China Mobile 80 billion government business structure adjustment

On July 27th, according to the daily report of the economic news, China Mobile’s split of China Mobile’s government and enterprise branch, which has been brewing for more than half a year, has finally landed.

Insiders revealed that, in specific aspects, after the spin-off, China Mobile’s government business in the country will present a “one total two horizontal and three vertical” pattern, one for the group: the government and enterprise division; the second is including: China Mobile Internet of Things Co., Ltd. Suzhou R&D Center (China Mobile Suzhou Software Technology Co., Ltd.); three verticals include: China Mobile Shanghai Industrial Research Institute, China Mobile Chengdu Industrial Research Institute, and China Mobile Xiong'an Industrial Research Institute.

“Two Heng” focuses on 5G, IOT, and cloud infrastructure technologies. The “Three Verticals” Shanghai Research Institute is responsible for 5G industry applications such as industry, transportation and finance. The Chengdu Research Institute is responsible for 5G industry applications such as education, medical care, and agriculture. The Xiong'an Institute is responsible for 5G in the fields of party and government, smart cities, etc. Industry application.

After adjustment, China Mobile's government and enterprise market will form a “one total” to strengthen business synergy, “two horizontal” construction platform support, and “three verticals” to be responsible for the deep chimeric industry application pattern.

For this China Mobile split government and enterprise branch, a Chinese mobile insider wrote in the circle of friends that “the group of government and enterprise companies and local provincial government enterprises, the situation of profit for nearly ten years will end.”

China Mobile's government and enterprise branch formerly known as the headquarters group customer department, was established in August 2012 and is a specialized branch of China Mobile's subordinate operating group customer market. According to China Mobile's 2018 financial report, China Mobile's government and enterprise market revenue was 72.555 billion yuan, accounting for 10.8% of China Mobile's communications service revenue.

However, China Mobile's government and enterprise branch has not had completely independent financial and personnel rights. China Mobile's major provincial companies also have their own government and enterprise departments, which have double-headed leadership, mutual rushing projects, slow processes, and high management costs.

After adjustment, China Mobile's government and enterprise branch re-established as a department of China Mobile Group, which will be more conducive to the unified and efficient management of the national government and enterprise market.

As the demographic dividend is disappearing, the 2C market growth is slowing down. Facing the era of 5G cloud management and the era of all things, the 2B market is undoubtedly the next key growth point. Global operators are exploring intelligent transportation and intelligent manufacturing in the 5G era. In the field of smart cities, the B2B/2X business model in the 5G era will be fully transformed.

The restructuring of China Mobile's corporate affairs organization is of great significance, and it is also the first internal organizational adjustment after China Mobile's chairman Yang Jie took office.