Exclusive: China Telecom's Southern Provincial Unit Faces Over 70% Revenue Drop in 5G Custom Networks, Repeatedly Flagged by Group

According to informed sources, as of the first eight months of this year, a southern provincial subsidiary of China Telecom has been repeatedly flagged by the group for its underperformance in 5G custom network development. The company's revenue in this segment has plummeted by over 70% year-on-year, ranking among the lowest in the group—a situation that warrants serious reflection.

First, let’s examine the overall performance of China Telecom’s 5G custom network business. Data shows that in the first eight months of this year, the group’s 5G custom network revenue exceeded 1 billion yuan, achieving double-digit growth. While the segment initially saw negative growth early in the year, it gradually recovered to single-digit growth by mid-year, reflecting significant improvement. This progress was driven by contributions from multiple provincial subsidiaries. However, the southern provincial unit in question has become a notable laggard.

Specifically, in the first three months of the year, this subsidiary’s 5G custom network revenue growth ranked among the bottom five in the group, with a decline exceeding 80%, prompting criticism from headquarters. By the first five months, the situation had not improved—revenue remained in the bottom tier, dropping over 70%. The trend persisted through the first eight months, with the subsidiary again flagged for a revenue decline exceeding 70%.

While the subsidiary’s overall scale of operations is not among the smallest in the group, its consistently poor performance in 5G custom network revenue growth—repeatedly ranking at the bottom and drawing criticism—demands urgent attention.

5G custom networks are tailored solutions built on 5G infrastructure, designed to meet the specific needs and scenarios of various industries. The southern provincial unit’s persistent revenue decline in this segment highlights significant shortcomings in its development strategy.

It’s worth noting that despite its struggles in 5G custom networks, the subsidiary has performed well in other government and enterprise services. This report focuses solely on its 5G custom network challenges.