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. According to the financial report, in the first half of this year, China Mobile’s overall business performance remained stable, with an overall revenue of 389.9 billion yuan, a slight increase of 0.1% over the same period of last year, and net profit of 55.77 billion yuan, a year-on-year decrease of 0.5%. < p > < p > affected by the epidemic situation, China Mobile is speeding up the construction of 5g, and the effect of transformation to non personal market is also preliminary. At present, China Mobile’s 5g construction process is ahead of other operators, but the current 5g related business contribution to its overall revenue is very small, and the commercial value needs to be further explored. < / P > < p > according to the financial report, in the first half of China Mobile’s operating income, the proportion of non-traditional communication services (voice, SMS, wireless internet access, wired broadband services and other traditional communication services) increased by 1.4 percentage points to 16.2%, with an increase rate of 11%. From a certain point of view, the improvement of non-traditional communication business revenue supports China Mobile’s transformation. < / P > < p > in fact, as early as the end of 2016, China Mobile put forward the “four wheel drive” integration development strategy. Among them, “four rounds” refers to the main business direction of the communication industry. China Mobile is expressed as mobile market, home market, government enterprise market and new business. In November 2019, Yang Jie, chairman of China Mobile, also stressed that China Mobile’s customer market is turning from simple TOC to C (mobile market), H (family market), B (government enterprise market) and n (emerging market). Next, the government enterprise market will become the most important one among the four major markets. According to the data of China Mobile’s half yearly report in 2020, the income share of households, government enterprises and emerging markets increased by 3.3 percentage points to 29.2% and the growth rate reached 15%. Among them, only the family market and the government enterprise market have seen income growth, and the government enterprise market has the fastest growth rate. < / P > < p > under the influence of the epidemic in the first half of the year, China Mobile seized the development opportunities of government and enterprise market and promoted the development of “network + cloud + dict”. Dict includes IDC, ICT, mobile cloud, big data and other government and enterprise applications and information services. According to the financial report, its dict revenue reached 20.9 billion yuan in the first half of the year, with a year-on-year increase of 55.3%, accounting for about 5.4% of the total revenue. The mobile cloud revenue was 4.5 billion yuan, an increase of 556.4%. In the financial report, China Mobile is expected to enter the first camp of domestic cloud service providers by 2022. In addition, China Mobile revealed that the number of government and enterprise customers reached 11.29 million in the first half of the year, a net increase of 1.01 million over the end of 2019. In terms of personal mobile market, China Mobile’s mobile business revenue reached 284.3 billion yuan in the first half of the year, a year-on-year decrease of 1.7%. Over the same period, the mobile ARPU (average income per user) was 50.3 yuan, a year-on-year decrease of 3.7%, and the decline rate was further narrowed; the mobile Internet access Dou (average monthly online traffic of single user) increased by 39.7% to 8.6gb. Under the promotion of speed-up and fee reduction and unlimited competition, the flow price has been declining to about 4.3 yuan / GB. This also caused in the case of Dou rise, the operator mobile ARPU continues to decline. According to China Mobile, the ARPU of 5g users has increased by 5.9%, and the online Dou has increased by 28%. The value improvement of 5g is worth looking forward to. Fu Liang, an independent Telecom analyst, believes that although 5g has achieved rapid development compared with dict, its contribution to China Mobile’s revenue is still limited. Recently, Li huidy, vice president of China mobile communication group, disclosed that China Mobile has built nearly 300000 5g base stations in China and deployed more than 300 cities. It is expected to complete the annual construction tasks by the end of August this year, and the construction progress is far beyond the time schedule. < / P > < p > according to the plan of China Mobile, the target of 5g new base stations will be increased from 250000 stations to 300000 stations this year. By the end of the year, all cities above prefecture level will provide commercial services, and promote the SA core network to be commercial within the year. < p > < p > at the beginning of this year, China Mobile announced a plan to add 70 million 5g subscribers annually. By the end of June, the number of 5g package customers of China Mobile had reached 70.019 million, and the goal of developing 5g package users for the whole year was completed half a year ahead of schedule. < / P > < p > to this end, China Mobile has raised this target, and it is estimated that the annual 5g package customers will increase by more than 100 million. This undoubtedly intensifies the competition of domestic operators for 5g users. < p > < p > since the beginning of this year, China Mobile, China Unicom and China Telecom have been actively promoting users to migrate to 5g, and have begun to make an article on 5g package charges. Through discount, 5g traffic package, star partner, beautiful number and other ways to promote the use of migration, and attract 5g new users. Recently, the package traffic expansion announcement of China Mobile Sichuan company has also attracted a lot of attention. According to the announcement, from August 1, traffic capacity of some tariff packages will be expanded in stages. Customers don’t need to pay any extra fees. Without changing the master tariff package, customers can enjoy traffic expansion, 5g premium / super speed network services every month, and get popular app members. In addition to responding to the speed increase and fee reduction, this move also has a certain role in promoting the migration of users to 5g. < / P > < p > industry insiders believe that upgrading high-value user packages is undoubtedly a major means to promote the migration of users to 5g, and at the same time, it can improve user stickiness and avoid user churn. The growth of 5g users will also bring benefits to the growth of mobile services of operators. < p > < p > China Mobile announced in May that the parent company and China Radio and television network Co., Ltd. have signed a cooperation framework agreement on 5g co construction and sharing, as well as content and platform cooperation. < p > < p > the announcement shows that the two sides jointly determine the network establishment plan, jointly invest in the construction of 700MHz 5g wireless network according to the ratio of 1:1, and jointly own and have the right to use 700MHz 5g wireless network assets. China Mobile provides China Radio and television with a paid transmission and carrying network of 700MHz band 5g base station to China Radio and television’s contact point in local city or provincial center, and opens and shares 5g network in 2.6GHz band with compensation. < / P > < p > China Mobile will be responsible for the operation and maintenance of 700MHz wireless network, and China Radio and television will pay the network operation and maintenance costs to China Mobile. Before the commercial conditions of 700MHz 5g network, China Radio and television paid to share China Mobile 2G / 4G / 5G network to provide services for its customers. However, Chairman Yang Jie disclosed at the financial report meeting that the parent company of China Mobile has signed a cooperation agreement with China Radio and television. At present, the two sides are further discussing the details. In terms of the whole 5g cooperation this year, there is no specific and substantive network construction deployment. It is expected that the two sides will jointly build and share 5g in the next year. < / P > < p > “the two sides are still further discussing the details, and there is basically no plan to establish a joint venture company. The preliminary assumption is that China Mobile will be responsible for the specific construction and operation, China Radio and television will share some expenses, and the scheme and planning will be jointly determined by both parties. Of course, the specific content will be determined after both parties have agreed. ” Yang Jie said. < / P > < p > at the same time, China Mobile also disclosed the relevant development of 5g news in its financial report. At present, 5g new news has opened pilot sites in some regions. < / P > < p > previously, China Mobile had launched the g-news app, but it was taken off the shelves only one day after it was launched. At present, the industry still has doubts about the layout of 5g news. At that time, how China Mobile will revitalize 5g news and whether it can drive further growth in revenue will be closely watched by blue whale TMT.