Costs and subsidies hurt telco
By Zhu Shenshen |
October 30, 2012, Tuesday
|
Print Edition
Print Edition
CHINA Telecom Corp's third quarter net profit fell 7.3 percent because it has to incur rising costs to compete with bigger rivals and offer subsidies for Apple Inc's iPhone when it expanded into the mobile sector.
Net profit for the country's biggest fixed-line carrier declined to 3.75 billion yuan (US$595 million) from 4.05 billion yuan a year ago.
Its revenue in the third quarter jumped 16 percent to 72 billion yuan. In the first nine months, China Telecom's net profit fell 8 percent to 12.5 billion yuan, while revenue grew 15 percent to 210 billion yuan.
The "intensifying mobile competition" (with added cost) is one of the major risks facing China Telecom, Morgan Stanley said in a statement yesterday.
In the third quarter, the telco's mobile unit attracted an extra 8.44 million users, giving it 152.6 million 3G users.
Net profit for the country's biggest fixed-line carrier declined to 3.75 billion yuan (US$595 million) from 4.05 billion yuan a year ago.
Its revenue in the third quarter jumped 16 percent to 72 billion yuan. In the first nine months, China Telecom's net profit fell 8 percent to 12.5 billion yuan, while revenue grew 15 percent to 210 billion yuan.
The "intensifying mobile competition" (with added cost) is one of the major risks facing China Telecom, Morgan Stanley said in a statement yesterday.
In the third quarter, the telco's mobile unit attracted an extra 8.44 million users, giving it 152.6 million 3G users.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
