Tuesday, April 01, 2008

China Telecom books lower Q4 profit on decreasing users

China Telecom Corp, the nation's biggest fixed-line phone operator, booked a 1.7% decline in fourth-quarter profit on the loss of subscribers.

Net profit in the period decreased slightly to RMB 5.26 billion (US$750 million) from RMB 5.35 billion a year earlier, while sales expanded a bit to RMB 44.1 billion from RMB 42.9 billion, the company said.

Last year, wireless services subscriptions in China rose by 86.2 million, while that of fixed lines decreased by 2.3 million as people switched to more convenient mobile and internet services.

China Telecom Corp together with smaller rival China Netcom Group Corp have both applied for licenses to provide third-generation mobile services.

In line with the planned revamp of its telecom industry, the two fixed-line companies may be allocated wireless assets to improve competition.

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