According to the CICC Research Report, the 2024 financial reports of the three major telecom operators showed that the total capital expenditure of the three companies in 2024 was 318.9 billion yuan, down 9.7% from the previous year, and the decline was 4.5% higher than the early 2024 guideline. Looking ahead to 2025, in terms of total volume, the total capital expenditure guidelines of the three operators fell 9.1% year on year to 288.9 billion yuan, and the scale of investment continued to narrow; from a structural perspective, the investment focus of operators was further skewed towards computing power networks. China Mobile/Telecom/Unicom's computing power investment increased 0.5%/22%/28% year on year, respectively. Traditional mobile & fixed network construction will enter a period of high-quality and steady development focusing on investment energy efficiency. We believe that future 5G-A, 400G OTN and 50G PON upgrades are expected to drive incremental investment in wireless/wired networks.

According to the CICC Research Report, the 2024 financial reports of the three major telecom operators showed that the total capital expenditure of the three companies in 2024 was 318.9 billion yuan, down 9.7% from the previous year, and the decline was 4.5% higher than the early 2024 guideline. Looking ahead to 2025, in terms of total volume, the total capital expenditure guidelines of the three operators fell 9.1% year on year to 288.9 billion yuan, and the scale of investment continues to narrow; from a structural perspective, the investment focus of operators is further skewed towards computing power networks. China Mobile/Telecom/Unicom's computing power investment increased by 0.5%/22%/28% year on year, respectively. Traditional mobile & fixed network construction will enter a period of high-quality and steady development focusing on investment energy efficiency. We believe that future 5G-A, 400G OTN and 50G PON upgrades are expected to drive incremental investment in wireless/wired networks.