The three major operators collectively experienced a "late spring cold" in February: 4G business performance was poor and broadband market growth was weak

Perhaps it was because the performance in January was too impressive that the operating data in February seemed too bleak. Recently, the three major operators successively announced their operating data for February 2019. The three operators did not continue the good performance in January, but instead collectively suffered a "spring chill".

Overall, China Mobile's operating data showed the most obvious downward trend, while China Telecom and China Unicom also saw a slight decline, but they remained at a relatively stable level. Compared with the previous month, China Mobile's net increase in mobile users, 4G users, and broadband users dropped by nearly half, especially in its proud broadband performance, which saw a cliff-like drop for the first time, with a drop of nearly three million users from the previous month.

4G business: China Telecom and China Unicom regained the lead

In February 2019, the mobile and 4G businesses of the three operators all showed a downward trend. Let’s look at mobile users first. In February, China Mobile’s mobile users increased by 1.091 million, reaching a total of 928.571 million. China Telecom’s net increase in mobile users in February was 2.96 million, reaching a total of 310.22 million. China Unicom’s net increase in February was 1.962 million, reaching a total of 319.761 million.

Compared with January, China Mobile's net increase in mobile users is less than half of the net increase in January (2.411 million). China Telecom and China Unicom also declined, with net increases of 1.3 million and 800,000 less than the previous month, respectively. In horizontal comparison, China Telecom's mobile user increase is more obvious, followed by Unicom, and China Mobile is at the bottom. In fact, throughout 2018, China Telecom had the largest net increase in mobile users among the three. Now, compared with China Unicom, there is still a gap of less than 10 million. If China Telecom continues to maintain this development momentum, it is expected to surpass China Unicom in mid-2019.

In terms of 4G business, in February, China Mobile's 4G users increased by 2.146 million, totaling 719.063 million. China Telecom's 4G users increased by 3.22 million, totaling 250.59 million. China Unicom's 4G users totaled 225.678 million, with a net increase of 2.839 million in February. In terms of 4G user growth in February, the three companies were evenly matched, but compared with China Mobile's previous high level, it can only be said that this time China Telecom and China Unicom "turned the tables."

Coincidentally, in April last year, China Mobile's 4G business also had a "surprising" scene, with a negative growth of about two million users. Fortunately, the performance throughout the year was good, and the net increase in 4G business in 2018 was good. Occasional mistakes should not be a concern for China Mobile.

China Telecom has shown its strength in mobile and 4G business. It can be seen that the accumulation of strength over the years has finally made China Telecom accelerate its progress.

Broadband business: China Mobile lacks stamina

In February, the three major operators also felt the "chill of spring" in their broadband business.

In February, China Mobile's wired broadband users increased by 1.959 million, totaling 163.503 million. China Telecom's wired broadband users increased by 520,000, down 210,000 from the previous month, totaling 147.04 million. As of the end of February 2019, the total number of wired broadband users of China Telecom and its parent company was 172 million. China Unicom's fixed-line broadband users increased by 383,000 in February, down 240,000 from the previous month, totaling 81.89 million.

In February, China Mobile's broadband user growth continued to perform well, but it seemed to lack stamina, with a drop of nearly three million users from the previous month. According to C114 statistics, China Mobile's average monthly net increase in broadband users was 3.67 million in 2018, and in January it achieved a good result of 4.854 million. This is the first time that it has fallen off a cliff since it surpassed China Telecom in September last year.

Perhaps the Spring Festival holiday caused the broadband market to grow less than expected, but we must also see the fact that my country's broadband growth rate has reached its ceiling. According to the 11th "China Broadband Popularity Report" (Q4 2018) released by the my country Broadband Development Alliance, the report shows that as of the fourth quarter of 2018, the number of fixed broadband household users in my country has reached 393.765 million, and the fixed broadband household penetration rate has reached 86.1%, an increase of 11.7% year-on-year from the end of 2017.

A good cook cannot cook without rice. In the future, the three major operators can only "steal" customers from each other in the broadband business. This dilemma is just as Liu Aili said, "a bowl of soup, a bowl of soup, pour it over and it jingles, pour it over and over again, it's still the same bowl of soup, but every time it is poured, the industry value decreases."