China Mobile’s 5g construction process is ahead of other operators, but the current 5g related business contributes very little to its overall revenue, and its commercial value needs to be further explored. Recently, China Telecom announced its mid-term performance in 2020. During the reporting period, China Telecom achieved operating revenue of 193.803 billion yuan, an increase of 1.7% over the same period last year; the profit attributable to shareholders was 13.949 billion yuan, up 0.3% over the same period last year. < / P > < p > in the first half of the year, China Telecom’s mobile users reached 343 million, with a net increase of 7.9 million, and the number of 5g package users reached 37.84 million, and the number of broadband users reached 154 million, with a net increase of 1.01 million. < p > < p > in the first half of this year, in order to cope with the epidemic pressure, in addition to speeding up 5g scale commercial operation, China Telecom is also seeking the development of new business. For more than one year since 5g was put into commercial use, the growth rate of 5g package users has not decreased. However, China Telecom still has the anxiety of 5g users’ development under the competition with China Mobile. Fu Liang, an independent Telecom analyst, believes that in addition to 5g, IDC, CDN and industrial Internet are the areas where operators are currently growing rapidly. In the future, the competition among operators will not only be limited to the C-end consumer market, but also focus on the service competition for enterprise users such as industry solutions. < p > < p > in the financial report, China Telecom said that the company should grasp the trend of economic and social digital transformation, focus on digital government, smart city, health industry, industrial Internet and other market segments, and accelerate the application of 5g industry in various fields. < p > < p > in the first half of the year, the digital revenue of China’s telecom industry was 42.9 billion yuan, accounting for 22.13% of the total revenue, with a year-on-year growth of 5.1%. Among them, IDC’s revenue was 14.5 billion yuan, with a year-on-year growth of 11.9%; the industry’s cloud revenue was 4.7 billion yuan, with a year-on-year increase of 30.4%, and the networking special line was%. In terms of cloud applications, Tianyi cloud services have now spread to individual, family, government and enterprise customers. In the first half of the year, the whole network cloud business maintained growth, with an income of about 6.7 billion yuan. It can be seen that China Telecom has a strong momentum in emerging services. In the second half of the year, China Telecom said it would accelerate the transformation to a cloud centered industrial digital development model, aiming to achieve double-digit growth throughout the year. At the same time, in terms of smart home and cable broadband, China Telecom will focus on the development of home informatization, increase broadband and smart home service upgrading, and achieve a net increase of 5 million broadband users throughout the year. In May 2019, China Telecom chairman Ke Ruiwen said that China Telecom would build a smart home system with “five intelligences” as the main content. The “five intelligences” include intelligent broadband, smart home platform, intelligent applications, intelligent security and intelligent services. < p > < p > in the first quarter of this year, affected by the epidemic situation, China Telecom’s net profit decreased, but the income from smart home applications and services increased by 106.3% year-on-year. < p > < p > in the first half of the year, the number of broadband users reached 154 million, and that of cable% reversed the downward trend. In the field of smart home, the income of smart home applications and services reached 1.2 billion yuan, an increase of 131% over the same period of last year, including 25 million WiFi users in the whole house, with an income of about 800 million yuan; and the number of Tianyi HD users reached 114 million, with an income of 4.2 billion yuan, an increase of 16.9% year-on-year. < p > < p > benefited from the development of smart home market, China Telecom broadband access ARPU was 38.3 yuan in the first half of the year, with a year-on-year decrease narrowed. The comprehensive broadband ARPU reached 44.2 yuan, an increase of 8.1% over the second half of last year, and recovered to the same level of last year. According to the financial report, in the first half of this year, China Telecom’s capital expenditure was 43.126 billion yuan, of which 20.153 billion yuan was related to 5g, accounting for 46.7%. In the first half of the year, China Telecom and China Unicom continued to jointly build and share 5g networks. About 80000 5g base stations were built and opened, and nearly 210000 5g base stations were in use. < p > < p > China Telecom said that it would not adjust its capital expenditure this year, but might increase 5g base stations. “Through the joint centralized purchase with China Unicom, 5g investment has saved some funds, so we will appropriately increase the construction of some base stations in the fourth quarter of this year according to the market situation and demand changes.” < p > < p > on September 9, 2019, China Telecom and China Unicom signed the “5g Network Co Construction and sharing framework cooperation agreement”, which opened the way of 5g joint construction and sharing. This year, China Telecom and China Unicom respectively plan to invest 45.3 billion and 35 billion in 5g. It is expected to complete the construction of 250000 base stations nationwide in the third quarter, and strive to complete the goal of 300000 5g base stations by the end of the year. According to the semi annual report of China Unicom, about 150000 5g base stations were jointly built and shared with China Telecom in the first half of the year. It can be seen that, up to now, both sides can complete the goal of 5g base station construction by the end of the year. < / P > < p > in addition to China Telecom’s plan to increase the construction of new base stations, China Unicom has also stated that it will exceed the target. Recently, Wang Xiaochu, chairman of China Unicom, said that China Unicom is speeding up the co construction and sharing with China Telecom. At present, China Unicom has built and opened 260000 5g base stations, which will reach 370000 by the end of this year. < / P > < p > however, China Mobile is still in full swing in terms of 5g base station construction. At present, China Mobile has revealed that it has built nearly 300000 5g base stations nationwide and deployed more than 300 cities. It is expected to complete the construction of 300000 5g base stations in the whole year by the end of August this year. In this case, China Telecom and China Unicom have great pressure to catch up with each other. In addition, China Mobile also has obvious advantages in the development of 5g package users. According to the report, in the first half of this year, the number of 5g package users has reached 70.199 million, and it is estimated that the net increase of 5g package customers will exceed 100 million in the whole year, which intensifies the competition of domestic operators for 5g users. < p > < p > in the first half of the year, China Telecom’s mobile subscribers reached 343 million, a net increase of 7.9 million, and the number of 5g package users reached 37.84 million, accounting for only about half of China Mobile. In terms of average income per user (ARPU), China Telecom said that 5g business continued to drive the growth of mobile users’ value, and ARPU of mobile users stabilized and rebounded compared with the second half of last year, and the year-on-year decline gradually slowed down. < p > < p > according to the data, China Telecom’s 5g package user penetration rate in June reached 11%, and the average income per user was 5g and the average income per user was 80.6 yuan. < / P > < p > in recent years, under the requirements of increasing speed and reducing fees, ARPU of operators shows a downward trend. According to financial reports in previous years, ARPU of 4G mobile service of China Telecom in 2018 was 55.8 yuan, down 14.8% from 65.5 yuan in 2017; ARPU of overall mobile service was 50.5 yuan, 8.3% lower than that of 55.1 yuan in 2017. < / P > < p > industry insiders believe that 5g is expected to improve the ARPU value of operators. With the growth of 5g package users, the decline of mobile ARPU is expected to narrow.