China Unicom establishes a security subsidiary as part of intensified cybersecurity strategy
New Era
On January 26, 2024, China Unicom (Guangdong) Network Information Security Technology Co., Ltd. was founded with Wang Qihong as the legal representative and a registered capital of 1 billion yuan.
China Unicom establishes an independent network and information security company, signaling an elevated status of cybersecurity within the group. In 2023, the annual revenue for Unicom's comprehensive security experienced rapid growth, accelerating the scale replication of the "platform + product + service" model. With over 100 products available on the security cloud market, the company effectively meets the security needs of the digital economy. The annual comprehensive security revenue for 2023 witnessed a staggering YoY increase of 190%.
In recent years, telecom operators have demonstrated a gradual increase in strategic investments in cybersecurity.
In 2020, China Telecom Cloud Network Security Technology Co., Ltd. (YunDi) was established, marking its transition from a branch to a subsidiary. China Mobile, too, completed a strategic acquisition of VenusTech in 2023.
The increased strategic investments in cybersecurity by the three major operators raise questions about potential impacts on the industry structure and whether the competitive landscape will undergo significant changes.