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Telecom Investment to Soar upon 3G Licenses
Updated:2008/11/21 14:35
The Ministry of Industry and Information Technology yesterday required telecom carriers to issue 3G licenses to TD, WCDMA, and CDMA 2000 telecom networks operators within this year. As the Chinese government lately came up with a big economic stimulus plan, the ministry just hoped to issue the 3G licenses in advance to spur telecom infrastructure construction. Chang Xiaobing, chairman of China Unicom, says that the company will invest as much as CNY 200 billion in fixed assets in the coming two or three years after it gets the 3G license. China Mobile says that it would pour CNY 30 billion in building up TD-SCDMA networks. And China Telecom will spend CNY 80 billion to set up CDMA 2000 networks. As a result of the substantial reduction of fixed line telephone subscribers, China Telecom's net profits were down 8.2% to CNY 12.63 billion in the first half of 2008. Wang Xiaochu, president of the telecom carrier, says that China Telecom is likely to be the first to launch 3G services. And it will invest as much as CNY 80 billion in 3G in the coming three years. The company saw a turnover of 600,000 fixed line telephone subscribers this July, an increase of 3.4% from the previous month, reducing the total number to 214.29 million. The number of its broadband Internet users soared 810,000 in July, pushing the total number to 40.76 million. However, the growth rate slowed down 9% in comparison with June. The telecom carrier attributed the reduction of fixed line telephone users mainly to the proliferation of cell phones as mobile telecom carriers pressed down endlessly their service charges. Latest survey of Credit Lyonnais Securities indicates that the fast growth of the broadband Internet access service of China Telecom is likely to make up the losses made by fixed line telephone sector. However, China Telecom will be facing great pressure in CDMA expansion. And its mobile telecom service will have to be confronted with pricing wars. Credit Lyonnais Securities believes that China Telecom will see sustainable growth in the first half of 2008, with net profits increasing 4.5% to CNY 14.09 billion. Another principal risk facing China Telecom is the decline of average revenue per user of its broadband service.
Source:SinoCast ,3G handset sales to top 5 million units in 2H09 (2009-7-3) ,AT&T breaks sales records with iPhone 3GS launch (2009-7-3) ,Belgian Advanced Broadband Network Wins 2009 Innovations Award from Global Telecoms Business (2009-7-2) ,China Unicom to release 3G numbers in batches in 4Q (2009-7-2) ,France Telecom offers USD2.5bn in notes (2009-7-1) ,3G licensing likely to be delayed until next year (2009-7-1) ,Sprint: We'll Beat AT&T to 3G Femto (2009-7-1) ,LG plans to ship more 3G phones than Samsung (2009-7-1) ,Nokia Launches 11 3G-Based Phones in China (2009-7-1) ,China Unicom: 3G coverage of 100 cities (2009-7-1) ,LG bags rights to sell 3G mobile phones in China (2009-7-1) ,Huawei Completes ASON Interoperability Tests with France Telecom and China Telecom (2009-7-1) ,China Mobile Swaps Out Datang 3G Kit (2009-7-1) ,Nokia unveils 11 new handsets for emerging 3G segment (2009-6-26) ,TeliaSonera to Expand 3G Network in the 900Mhz Band (2009-6-26) ,China Telecom in initial talks with RIM on introduction of Blackberry (2009-6-25) ,China Adds 8M Mobile Subs in May (2009-6-25) ,China Telecom: In Preliminary Contact With RIM On Blackberry (2009-6-25) ,China Telecom May Sell BlackBerry In China (2009-6-24) ,Etisalat upgrades 3G download speeds to 14.4Mbps (2009-6-24) |
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