Detailed explanation of China Telecom's 2016 terminal strategy: subsidies doubled the layout of the Internet of Things

In 2015, China Telecom launched the “Excellent 100” terminal plan to build 4G mobile phones. With the investment of 3 billion yuan and the subsidy of 600 million yuan, the total sales volume of China Telecom terminals has increased by nearly 8 million. It has promoted China Telecom to increase its 4G penetration rate to 42%.

On the basis of last year, Gao Tongqing, deputy general manager of China Telecom, said that this year, it will invest 7 billion yuan to promote terminal upgrades, and promote the annual 4G users from 60 million to 160 million this year. In addition, China Telecom will strive to make breakthroughs in areas such as the Internet of Things and promote the upgrading of broadband products such as smart homes and smart enterprises.

Detailed explanation of China Telecom's 2016 terminal strategy: subsidies doubled the layout of the Internet of Things
Focus on 4G+ and optical broadband

Gao Tongqing pointed out that in 2016, China Telecom will complete 4G national deep coverage and 4G+ network nationwide coverage, and the goal of achieving 4G network quality in China will reach 3G level in the second half of the year.

In terms of new business, China Telecom said it will promote commercial trials of VoLTE services. Among them, the corresponding specifications will be released in the first quarter of next year, joint testing will be conducted in the second quarter, and trial commercialization will be implemented nationwide in October.

In terms of user development, China Telecom expressed the hope that the proportion of 4G users in 2016 will reach 80%, of which 4G+ terminals will account for 30%.

In terms of fixed network, China Telecom will strengthen the construction of all-optical networks. It plans to achieve 100% all-optical city coverage nationwide by the end of 2016, and combine 100M optical broadband and 4G+ to create new integration and promote the terminal scale.

Detailed explanation of China Telecom's 2016 terminal strategy: subsidies doubled the layout of the Internet of Things
7 billion yuan to build seven funds

In terms of channel construction, China Telecom has proposed a 7 billion yuan “Excellent 100” seven fund plan, which is basically 100% growth compared to last year’s 3.6 billion yuan.

The specific plans are as follows: 1. 2.2 billion yuan development fund for sales incentives for excellence 100 terminals; 2,600 million yuan custom funds for 4G+, NFC, single card, encryption, intercom mobile phones and other customized machines; 3 150 million yuan debut fund, for the unified listing of the excellent 100 terminal in the country; 4, 150 million yuan for the old exchange fund; 500,400 million channel direct subsidy fund; 650 million yuan underwriting incentive fund; 7, value The 3 billion yuan flow cooperation fund is mainly used to apply featured mobile phones.

At the same time, China Telecom also announced the inclusion of specific terminals in the "Excellence 100" program. Among them, the subsidy for the six-mode full Netcom mobile phone was released, the short-listed standard of the 300-700 yuan terminal was halved, and the short-listed standard for the featured terminal was halved.

China Telecom said it will continue to promote the "4G+" and "six-mode full Netcom" terminals to promote the continued growth of terminal sales.

Detailed explanation of China Telecom's 2016 terminal strategy: subsidies doubled the layout of the Internet of Things
Layout of the Internet of Things

China Telecom said that in 2016, the Internet of Things will be fully integrated and new markets will be expanded. This brand-new blue ocean market will be developed as a new strategic basic business of China Telecom, and we will strive to expand the scale of the traditional mobile business in 3-5 years. New market.

The relevant person in charge pointed out that China Telecom will build the Internet of Things industry by taking the platform, making exclusive products, promoting the maturity of the upstream industry and focusing on key industries.

In terms of terminals of the Internet of Things, China Telecom said that it will expand its industry through the underwriting model of pre-order and post-production, and strive to sell more than 10 million IoT terminals in 2016.

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