China Telecom Corporation Limited - Company Strategy & Performance Analysis
China Telecom is the largest fixed segment telecom operator in China, holding a market share of 46.5% in 2016 with 258.2 million subscribers; offering a broad spectrum of telecommunication and entertainment solutions. The company has strong market position in all sub-segments of the fixed market. Its internet access services includes wireless internet access services, dial-up and broadband services.
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Market leader in fixed segment
China Telecom is the largest fixed segment telecom operator in China, offering a broad spectrum of telecommunication and entertainment solutions. The company has leading market position in all sub-segments of fixed markets which includes voice and internet service. Its internet access services include wireless Internet access services, and dial-up and broadband services. The wide range of services allowed it to maintain competitive position in the market.
Weak competitive position in mobile segment
The company has a weaker position in the mobile segment as compared to the competitors. It has a very lower mobile subscriber base as compared to its competitors such as China Mobile and China Unicom. The subscriber base for China Telecom stood at 206.2 million in 2016 while the subscriptions for China Mobile and China Telecom stood at 845.7 million and 293.4 million respectively. China Mobile’s rapid technological advancements has impacted the company’s competitive position.
Growing demand for IoT to bring revenue generating opportunities
China Telecom could leverage from the growing demand of cloud computing. China is the largest and growing market for cloud computing and IoT. The government is also taking initiatives to boost the penetration of the IoT market in the country. China’s IoT market to is expected grow from US$80,000 million in 2015 to US$166,000 million by 2020.
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