In early 2025, according to informed sources, China Telecom set an operational target of striving for an 8% growth in digital industrial revenue for the year. Now, one year later, it remains unclear whether this goal was achieved. Reports indicate that by the end of 2025, the year-on-year growth in China Telecom's digital industrial business revenue was less than 1%. Clearly, the company did not meet its stated target last year.
Notably, throughout the year, 11 of China Telecom's provincial branches experienced declines in digital industrial revenue, accounting for one-third of the group. These include branches in Gansu, Jilin, Hebei, Inner Mongolia, and Jiangxi, among others. Particularly severe declines of over 15% year-on-year were seen in Gansu and Jilin. This indicates that the development of China Telecom's digital industrial business is currently facing significant challenges.
Previously, the digital industrial business served as a key growth engine for China Telecom's enterprise services revenue. Now, however, this engine appears to be struggling with growth obstacles. Industry experts point out that digital transformation initiatives currently face high costs and long return cycles. In the current economic climate, companies are prioritizing basic survival needs, which significantly impacts the demand growth for digital industrial services. Additionally, intense homogenized competition among the three major telecom operators, accompanied by frequent price wars, poses substantial challenges to the industry's development.