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China Telecom Digital City Company was established, and the road to digital service layout opened


01 In the national “14th Five-Year Plan” plan, work arrangements for building a new picture of a better digital life are proposed. The plan points out: to promote the digitization of various scenarios such as shopping and consumption, home life, tourism and leisure, and transportation, to create a new digital life of wisdom sharing and harmony and co-governance. Promote the construction of smart communities, relying on community digital platforms and offline community service agencies to build a convenient and beneficial smart service circle, and provide online and offline integrated community life services, community governance and public services, smart communities and other services. Enrich the digital life experience and develop the digital home. Strengthen the education and training of digital skills for all, popularize and improve citizens’ digital literacy. Speed ​​up the construction of information barriers and help the elderly and the disabled to share their digital lives. Digital China, digital society, digital government, digital governance and other “digital +” combination concepts emerge one after another, and digital transformation has become the hottest topic. Digital transformation has also become a driving force for the development of various industries, or internally improve the level of digital management, or provide digital transformation solutions for other industries and enterprises, or provide the public with a variety of digital application services. All in all, the “digital” dividend trend is coming. 02 Telecom operators, their most basic network pipeline services, have had a natural relationship with numbers since their birth. It can be said that the basic services of telecom operators are naturally digital. But digitization is not a natural service of telecom operators. Therefore, for telecom operators, under the trend of digital transformation, a new round of development has two basic directions, or two basic tasks. One is to continue to provide smarter pipeline services for thousands of industries based on the ability in basic network pipelines. In this regard, under the continuous policy pressure of “speeding up and reducing fees”, there is limited room for growth. The other is digital service capabilities on top of basic network pipelines, such as solutions based on continuous operation services, rather than a single network engineering construction. Another example is the application service field currently occupied by major Internet companies. In the latter direction, years of innovation and exploration by telecom operators are still unsuccessful in general at present, and in some places, it can even be said to be a failure for various reasons. Some failures, like other Internet applications, can only be found in the past history. The new innovations have not yet been effectively established, including the high hopes for cloud computing and other related industry solutions. In this situation, especially when entering the “14th Five-Year Plan” phase, it has a certain degree of social responsibility (political mission 0 and the digital construction work of economic benefits). It is also on the agenda. For the layout of digital empowerment, In this regard, China Telecom’s layout is gradually unfolding. 03 According to the information from Tianyan, China Telecom Digital City Technology Co., Ltd. (hereinafter referred to as “China Telecom Digital City Company”) has completed the industrial and commercial registration on June 18, 2021. The company has a registered capital of RMB 900 million and the legal representative is Zhao Hongxun. The industrial and commercial registration information shows that China Telecom Digital City Company is registered in Xiong’an New District and its business scope is: 1. General projects: Internet of things application services; Internet of things technical services; technical services, technology development, technical consulting, technical exchanges, technology transfer, technology promotion: Internet of things technology research and development: information system integration services; Internet data services; big data services ; Computer system services; Internet security services; computer hardware and software and auxiliary equipment wholesale; computer software, hardware and auxiliary equipment retail; computer and communication equipment leasing; corporate management consulting; financial consulting; market research (excluding foreign-related investigations); marketing planning ; Advertisement production; conference and exhibition services; non-residential real estate leasing; housing leasing; property management (except for items that must be approved according to law, carry out business activities independently according to the law). Licensed items: the first type of value-added telecommunications services; the second type of value-added telecommunications services; call centers (items that are subject to approval in accordance with the law, can only be carried out after the approval of the relevant departments, and the specific business projects of the relevant departments shall be subject to the approval documents or licenses of the relevant departments. 04 From the perspective of China Telecom Digital City’s business scope, IoT-related services, including application services, technical services, and technology research and development, are the highlight. At the same time, high hopes are placed on data services. In terms of value-added telecommunications services, certain arrangements will also be made in accordance with the license. In accordance with the practices of base companies or professional companies in the past, in the digital age, digital city companies will also deeply integrate some related businesses that were scattered everywhere in the past, and adjust their business layout in an intensive manner. Therefore, taking the establishment of China Telecom Digital City Company as an opportunity, in the digital age, China Telecom will carry out a round of intensive layout adjustments in the digital field in accordance with the needs of strategic upgrading in the digital wave. The establishment of China Telecom Digital City Company is just the beginning. There may be other actions in the follow-up. In this case, several other telecom operators are likely to start similar business layouts. In the digital age, a new round of integration and layout can effectively achieve resource integration, business integration, and team integration, so as to create a new growth pole for development. At the level of practical operations, there is still a lot of work to be done, and some work, based on historical inertia, may still be tricky. Whether we can simplify the complex and break the game quickly, let us wait and see, or in other words, stay tuned!