Price war whittles profit away from Chinese mobile operators

14 Mar 2003

The ongoing intense price war between Chinese cellcos China Mobile (Hong Kong) and China Unicom is expected to impact badly on their respective bottom lines when the two report earnings for 2002 within the next few weeks. Both operators spent much of last year locked in a war for market share, sacrificing profits by discounting handsets, carrying out expensive advertising campaigns and running other promotions to build business in the fast growing market.