5G spending of the three major operators decreased, and the number of package users increased

The three major operators recently released their first-half performance reports, with both operating income and net profit growing significantly. The total number of 5G package users is nearly 500 million, of which China Mobile has 251 million 5G package users, China Telecom has 131.15 million 5G package users, and China Unicom has 113 million 5G package users. According to official data from CNNIC, as of June 2021, the number of 5G mobile phone terminal connections of the three basic telecommunications companies reached 365 million, a net increase of 166 million from December 2020. The proportion of 5G mobile phone shipments in total mobile phone shipments is increasing. In the first half of 2021, domestic mobile phone shipments reached 174 million, a year-on-year increase of 13.7%, of which 5G mobile phones reached 128 million, a year-on-year increase of 100.9%.

In terms of infrastructure, according to the performance reports of the three operators, China Mobile has opened 501,000 5G base stations, with a full-year target of more than 700,000; China Telecom and China Unicom have jointly built and shared 5G base stations, and currently both parties have 460,000 5G base stations in use, with a full-year target of 700,000. According to CNNIC data, my country has opened a total of 961,000 5G base stations, and 5G networks have covered all prefecture-level cities, more than 95% of county areas, and 35% of township areas across the country.

From the perspective of 5G construction expenditure, the expenditure of the three major operators has declined. It is reported that China Mobile's investment has been slightly delayed compared with last year because the details of the joint construction of the 700MHz frequency band with China Radio and Television are still being negotiated. China Telecom and China Unicom intend to control the pace of investment, improve equipment utilization efficiency, and wait for 5G technology and standards to mature.