Marbridge Daily

China's Three Main Telcos Add 10.6 Mln Mobile Subs in March 2020

Marbridge Consulting, 4/23/20

The listed arms of China's three main telecom operators have announced their subscriber totals for the month of March 2020, including a combined net gain of roughly 10.61 mln mobile subscribers in China, boosting their combined mobile subscriber base to 1.594 bln. The combined monthly add represents the highest increase since March 2019's rise of 11.03 mln mobile subscribers, and a major rebound from February 2020's combined net loss of 19.46 mln. Many consumers had been delaying purchase of new mobile phones in the lead-up to launch of 5G services by the three operators late last year, followed by additional downward pressure on consumption as the COVID-19 epidemic spread through China in January and February; as the operators have continued to roll out and promote their 5G services, and transmission of the virus in China has come under greater control, the market should now be better positioned for a return to more robust growth.

As of the end of March 2020, the 5G subscriber totals of China Mobile and China Telecom reached 31.72 mln and 16.61 mln, respectively. China Unicom included 5G subscribers in its mobile subscriber total for the month, but did not break out a 5G subscriber figure.

China Mobile

China Mobile (NYSE: CHL; 0941.HK) reported a net increase of 4.13 mln mobile subscribers, raising the telecom operator's total mobile user base to 946.30 mln. Of this total, 751.95 mln were 4G subscribers and 31.72 mln were 5G subscribers, representing net increases of 6.58 mln and 16.32 mln, respectively, compared to the previous month. In Q1 2020, China Mobile saw a net addition of approximately 29.17 mln 5G package subscribers, up from roughly 2.55 mln at the end of December 2019.

China Mobile defines a 5G package customer as a mobile customer who has subscribed to 5G tariff plans. Customers sharing 5G tariff plans without subscription are not included in the operator's 5G subscriber totals.

China Mobile added 2.54 mln new fixed-line broadband subscribers (registered accounts) in March, increasing its total fixed-line broadband user base to 191.14 mln.

China Telecom

China Telecom (NYSE: CHA; 0728.HK) saw a net increase of 6.15 mln mobile subscribers in March, raising its total to 336.55 mln, of which 16.61 mln were 5G package subscribers, with a net increase of 5.88 mln 5G package subscribers in March and 12.00 mln in Q1 2020 (up from 4.61 mln 5G package subscribers at the end of December 2019). Starting from January 2020, to align with the company's mobile business development strategy, the company started disclosing 5G package subscriber figures, but stopped disclosing 4G subscriber figures.

China Telecom lost 0.27 mln fixed-line telephone subs in March, reducing its total to 110.20 mln.

China Telecom added 0.44 mln fixed-line broadband subscribers (registered accounts) during the month, increasing its total to 152.32 mln.

China Unicom

China Unicom (NYSE: CHU; 0762.HK; 600050.SH) reported a net gain of 0.32 mln mobile billing subscribers during the month of March, increasing its total mobile billing user base to 311.01 mln. Of the total, 254.52 mln were 4G subscribers, with a net addition of 2.11 mln LTE subs during the month.

March marked the first month since September 2019 that China Unicom has posted a net gain in mobile subscribers.

China Unicom lost 0.38 mln fixed-line telephone subscribers in March, dropping its total to 53.47 mln.

The operator gained 0.54 mln fixed-line broadband subscribers (registered accounts) in March, raising its total to 84.83 mln.

User Base Market Share by Operator

China Mobile's share of the nation's total mobile subscriber base as of the end of March 2020 fell back to 59.37%, compared to 59.51% at the end of February 2020 and 59.34% at the end of March 2019. China Telecom's share grew to 21.12%, up from 20.87% at the end of February 2020 and 20.07% at the end of March 2019, and China Unicom's share continued to slide to 19.51%, compared to 19.62% at the end of February 2020 and 20.59% at the end of March 2019.

Mobile Subscriber Stats for China's Three Main Carriers (Unit: Mln)

Keywords: wireless China Telecom China Mobile China Unicom fixed-line broadband telecom 4G market share mobile subscribers 5G broadband subscribers CHL 0728.HK 0762.HK 0941.HK 600050.SH CHA CHU Q1 2020 fixed-line subscribers