Core Insights - In the first half of 2023, China Mobile achieved operating revenue of 530.7 billion yuan, a year-on-year increase of 6.8%, with communication service revenue reaching 452.2 billion yuan, up 6.1% [1] - The net profit attributable to shareholders was 76.2 billion yuan, reflecting an 8.4% year-on-year growth [1] - The company reported comprehensive growth across personal, family, government, enterprise, and emerging businesses [1] Revenue Breakdown - Personal market revenue reached 259.4 billion yuan, a 1.3% increase year-on-year, with mobile customers totaling 985 million, netting an increase of 10.38 million [2] - Family market revenue was 64.9 billion yuan, up 9.3%, with broadband customers reaching 255 million, netting an increase of 11.15 million [2] - Government and enterprise market revenue was 104.4 billion yuan, a 14.6% increase, with the number of government and enterprise customers reaching 24.3 million, netting an increase of 1.1 million [2] - Emerging market revenue, including services like Migu Video and cloud gaming, reached 23.5 billion yuan, up 18.4% [2] Digital Transformation - Digital transformation revenue reached 132.6 billion yuan, a 19.6% increase, contributing 84.1% to the growth of communication service revenue, and accounting for 29.3% of total communication service revenue [2] Capital Expenditure - Capital expenditure for the first half of 2023 was 81.4 billion yuan, a reduction of approximately 10 billion yuan compared to 92 billion yuan in the same period of 2022 [3] - The full-year capital expenditure plan for 2023 is set at 183.2 billion yuan, comparable to 185.2 billion yuan in 2022, indicating an increase in spending in the second half of the year [3] Infrastructure Development - By the end of June 2023, China Mobile had opened 1.761 million 5G base stations, serving 393 million 5G network customers [3] - The company is advancing its 5G evolution and has completed key technology trials for 5G-A [3] Computing Power Network - China Mobile is enhancing its computing power service capabilities, with a total of 478,000 IDC racks available, and over 804,000 computing power servers deployed [4] - The company has achieved the longest 400G all-optical network transmission distance in the world, covering 5,616 kilometers [4] R&D Investment - Research and development expenses for the first half of 2023 were 8.5 billion yuan, a 21.6% increase, representing 1.6% of operating revenue [6] - The company is leading in 5G-A technology and has made significant progress in 6G research and development [6] - China Mobile has developed an AI platform and is actively collaborating with over 1,300 partners to enhance the industry chain [6]

Core Viewpoint - The Chinese economy shows resilience with a GDP growth of 5.3% in the first half of 2025, but the telecom industry faces stagnation, with telecom revenue growth at only 1.4%, significantly lagging behind GDP growth [1][2]. Group 1: Industry Challenges - The telecom industry's growth has been hindered by the saturation of traditional business models, with mobile phone users exceeding 1.8 billion and fixed broadband users nearing 600 million, leading to a decline in revenue from mobile data services [2][3]. - Intense price competition among telecom operators has resulted in a race to the bottom, where marketing costs remain high while average revenue per user (ARPU) has stagnated or declined [3][4]. - The shift towards digital transformation has not yielded expected results, with growth in digital revenue slowing significantly, indicating that operators are struggling to adapt to new market demands [5][6]. Group 2: Structural Issues - The telecom sector's lagging growth compared to GDP is attributed to a structural imbalance, where the rapid expansion of the digital economy outpaces traditional telecom services [8][9]. - The contribution of telecom revenue to GDP growth has diminished, with the multiplier effect dropping from 1.7% to 0.8% by 2025, reflecting a reduced impact on the broader economy [9]. Group 3: Strategic Recommendations - To overcome stagnation, the telecom industry must transition from a volume-driven model to a value-driven approach, focusing on service differentiation and industry-specific solutions [10][11]. - Strengthening technological capabilities in emerging fields such as 6G and quantum communication is essential for maintaining competitive advantage [11]. - Building collaborative ecosystems with internet companies and manufacturers can enhance operational efficiency and drive innovation, as demonstrated by successful joint projects [11][12].

Core Viewpoint - The article critiques the current state of 5G technology, highlighting the gap between its promised revolutionary applications and the reality of its usage, which has largely devolved into basic speed tests and limited industrial applications [1][3][16]. Group 1: Investment and Infrastructure - In 2019, major telecom operators invested over 1 trillion yuan to build 5G infrastructure, resulting in 2.844 million 5G base stations across China, achieving 100% coverage in county-level cities [3]. - Despite the extensive infrastructure, the average revenue per user (ARPU) for telecom operators increased only by 5 yuan, indicating a lack of profitability from the 5G investments [6][12]. - The operational costs for maintaining 5G networks are significantly higher, with individual base stations consuming three times the electricity of 4G, leading to substantial annual electricity costs [12]. Group 2: Application and Market Reality - The most common application of 5G has been for speed testing, with users primarily sharing speed test screenshots on social media, rather than utilizing advanced features like remote surgeries [3][16]. - Many enterprises are still relying on traditional applications, with 90% of businesses using 5G for basic surveillance rather than innovative solutions [3]. - The automotive industry, which was expected to leverage 5G for autonomous driving, continues to rely on 4G and WiFi due to insufficient 5G infrastructure [9]. Group 3: Competitive Landscape - The competition among domestic companies like Huawei, ZTE, and Datang has led to a drastic reduction in base station prices, resulting in thin profit margins [14]. - Internationally, companies face challenges from patent wars, with Qualcomm charging fees to both smartphone and automotive manufacturers, complicating the market dynamics [14]. - Apple has emerged as a significant beneficiary, achieving a 38% gross margin on 5G smartphones, while Chinese companies struggle with low profitability in network infrastructure [14]. Group 4: Future Outlook - The article suggests that the hype surrounding 5G has transitioned into a more cautious perspective, emphasizing that technological breakthroughs must be matched by viable commercial applications to succeed [16]. - The experience with 5G serves as a lesson for future technologies like 6G, indicating that without practical applications, even the fastest networks may not deliver value [16].