To achieve speed rise and fee cut for the network, the Chinese government decided to cancel long distance & roaming charges for mobile communication, Wang Xiaochu, chairman of the board and CEO of China Unicom said at an annual results briefing held on March 15.
It is estimated that canceling roaming charges will affect the corporation's revenue of 1.58 billion renminbi quarterly and raise the use rate among the consumers for which the profit change can't be calculated.
Wang Xiaochu said China Unicom is expected to decline the capital expenditure to CNY 45 billion for the year 2017, which reached CNY 72.1 billion last year, and this will help improve its profitability.
China Unicom announced the 2016 financial report on the same day, posting revenue of CNY 240.98 billion with a 2.4 percent increase and net profit of CNY 630 million dropping 94.1 percent year-over-year.
Rome is not built in a day, and China Unicom has gradually improved the cash flow and profit and wants to keep it.
Mr. Wang noted that China Unicom has got through the worst and things will get better if there's no macroeconomic adjustment.