China Galaxy Securities: Telecom Operators Introduce Token Plans, Opening up New Growth Space for AI.

China Galaxy Securities released a research report stating that operators are shifting from managing traffic to managing Token value, and they have a unique position in the high barriers AI market and inclusive AI service market with their rich computing power layout, nationwide network coverage, massive user base, and government and enterprise channels. They are expected to open up the second growth curve of the AI era, combining stable dividends with technological resilience. Key recommendations include: China Mobile Limited (600941.SH, 00941), China Telecom Corporation (601728.SH, 00728), and China United Network Communications (600050.SH, 00762). The main points of China Galaxy Securities are as follows: Shanghai Telecom launches Token tariff packages to open up new revenue streams China Telecom Corporation launched a nationwide Token package on May 17, 2026, with prices starting from 9.9 yuan/month for individuals and families = 10 million Tokens, and starting from 39.9 yuan/month for developers and small and medium enterprises; while also implementing a 17.4 billion Token factory group procurement, building elements generation, computing power aggregation, model adaptation, and intelligent scheduling base. With this, all three major operators have launched Token packages, making AI services standardized and retail-friendly like data packages, with Tokens becoming the standard measurement unit of the AI era. The daily Token usage in China has increased from 100 billion in early 2024 to 1.4 trillion in March 2026, a growth of over a thousand times in two years. Enhancing existing computing power and AIDC utilization, improving the logic of heavy asset returns The most direct benefit of introducing Token packages for operators is to transform cloud, computing power, AIDC, and network capabilities into retail, subscription-based, and sustainable AI service revenue units, thereby restructuring revenue streams, improving asset utilization, and enhancing ARPU. Previously, operators mainly monetized their cloud computing capabilities through government and enterprise projects, IDC rentals, etc., targeting the ToB end; Token packages now reach individuals, developers, and small and medium enterprises with a low threshold, reducing the trial threshold for the masses significantly. The same set of AIDC and computing power resources, if able to increase usage frequency and expand into more scenarios through Token packages, will significantly improve the return on investment. With the launch of large model Coding Plan Token packages on mobile cloud, daily Token usage has increased by 274% compared to December 2025, and active customer numbers have increased by 704% by April of this year. Massive users with low customer acquisition costs + cloud-edge integration infrastructure make operators the strongest distribution channel Operators have the advantage of having 1.827 billion individual mobile users and around 73 million government and enterprise users, securing a massive Token consumption entry point. Their advantages in nationwide delivery, billing, government enterprise services, and cloud-network collaboration are very clear. From minutes to GBs of data, to broadband and bundle packages, operators excel in standardized package design, bill settlement, and large-scale operations. Token packages essentially represent the migration of their historical capabilities into the AI era. Furthermore, operators have nationwide backbone networks, data centers, edge nodes, dedicated lines, and metropolitan area network resources, enabling cloud-network-edge coordination and giving them latency advantages and secure barriers, allowing better control over model access and Token pricing rights. Risk warning: Risks of AIGC application promotion falling short of expectations; risks of capital expenditures and investment returns falling short of expectations; risks of intensified competition in the computing power industry, etc.