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/ China Communications Services Corporation Limited /
Business Overview
2011
2010
(In RMB million except percentages)
Revenue
Percentage
to total
revenue
Revenue
Percentage
to total
revenue
Change
over
2010
Domestic telecommunications
operator customers
34,151
63.8%
29,464
64.9% 15.9%
Of which: China Telecom
22,956
42.9%
19,925
43.9% 15.2%
China Mobile and
China Unicom
11,195
20.9%
9,539
21.0% 17.4%
Domestic non-operator customers
15,885
29.7%
13,728
30.2% 15.7%
Overseas customers
3,471
6.5%
2,225
4.9% 56.0%
Total
53,507
100.0%
45,417
100.0% 17.8%
In 2011, benefitted from the “Broadband China” strategy, the accelerated development of mobile Internet and the
proliferation of smart phones, the domestic telecommunications operators devoted more resources to the expansion
and upgrade of fiber optic broadband and mobile network, and the capital expenditure remained stable with a
mild uptrend. As such, by leveraging the advantages in communication services industry, the Group continued to
improve its marketing initiatives, services quality and the response time to market. The Group realized rapid growth
in construction, supervision, network maintenance, distribution of telecommunications services and products and
IT applications businesses. Revenues from the domestic telecommunications operators increased rapidly and our
position in the industry was further reinforced.
It is particularly noteworthy that the project which the Group participated in – “China Telecom Prime IP Backbone
Network (CN2) Construction Project” was awarded “National Prime-Quality Project Gold Award”, which was the first
national gold award won by the communications industry in China. Such recognition fully demonstrated the Group’s
leading position in the communications construction industry.
Based on the experiences in serving customers over the past years, the Group believes that the capital expenditure
by the domestic telecommunications operators will remain relatively stable in the coming years given the continuing
growth of their customer base, network scale as well as the continued introduction of new technologies and
new services. The Group is also endeavored to explore the market in Northern China and establishes Shandong
Communications Service Company Limited. The Group believes that revenue from domestic telecommunications
operators will maintain a steady growth in future.
“Safe City” Projects