CICC: 2020 5G investment budget adequately pays attention to the lag risk of 5G mobile phone sales

CICC's industry research report shows that according to the 2020 Capital Expenditure Plan announced by the three major telecommunications operators and Tower Corporation, China Telecom ’s capital expenditures will increase by 11% to 361.9 billion yuan in 2020; of which the 5 major carriers ’5G-related capital expenditures total 180.3 billion, an increase of 338%.

CICC believes that the 5G budget is sufficient in 2020, reaching a total of 146.7 billion yuan. The first rebound in fixed-line spending in three years confirms our positive view of the fiber industry. In terms of mobile phones, we have noticed that operators have adopted package-based plans to decouple from mobile phones. The 5G user-defined method may cause the risk that the sales of 5G mobile phones lags behind the growth of the number of 5G users. It is worth noting.