As a crucial revenue stream for China Telecom's enterprise business, the Tianyi Cloud service has always been of great importance. However, by the end of February this year, five provincial branches under the group experienced a severe decline in cloud service revenue, with some cases being quite unexpected.

It is reported that the five provincial branches with significant drops in Tianyi Cloud revenue during the first two months include Tibet Telecom, Jilin Telecom, Tianjin Telecom, along with a major central province branch and a northwestern province branch. Tibet Telecom, Jilin Telecom, and Tianjin Telecom are among the smallest provincial branches under China Telecom, so slower growth in their cloud business is understandable. However, the decline in the central and northwestern province branches is surprising, as given their scale of development, their Tianyi Cloud business should not have seen such a sharp downturn.

An industry expert noted that the growth rate of cloud services for operators has gradually slowed. After years of rapid expansion, the revenue base has significantly increased, making it challenging to sustain high-speed growth. Additionally, demand from enterprise clients has become increasingly saturated, and fierce competition from internet cloud providers has placed operators' cloud businesses in a difficult position.

Nevertheless, China Telecom's overall cloud business has not been significantly impacted by the underperformance of these five branches, maintaining an average positive growth rate.