China Telecom's 2022-23 Corporate Highlights & Key Developments

China Telecom’s 2022-23 Corporate Highlights & Key Developments

7 Minutes Read

In the fast-paced world of telecommunications, China Telecom (CT) has emerged as a trailblazer, steering the industry’s transformation in 2022 and beyond. We delve into the key developments and corporate highlights that have defined CT’s journey, showcasing its impact on the digital landscape and technological integration. Here, we provide insights into CT’s pivotal role in shaping the future of the industry.

Digital Economy Integration and Financial Success

In 2022, CT embarked on a journey immersed in the digital economy, guided by customer-centric principles. The results were remarkable. With a steadfast commitment to enhancing digital products and services, the company witnessed impressive financial growth. Operating revenues for 2022 soared to an impressive $67.7 billion USD, marking a robust 9.5% year-on-year increase. Equally impressive, service revenues reached $61.2 billion USD, reflecting an 8.0% year-on-year growth.

Enabling the 5G Revolution

CT embraced the 5G revolution with vigor, continuously upgrading its 5G network and applications. The company expanded 5G network coverage and quality to provide users with a secure, reliable, and intelligent mobile communication experience. Furthermore, they optimized bandwidth-hungry applications like 5G Ultra HD, 5G Cloud VR/AR, and 5G Cloud Games to cater to diverse customer needs.

Additionally, CT seamlessly integrated AI, security, and cloud elements into its offerings, launching products like AI Communications Assistant and AI Color Ringback Tone for individual customers. Security-integrated products, such as Quantum-encrypted Calls, and cloud-integrated products, like China Telecom Cloud Mobile Phone and Cloud Drive, showcased their commitment to information consumption.

Smart Family and Community Development

Recognizing the potential of smart families, communities, and digital villages in the digital era, CT accelerated the upgrade of broadband speed, promoting high-speed access for smart families. The penetration rate of Gigabit subscribers saw a significant year-on-year increase of 9.1 percentage points. The company enriched the supply of applications under family scenes and aimed to evolve from Smart Home to Whole-home Intelligence.

Furthermore, the integration of Smart Family, Smart Community, and Digital Village platforms enabled communities and villages with advanced solutions for grassroots governance, emphasizing the company’s role as a catalyst for positive change.

Driving the Second Growth Curve with a Four-Integrated Strategy

CT’s “Four-Integrated” strategy propelled rapid growth in industrial digitalization, focusing on cloud, AI, security, and platforms. They expanded their presence in emerging fields such as AI and security, building the industry’s first billion-parameter large-scale model for urban governance and launching innovative security products. Revenue from Industrial Digitalization in 2022 reached an impressive $18.5 billion USD, representing a year-on-year growth of 19.7%.

Digital Transformation at Its Core

CT placed a strong emphasis on digital transformation, optimizing products, channels, sales, marketing, and services. By leveraging AI and Big Data technologies, they enhanced precision marketing and service capabilities, fortifying their position in the industry and bolstering customer satisfaction.

Building a Digital Information Infrastructure

As a major player in building Cyberpower and Digital China, CT accelerated the construction of an intelligent integrated digital information infrastructure, spanning computing power, Gigabit fiber networks, satellite communications, and security. Their commitment to network and information security was unwavering, with efforts spanning energy-saving technologies.

H1 2023: A Seminal Leap in Tech Integration and Shareholder Value

Fast forward to the first half of 2023, and CT continues to lead in technological integration, driving impressive financial gains and pioneering advancements. Here are the highlights:

  • The Surge of Technological Integration and Financial Resilience: CT’s dedication to technological integration, especially through cloud adoption, has paid off. Service revenues have climbed by 6.6% year-over-year, surpassing industry averages and maintaining a decade-long growth trajectory. This push has also resulted in a substantial net profit increase of 10.2%, paired with a net profit margin uplift of 0.2 percentage points.
  • Escalating R&D Investments and Proprietary Technology Growth: R&D investments have surged by 27% year-over-year, fostering breakthroughs in cloud services, networking, big data, AI, security, and quantum computing. Proprietary technology listings have grown by 124%, with proprietary systems now constituting nearly 40% of all IT and business platforms.
  • Triumphant Growth of China Telecom Cloud: The cloud services division has seen a remarkable revenue increase, marking a 63.4% year-over-year growth. China Telecom Cloud has solidified its leadership in government public cloud infrastructure and Desktop-as-a-Service.
  • AI Enhancements and Strategic Infrastructure: CT’s AI ventures have been significantly enhanced, with comprehensive algorithm warehouses and a focus on intelligent solutions. The company’s strategic capital expenditure has optimized tech integration, expanding intelligent computing power and IDC offerings.
  • Operational Efficiency and Shareholder Value: Tech integration has driven operational efficiency, reducing costs while increasing intelligent customer service volume and overall FTTH port utilization. A proposed dividend signals CT’s commitment to shareholder value, with plans to increase distributions further.
  • Reforms and Global Alliances: CT is committed to deepening corporate reforms and strengthening international partnerships, setting the stage for sustainable corporate growth.
  • Envisioning a Global Enterprise: With its strategic agenda, CT aims to evolve into a globally recognized enterprise, focusing on tech integration and customer engagement to build a secure, service-oriented business that shares its milestones with shareholders and the broader community.

In conclusion, CT’s journey from 2022 to 2023 showcases a remarkable transformation marked by innovation, growth, and commitment to delivering cutting-edge technology and services. As CT continues to shape the digital future, their impact on the telecommunications industry remains significant, promising a better digital life for all. Contact China Telecom Americas today to discover how we can enable your business with cutting-edge network solutions and technological integration. Together, we can shape the digital landscape and unlock new possibilities.