Telecommunications Industry Insights

August 2018

The Report

"China Telecom Industry Insights" is released by Deloitte China Telecommunications industry core team. This report aims to provide senior management and industry experts with insights. It monitors the latest industry trends, probes into hot topics, latest policies and regulations in Telecom industry, deeply explores current challenges and opportunities, and thus delivers professional suggestions to readers and enterprises in this industry.


Viewpoints / key findings

The following are covered in this report including recent development, hot topics and interpretations on the latest policies and regulations, as well as opportunities and challenges in the industry:

1.   Analysis of operating and financial data of the top three telecom operators in China

  • In 2018, the top three telecom operators have begun to conduct 5G trials in major cities. Among them, China Telecom launched the China Telecom 5G Technology White Paper at Mobile World Congress Shanghai 2018. This is the first time that a telecom operator released a white paper to comprehensively address 5G technology opinion and overall strategy globally. Based on the needs of business development, network evolution and customer perception, China Telecom innovatively illustrates its "Three Clouds" overall network architecture in the white paper.
  • In 2018, mobile users' data consumption is exploding as the unlimited data packages have been widely extended by the top three operators. With the popularity of 4G and the arrival of 5G, the scale of mobile data will still remain high growth in the next few years. Furthermore, Price Scissors effect between mobile data consumption and revenue faced by telecom operators will become increasingly apparent.

2.   AI leads the future: AI and telecom operators

  • The advantages of "Cloud, Channel, Device" and the applications of big data allow operators to stand at the leading edge of information networks and connections. Equipped with the capability and experience in information application and big data, operators can exert its technologies and resources to be involved in AI research and promotion activities, and on the other hand, they can also leverage the huge amount of cash flow to increase investment in AI industry.
  • Operators will pose an important part in the industry chain of AI commercialization, mainly playing as the users of AI technology, main drivers of AI industry, as well as the providers of AI services, so as to implement the AI technologies effectively.

3.   Advanced smart city—smarter people and management

  • City executives, facing many challenges in the aspect of smart city construction, are required to jump out from the traditional perception of smart cities and carry out key lessons over overall strategic planning, operation model, data management, data security, continuous innovation and other issues in the construction of smart cities.

4.   From data audit to smart audit—seeking the way of innovation for internal audit within telecom industry

  • The applications of new technologies and concepts such as data analysis, cognitive technology, predictive analysis, agile methods, and robotic process automation (RPA) will become strategic priorities and investment focus for internal audit innovation and transformation in the coming years.

5. Updated financial reporting and regulatory related issues

6. Tax issues in the first half of 2018

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