The United States is making trouble again.
This time, it is the 100 billion telecom giant – China United Network Communications Limited(600050) . On February 3, China United Network Communications Limited(600050) issued a statement saying that China United Network Communications Limited(600050) (America) Operation Co., Ltd. received an order from the Federal Communications Commission (FCC) to revoke the 214 license on February 2 local time. In this regard, China United Network Communications Limited(600050) said that the US FCC made the decision to revoke the 214 license of China United Network Communications Limited(600050) Americas without listing specific facts and due process, which will actively safeguard the legitimate rights and interests of the company and customers.
At the same time, the Ministry of industry and information technology also issued a statement on February 3, saying that the cancellation of China United Network Communications Limited(600050) 214 license by the US FCC without listing specific violations is a further generalization of national security and an unreasonable crackdown on Chinese enterprises by abusing state power, which has seriously damaged the US business environment and the legitimate rights and interests of Chinese enterprises and global consumers, including US users.
In recent years, the US crackdown on China’s three major operators seems to have never stopped. Once rejected the application of China Mobile to conduct business in the United States on the grounds of the so-called national security threat, and then successively revoked the 214 licenses of China Telecom Corporation Limited(601728) and China United Network Communications Limited(600050) ; NYSE also launched delisting procedures for China Mobile, China Telecom Corporation Limited(601728) and China United Network Communications Limited(600050) .
China United Network Communications Limited(600050) revoked 214 license
On the third day of the first lunar month (February 3), China United Network Communications Limited(600050) suddenly issued a statement and responded that China United Network Communications Limited(600050) (America) Operation Co., Ltd. received an order from the Federal Communications Commission (FCC) to revoke the 214 license on February 2 local time. China United Network Communications Limited(600050) pointed out in the statement that China United Network Communications Limited(600050) Americas has always operated in accordance with U.S. laws and regulations. In the past 20 years, it has provided customers with global comprehensive telecommunications services and solutions and become a trusted partner of customers.
China United Network Communications Limited(600050) said that the US FCC made the decision to revoke the 214 license of China United Network Communications Limited(600050) American company without listing specific facts and due process, China United Network Communications Limited(600050) American company will actively safeguard the legitimate rights and interests of the company and customers, and China United Network Communications Limited(600050) group company will pay close attention to the development of the situation.
The revocation of 214 license means that China United Network Communications Limited(600050) (America) operations limited must stop relevant services in the United States within 60 days.
At the same time, China’s Ministry of industry and information technology also attaches great importance to this matter. On February 3, the Ministry of industry and information technology issued a statement on the cancellation of China United Network Communications Limited(600050) 214 license by the United States, pointing out that we have noted that the Federal Communications Commission (FCC) of the United States decided to cancel China United Network Communications Limited(600050) America’s 214 license on the ground of national security on January 27 local time, which China firmly opposes. The US Federal Communications Commission (FCC) revoked its 214 license without listing specific violations, which is a further generalization of national security and an unreasonable crackdown on Chinese enterprises by abusing national power, seriously undermining the US business environment and the legitimate rights and interests of Chinese enterprises and global consumers, including US users. China firmly opposes this.
The Ministry of industry and information technology said that the United States should withdraw its unfair decision against our enterprises, stop the wrong practice of generalizing the concept of national security and politicizing economic issues, and create a fair, just and non discriminatory environment for Chinese enterprises to invest and develop in the United States. China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.
On January 27 this year, the Federal Communications Commission decided to revoke the 214 license of China United Network Communications Limited(600050) subsidiary by a 4-0 vote on the grounds of so-called “national security considerations”. The Federal Communications Commission believes that this action “protects the U.S. communication infrastructure from potential security threats”.
At that time, a spokesman for the Ministry of Commerce responded that relevant US departments generalized the concept of national security, abused national power and maliciously attacked Chinese telecom operators again in the absence of factual basis. The US move seriously deviates from the principle of marketization, damages the legitimate rights and interests of Chinese enterprises and consumers, including American users, and undermines the normal international economic and trade order. China is firmly opposed to this.
The Ministry of Commerce said that the United States should immediately stop unreasonable crackdown on Chinese enterprises and treat Chinese enterprises investing and operating in the United States fairly. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.
How big is the impact of ?
on the eve of the Spring Festival, China United Network Communications Limited(600050) (600050) listed on A-Shares fell sharply in a row. The cumulative decline in the week before the festival exceeded 7%, and the share price once fell to 3.7 yuan / share, creating a new low.
So, what is the impact of the revoked 214 license on China Unicom?
The so-called 214 License refers to the authorization of international telecommunications business issued by the FCC in accordance with Article 214 of the U.S. Communications Act (1934 edition and 1996 Amendment).
From the specific content of the 214 license, it mainly authorizes foreign telecom service providers to provide local and international mobile communication services for U.S. users based on the network infrastructure of major U.S. mobile operators in the United States.
The revocation of 214 license will affect its “mobile communication business” in the United States, while China United Network Communications Limited(600050) other businesses in the United States, including “leased line”, “Internet access” and “cloud service”, will not be affected according to the rules.
The 214 license revoked by the United States is not only China United Network Communications Limited(600050) . As early as October 26, 2021, the Federal Communications Commission (FCC) voted to revoke the 214 license of China Telecom Corporation Limited(601728) American subsidiary in the United States on the grounds of so-called national security considerations.
In November 2021, China Telecom Corporation Limited(601728) Americas filed a lawsuit in the U.S. Circuit Court of Appeals for the District of Columbia. Finally, the court rejected the Telecom’s request to suspend the withdrawal procedure.
After the 214 license was revoked, China Telecom Corporation Limited(601728) issued an announcement on the company’s official website, saying that the 214 license will only affect its mobile phone business (MVNO), and other “private operator business” and “non telecom services” will not be affected.
Therefore, after the 214 license is revoked, China United Network Communications Limited(600050) will stop the “mobile communication service” in the United States within 60 days.
Prior to this, China United Network Communications Limited(600050) has been deeply cultivated in the public communication field in the United States as a virtual operator for more than 20 years, and has accumulated some mobile communication users. The revocation of 214 license will have a certain impact.
However, relevant personnel of China United Network Communications Limited(600050) have said that the revenue of China United Network Communications Limited(600050) US business mainly comes from roaming and data center business, accounting for less than 1% of the global business revenue. In addition, some industry analysts said that the revocation of China United Network Communications Limited(600050) 214 license is the follow-up action of a series of attacks in the United States. Previously, the market had expected that it should have little impact on the actual business, because the main income of China Telecom Corporation Limited(601728) operators including China United Network Communications Limited(600050) does not come from the United States.
the three major operators have been hit one after another
In recent years, the US crackdown on China’s three major operators seems to have never stopped.
In 2019, the FCC rejected the application of China Mobile to conduct business in the United States on the grounds of “unwarranted” national security threat, and subsequently revoked the 214 licenses of China Telecom Corporation Limited(601728) and China United Network Communications Limited(600050) .
On December 31, 2020, due to the executive order signed by former US President Donald Trump during his term of office, the NYSE announced that it would start the delisting procedures of China Mobile, China Telecom Corporation Limited(601728) and China United Network Communications Limited(600050) . After that, the NYSE changed its mouth twice, but the NYSE finally maintained its original decision. On January 11, 2021, the NYSE officially suspended the trading of American Depositary Shares of three China Telecom Corporation Limited(601728) enterprises.
After the delisting of NYSE, China Telecom Corporation Limited(601728) officially landed on the main board of A-Shares on August 20, 2021. It took only more than five months from the official announcement of A-Shares back to the successful listing; China Mobile landed in A-Shares on January 5 this year, China Telecom Corporation Limited(601728) , China Mobile and China United Network Communications Limited(600050) which had already landed in A-Shares for many years “met”, and the three major operators in China officially formed the listing structure of a + H.
From the financial data, among the three major operators in China, China Mobile is far ahead in terms of revenue scale and profitability. In the first three quarters of 2021, China Mobile achieved a revenue of 648.6 billion yuan, twice the revenue scale of China Telecom Corporation Limited(601728) 326.5 billion yuan; The net profit attributable to the parent company was 87 billion yuan, nearly China Telecom Corporation Limited(601728) 23.3 billion yuan, four times the profit level. At the same time, China United Network Communications Limited(600050) the revenue scale in the first three quarters of 2021 was 244.5 billion yuan, and the net profit attributable to the parent company was 5.7 billion yuan.
in terms of the total market value, China Mobile is also second to none among the three operators. As of January 28, 2022, China Mobile A shares closed at 57.58 yuan / share, with a total market value of 1.23 trillion yuan, while the total market values of China Telecom Corporation Limited(601728) and China United Network Communications Limited(600050) were 380.7 billion yuan and 115 billion yuan respectively.
