China Telecom
Strengths
• Large subscriber base
At the end of FY2016, the company had 123.1 million wireline broadband subscribers, an increase of 8.9% over the previous year.
Fibre-to-the-Home (FTTH) subscribers increased by 49.3% to 106 million at the end of FY2016 over FY2015.
Mobile subscribers increased by 8.6% to reach 215 million during the review year, accounting for 16.2% market share.
4G terminal users increased by 108.5% to 121.9 million at the end of FY2016 compared to 58.5 million at the end of previous year, accounting for a market share of 16%.
e-Surfing HD subscribers reached 61.3 million at the end of FY2016, an annual growth of 51.9%.
The average monthly active users for Best Pay increased by 361.8% to reach16.2 million at the end of FY2016.
• Superior technology/products
Advanced network systems
E-surfing cloud 3.0 for cloud storage, cloud hosting and private cloud
Dual-high alert program to send alerts to users for detecting high data traffic, and high tariffs
Scenario-based data services to support problematic service scenarios
• Strong R&D capabilities
In FY2016, it incurred R&D expense of CNY825 million which was up 4% from FY2015.
It had 1,992 employees in R&D facilities at the end of 2016
• Strong performance in Internet category
Revenue increased by 18.9% to reach CNY150,405 million in FY2016, compared to CNY126,546 million in FY2015
Weaknesses
• Liquidity position
Current ratio of 0.2 is significantly lower than competitors (Chunghwa Telecom Co., Ltd. (1.3), and PCCW Limited (1.4)), which indicates weaker financial position and inability in meeting short-term obligations than its peers.
Company is not in a great position if it needs to fund any potential opportunities arising in the

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