Broker: OCBC Investment Research
Date: 24 September 2024
Integrated Development of Network, Cloud, and DICT Services
China Mobile (CM) has advanced the integrated development of its network, cloud, and DICT (Data, Information, and Communications Technology) services. The company continues to enhance its innovative “AI+DICT” capabilities, focusing on using AI to support various industries. China Mobile’s Jiutian AI foundation includes a 10,000-card intelligent computing cluster and 100 billion-parameter multimodal large models. The company has built an ecosystem that integrates hundreds of key elements, continuously improving its large model spectrum and expanding its AI capabilities across different sectors.
Expansion of Industry-Specific Large Models
By combining in-house development with ecosystem collaboration, China Mobile has deployed high-performance, industry-specific large models in 40 subsectors, including network, customer service, healthcare, public administration, industry, transportation, and finance. In the first half of 2024, China Mobile released 17 self-developed Jiutian industry-specific large models, empowering nearly 1,000 industry applications with 450 AI capabilities. The Jiutian foundation large model became the first AI model developed by a Chinese state-owned enterprise (SOE) to receive dual filings from the Chinese government for generative AI services and deep synthesis service algorithms. It also received an A-grade security certification from the China Software Testing Centre.
Expansion of the Jiutian Ecosystem Platform
China Mobile has actively expanded its Jiutian ecosystem platform by including more industry players. The company established large model training, evaluation, and industrial innovation bases to offer one-stop services like model training, inference, and AI-native application incubation. The expansion of the Jiutian platform positions China Mobile as a leader in driving AI adoption across various industries.
Growth in Internet of Vehicles and 5G+ Beidou Positioning
In the “To Vehicles” market, China Mobile achieved a net increase of 7.29 million factory-installed Internet of Vehicles (IoV) connections, bringing the total to 57.91 million. Additionally, the usage of 5G+ Beidou high-precision positioning reached 1.7 trillion instances. China Mobile has enhanced its “people-car-home” service offerings and formed channel partnerships with 10 top-tier automakers. The company is also involved in pilot projects for “vehicle-road-cloud integration” in various cities, further advancing its IoV services.
Expanding Digital Government and Corporate Markets
In the “To G” market, China Mobile has deepened its market expansion by accumulating digital government capabilities and releasing the Jiutian massive-computing large model v3.0 for public administration. The company played a key role in building and operating digital cities at the provincial and municipal levels, delivering benchmark projects. By the first half of 2024, the accumulated contract value for digital government services exceeded CNY12.6 billion, marking a year-on-year increase of 13.8%.
In the corporate market, China Mobile developed a “terminal, network, cloud, data” product system. The company has created 15.80 million corporate packages for SMEs, achieving a net increase of 10.75 million.
Development of AI Talent and Infrastructure
China Mobile continues to enhance its “AI+” capabilities, assembling a team of top AI talent and establishing the Jiutian AI Research Institute, which includes a core team of 2,000 members. The company has also built new AI infrastructure, with the hyper-scale Hohhot Intelligent Computing Centre now operational and construction of the Harbin Intelligent Computing Centre underway. These facilities will support the company’s growing AI needs and enhance its ability to deliver cutting-edge services.
Leadership in 5G and Digital Infrastructure
China Mobile has maintained its leadership in 5G development, continuing to optimize its smart digital infrastructure. As of June 2024, the company had deployed more than 2.29 million 5G base stations, including 705,000 700MHz 5G base stations. The company is leading the deployment of 5G-A technology, focusing on enhancing capabilities in areas like RedCap, 3CC (3 Component Carriers), and integrated sensing and communications. The commercial deployment of 5G-A has already been implemented in over 280 cities, with plans to expand to more than 300 cities by the end of 2024.
Conclusion
China Mobile’s advancements in AI+DICT services, along with its focus on 5G technology and intelligent computing, position the company as a leader in driving digital transformation across various sectors. Its continuous innovation in AI-driven services, expansion into the IoV and digital government markets, and commitment to building cutting-edge infrastructure will support China Mobile’s growth and help it maintain its competitive edge in the evolving digital landscape.
