19
China Communications Services Corporation Limited Annual Report 2015
BUSINESS OVERVIEW
The Group signed the cooperation
agreement with the Tower Company
The Group undertook tower projects
In 2015, the Group continued to follow the strategy to allocate resources adaptively in developing the three customer markets
and firmly captured the opportunity of increasing investment by domestic telecommunications operators, which became the
major contributor to our revenue growth. In 2015, revenue from domestic telecommunications operator customers (including
China Tower Corporation Limited (“The Tower Company”)) amounted to RMB54,793 million, representing a year-on-year
increase of 16.3% and accounted for 67.7% of the total revenues. Revenue from domestic non-operator customers amounted
to RMB22,942 million, representing an increase of 3.0% and accounted for 28.3% of the total revenues. Revenue from overseas
customers amounted to RMB3,225 million, representing a decrease of 14.9% and accounted for 4.0% of the total revenues.
In 2015, the Group focused on the development of both “CAPEX and OPEX-driven” businesses
1
. Leveraged on the opportunities
of LTE FDD license issuance, upgrading and capacity ramp-up of telecommunications backbone network and fiber optic
broadband, the Group intensified its efforts in expanding the domestic telecommunications operator market. Of which, revenue
from China Telecom amounted to RMB39,130 million, representing a year-on-year growth of 22.5% and accounted for 48.3%
of the total revenues. China Telecom was the largest contributor to the incremental revenue. During the year, supported by the
enlarged market share, proactive expansion in OPEX-driven business of the domestic telecommunications operators and the
revenue contributions from the Tower Company, we overcame the impact from the decline of network construction investment
of respective operator customer. Aggregate revenues from operator customers other than China Telecom maintained stable
growth and amounted to RMB15,663 million, representing a year-on-year growth of 3.3% and accounted for 19.4% of the total
revenues. The Tower Company became an important new customer and made obvious contribution to the revenue growth of
the Group. The Group has strengthened its market expansion in the domestic telecommunications operator market in northern
China and established Inner Mongolia Autonomous Region Telecommunications Services Company Limited, striving for
enhancement in the revenue contribution from the northern region. In 2015, the Group made remarkable progress in the
development of OPEX-driven business of domestic telecommunications operators, of which growth of maintenance business
maintained approximately 18% for two consecutive years, showing a rapid and steady growth momentum.
In 2015, the Group proactively expanded the domestic non-operator customers market and achieved satisfactory results. Sales
and marketing mechanism was initially established and overall revenue growth from such market remained stable. Among that,
development of key businesses such as construction of informatization projects and data centres achieved satisfactory growth
with further optimization in revenue structure, laying a solid foundation for subsequent development. The Group strengthened
The Group obtained the award of excellent
partner from the Tower Company
1
CAPEX and OPEX refer to the capital expenditure and operating expenditure of domestic telecommunications operators, respectively.
