information services such as Tianyi HD, whole house WiFi, whole house intelligence, and cloud services, enriches the connotation of smart home digital life services, and fully meets the upgraded information needs of family users such as online education, remote office, and video entertainment. Provide intelligent integrated solutions for the whole house to promote the upgrading of life consumption quality.

In terms of industrial digitalization, China Telecom deeply integrates the elements of the digital economy and the real economy, gives full play to the advantages of cloud-network integration and rich reserves in the field of industrial digitalization, and empowers thousands of industries.

On the one hand, we will build a digital application platform to provide end-to-end solutions through the three major capability hubs of business middle office, data middle office and security middle office, and empower the digital transformation of transportation and logistics, energy, medical care, government affairs and other industries with core technology applications such as 5G+ machine vision, 5G +AI, and 5G+ fine positioning.

On the other hand, the new upgrade of Tianyi Cloud, Tianyi Cloud broke through the key core technologies and upgraded to a distributed cloud, bringing about the comprehensive improvement of Tianyi Cloud computing power, storage, network, operation and maintenance, cloud network security, etc., relying on 5G + industry cloud + AI to focus on covering social management, public services, ecological environment, economic regulation and other industries to the cloud, helping the digital transformation of thousands of industries.

In addition, the development of 5G custom network. The "Zhiyuan", "Bilin" and "Ruyi" 5G custom network commercial projects launched by China Telecom currently cover all the key industries of the 5G application "Sail" action plan, actively empower the transformation and upgrading of traditional industries, and lead the establishment of the Tianyi IoT Industry Alliance and the 5G Industry Innovation Alliance, which have formed 5G application solutions covering 20 types of industries and more than 200 scenarios.

Continue to change the number of clouds to promote high-quality development

In 2021, China Telecom will fully implement the strategy of "cloud to digital transformation", build differentiated comprehensive intelligent information service advantages with innovation, integration and security, and create excellent business results in an all-round way.

In 2022, we will embark on a new journey. China Telecom will unswervingly take the road of cloud change. At the 2022 annual work conference, China Telecom deployed the key tasks in 2022, clearly and comprehensively implemented the cloud-to-digital transformation strategy, and fully promoted the high-quality development of enterprises.

The official launch of the "East Counting West Calculation" project will help China Telecom to further optimize the layout of China Telecom's computing power resources and promote the further improvement of the information infrastructure layout.

At present, China Telecom is carrying out a national layout in accordance with the structure of 2+4+31+X, of which 400,000 data center racks in the 2+4 region, accounting for 80%, is expected to account for 85% by the end of the "14th Five-Year Plan". At the same time, the ratio of east and west will be further optimized, from the current 7:3 to 6:4 at the end of the "14th Five-Year Plan".

In the next step, China Telecom will give full play to the advantages of cloud-network integration, focus on the national "East Number West Computing" project and the layout of integrated big data centers, comprehensively deploy data centers, DCI networks, computing power and product services, fully promote the national "East Numbers and West Computing" project, accelerate the construction of computing power networks, build intelligent comprehensive digital information infrastructure, and empower the transformation and upgrading of traditional industries.

Looking forward to the future, China Telecom said that it will base itself on the new stage of development, from strengthening research and development in key core areas, building a customer-centric operation system, comprehensively deepening network co-construction and sharing, running the green and low-carbon concept through the whole production process, deepening the reform of institutional mechanisms, deepening the ecological layout of capital, and taking multiple measures at the same time, accelerating the transformation of development and growth mode, and promoting enterprise quality and efficiency improvement and innovative development.