In the first eight months of this year, China Telecom's dual-line business revenue showed a negative growth trend, but the decline has now narrowed significantly, thanks to the strong performance of several provincial branches.
Dual-line services refer to networking leased lines and internet leased lines. As a crucial segment in the operator's enterprise market, these services are in high demand for corporate and internet applications.
First, China Telecom's cumulative dual-line revenue for the first eight months exceeded 30 billion yuan, down approximately 1% year-on-year. Earlier this year, the revenue decline was over 5% in the first three months, which later improved to around 2% by the fifth month. The further narrowing of the decline marks a significant achievement.
Second, internet leased line revenue has turned positive. Dual-line services consist of networking leased lines and internet leased lines. Internet leased lines primarily connect enterprises to the internet, focusing on external connectivity, such as cloud migration, while networking leased lines emphasize internal corporate network interconnectivity. The positive growth in China Telecom's internet leased line revenue indicates a gradual recovery in this business segment.
Additionally, internet leased lines account for a larger share of China Telecom's dual-line revenue.
Finally, several provincial branches have contributed significantly to the revenue growth. In networking leased lines, 14 provincial branches achieved positive revenue growth, with faster growth seen in Anhui Telecom, Hunan Telecom, Hainan Telecom, Tibet Telecom, and Shanxi Telecom. However, 17 branches reported negative growth, with Zhejiang Telecom, Hebei Telecom, and Jilin Telecom experiencing sharper declines.
For internet leased lines, 11 provincial branches saw positive revenue growth, led by Zhejiang Telecom, Anhui Telecom, Guizhou Telecom, Hainan Telecom, and Shanxi Telecom. Meanwhile, 20 branches recorded negative growth, with Zhejiang Telecom and Fujian Telecom among the worst performers.
In summary, provincial branches such as Anhui Telecom, Hainan Telecom, and Shanxi Telecom performed well in dual-line services, while Zhejiang Telecom lagged.
Industry experts note that dual-line services are a core component of enterprise network infrastructure. Once customers adopt these services, they tend to develop high dependency and stickiness, enabling operators to expand their enterprise market revenue and customer base. The narrowing decline in China Telecom's dual-line business signals improving market competitiveness.
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