Following the double-digit growth of revenue and profit last year, China Telecom delivered a beautiful answer in the first quarter. On April 20, China Telecom announced its first quarter 2022 performance report. According to the report, the company achieved operating income of 118.576 billion yuan, an increase of 11.53% year-on-year, of which service income was 110.024 billion yuan, an increase of 9.9% over the same period last year; net profit was 7.223 billion yuan, an increase of 12.14% year-on-year.
The double-digit growth of revenue and net profit in the first quarter of 2022 shows that China Telecom seized the important strategic opportunity of the rapid development of the digital economy, fully implemented the "cloud to digital transformation" strategy, expanded comprehensive intelligent information products and services with customers as the center, increased scientific and technological innovation, accelerated digital transformation, and achieved new results in high-quality development.
Multi-point blossoming, industrial digitalization has become the main force of growth
In the first quarter of 2022, All business segments of China Telecom achieved red across the board, and all achieved growth to varying degrees.
(Data source China Telecom Performance Announcement)
In terms of mobile communication services, in the first quarter, China Telecom's mobile communication service revenue was 49.014 billion yuan, an increase of 5.0% year-on-year, while user development also achieved steady growth, of which mobile users increased by 7.11 million, a net increase of 3.15 million in March alone, reaching a total of about 380 million households, 5G package users net increased by 22.95 million households, reaching about 211 million households, the penetration rate reached 55.5%, in the leading position among the three operators, mobile users ARPU is 45.1 yuan.
In terms of fixed network and smart home services, in the first quarter, China Telecom's fixed network and smart home service revenue reached 29.645 billion yuan, an increase of 4.9% year-on-year, the number of wired broadband users increased by 3.4 million households, reaching a total of 173 million households, the value contribution of smart homes continued to increase, smart home income increased by 22.5% year-on-year, and the broadband integrated ARPU reached 46.7 yuan.
In the first quarter of 2022, the digital business of China's telecom industry accelerated its growth, with revenue reaching RMB29.414 billion, an increase of 23.2% year-on-year.
In the digital age, industrial digitalization is the key engine to promote the development of the digital economy. Previously, Ke Ruiwen, chairman of China Telecom, said that in 2022, China Telecom will maintain the growth rate of industrial digital revenue in 2021, and strive to achieve industrial digital revenue accounting for more than 30% of revenue in the next three years.
Multiple measures are taken at the same time to drive the high-quality development of enterprises
China Telecom's first quarter performance continued the overall growth momentum of development in 2021, which is a direct embodiment of the in-depth implementation of the "cloud to digital transformation" strategy and the promotion of high-quality development of enterprises. As Ke Ruiwen said, high-quality development is not a simple high-quality development of a single product, but a coordinated high-quality development. In the 2C, 2H, 2B, 2G, and 2O markets, we must continuously improve the service value.
In terms of personal value enhancement, China Telecom leads the upgrading of personal information with 5G, continuously improves the coverage and quality of 5G networks, enriches 5G applications and rights systems, promotes the upgrading of services from connection-based integration to informatization and scenario-based integration, promotes the upgrading of personal emerging information consumption demand, and effectively drives the continuous improvement of mobile user scale and value.
In the integrated development of smart home, China Telecom focuses on the scenario-based needs of family intelligent upgrading, community intelligent management, and rural digital governance, deepens the upgrading of integrated products, comprehensively promotes digital solutions such as whole house intelligence, smart community, and digital village, creates a new digital life of wisdom sharing, and realizes multi-scenario integration, mutual promotion and linkage development. The next goal of China Telecom is to make greater efforts and spend more efforts to actively extend the linkage between digital cities and digital governments, and continue to strengthen the integration between different scenarios.
In the development of industrial digitalization, China Telecom gives full play to the market competitiveness of Tianyi Cloud, promotes customers to accelerate the "cloud with digital intelligence", enriches and innovates the 5G customized network business model, creates comprehensive and intelligent scenario-based solutions, and actively empowers the transformation and upgrading of traditional industries. In 2021, China Telecom's 5G customized network commercial projects have achieved full in-depth coverage of 15 key industries including industry, government affairs, mining, medical care, ports, etc., with more than 1,200 projects, and In 2022, China Telecom plans to land 1,500-2,000 custom network projects.
At the same time, China Telecom has given full play to its leading edge in forward-looking resource layout, accelerated the construction of computing power networks, and built an intelligent and comprehensive digital information infrastructure. As early as 2020, China Telecom has clarified the 2+4+31+X data center/cloud layout, at present, China Telecom's data centers deployed in the 2+4 region have reached about 77% of the total scale, China Telecom's data centers have reached 794, and the scale of external service racks has reached 500,000, which is the largest number, the most widely distributed and the largest IDC service provider in China.
Taking advantage of the momentum, the comprehensive cloud change turned a new game
The digital economy is rising, and China Telecom is setting sail. The demand for digital life and industrial transformation and upgrading has exploded, and the information and communication industry has ushered in a new historical opportunity. In 2022, China Telecom will seek steady progress, take advantage of the momentum, fully implement the cloud-to-digital transformation strategy, promote high-quality development of enterprises, and fully support the digital transformation of economy and society.
The construction of new infrastructure is the only way to develop the digital economy, China Telecom is accelerating the construction of a high-speed ubiquitous boutique network, accelerating the formation of a full-service capability of the integration of heaven and earth, accelerating the construction of a new information infrastructure for cloud-network integration, and continuously improving the intelligent agility capability. At present, the "East Number West Calculation" project has been fully launched, according to the "three laws of the computing power era" proposed by Li Zhengmao, general manager of China Telecom, every 1 yuan of computing power input will drive 3-4 yuan of GDP economic growth, and the driving effect of computing power on economic output is becoming increasingly obvious. Ke Ruiwen, chairman of China Telecom, said that the company will become the main force and the biggest beneficiary of the "East Counting West Calculation" project.
It is reported that in 2022, On the one hand, China Telecom will continue to promote and improve the layout of computing networks characterized by cloud-network integration to serve the development of digital economy in various regions and industries. On the other hand, China Telecom will also optimize the investment structure, planning to invest 6.5 billion yuan in IDC, build 45,000 new racks, and invest 14 billion yuan in computing power, and activate existing assets and resources through new investment.
Technological innovation has become an important driving force for the company's transformation and development, after that, Li Zhengmao, general manager of China Telecom, said: "In the future, China Telecom will strengthen market- and customer-oriented R&D investment, encourage the transformation and promotion of scientific research achievements, improve the input-output effect, and build scientific and technological innovation into a new engine for revenue and profit growth." ”
Ke Ruiwen, chairman of China Telecom, also said that in the future, China Telecom will seize the development opportunities of the digital economy. "On the one hand, it completes the layout of the RDO science and technology innovation research and development system, and runs key core technologies such as AI, network security, and quantum information through basic research, application technology research and development and operation development, on the other hand, it focuses on the four key areas of core technology research, and creates the core competitiveness of future development with scientific and technological innovation."