According to exclusive information from insiders, eight provincial branches of China Telecom recorded a low rate of abandoning bids for government and enterprise projects in the first three months of this year. The companies mainly include Xinjiang Telecom, Chongqing Telecom, Anhui Telecom, Zhejiang Telecom, and Inner Mongolia Telecom, among others. The bid abandonment rates for these provincial branches are all below 30%. It is evident that most are branches in southern China, all of which are provincial companies with relatively good development scale within the group. Among them, Inner Mongolia Telecom, as a rare northern provincial branch, is particularly commendable.
In recent years, the development of the government and enterprise market for operators has been relatively challenging, with slowing revenue growth, difficulties in profit growth, and a continuous increase in the scale of bad debts and non-performing loans in government and enterprise sectors. Against this backdrop, if operators only focus on acquiring projects without considering cost recovery, more significant problems are likely to arise in the future.
Therefore, many operators have chosen to "abandon bids," which is actually a form of "self-protection." Firstly, it allows them to conserve more energy and financial resources for major projects while ensuring sufficient cash flow for the company. Secondly, it ensures that projects are profitable, and unprofitable projects are better left undone.
Of course, the eight provincial branches with lower bid abandonment rates mentioned above also demonstrate their development strength in the government and enterprise business sector. They likely have sufficient confidence to successfully complete high-quality projects.
Comments