Earnings Labs

VNET Group, Inc. (VNET)

Q2 2015 Earnings Call· Thu, Aug 27, 2015

$8.51

-3.79%

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Transcript

Operator

Operator

Good morning, ladies and gentlemen. Thank you everyone and welcome to 21Vianet Group's Second Quarter 2015 Earnings Conference Call. At this time, all participants are in a listen-only mode. I would also like to mention that due to the pending "going-private" transaction there will be no Q&A session at the end of the call. Before we begin, I will read the Safe Harbor statement. This call may contain forward-looking statements made pursuant to the Safe Harbor provisions for the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties and other factors not under the Company's control, which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements. All forward-looking statements are expressly qualified in their entirety by the cautionary statements, risk factors and details of the Company's filings with the SEC. 21Vianet undertakes no duty to revise or update any forward-looking statements for selected events or circumstances after the date of this conference call. With us today is Mr. Terry Wang, 21Vianet’s Chief Financial Officer. At this time, I would now like to turn the conference call over to Mr. Wang.

Terry Wang

Analyst

Good morning and thank you for joining us today. And first of all, I am very excited to join the Company's management team as Chief Financial Officer and look forward to working closely with everyone in the organization during the next phase of 21Vianet’s growth. Similar to prior quarters, before going over operating details, I would like to first spend a few minutes to discuss a couple of market dynamics that we are seeing in the Internet infrastructure segment we serve. First, new broadband trial licenses; as we discussed last quarter, the central government has set a goal to issue 100 new broadband trial licenses targeting RMB10 billion total investments and expand the numbers of total trial cities to 30 by year end of 2015. During the quarter, we have seen some of those new licenses already being issued not only to existing broadband service providers, but also to emerging broadband high-speed. Meanwhile, some of our domestic peers equipped with cheaper capital resources continue to be aggressive in promotional activities, especially in the network related businesses. As this market is further deregulated, we believe more broadband IP and the capital will continue to enter this market introducing incremental competition in last-mile broadband access market. Second, improving network efficiencies. From a network design perspective, we’re seeing the number of national network access points or NAPs continues increase from original three with traffic in the process of gradually working to some other new NAPs, although it will take time to develop China’s massive Internet traffic even longer to make a meaningful improvement in overall network efficiencies. We believe that we are moving in a right direction with the national broadband plan and the continued push by the government to improve China’s network quality. We are seeing the average internet transmission speeds continues…

Operator

Operator

Thank you very much sir. Ladies and gentlemen, that does conclude the conference for today. Thank you for your participation. You may all disconnect.