Unicom sees 19% fall in profits

26 Aug 2005

Chinese cellular operator China Unicom has reported a 19% drop in first-half profits to CNY2.33 billion (USD288 million). The firm says the poor result is due to increasing competition and losses at its CDMA business. Unicom operates both GSM and CDMA networks and this has led to speculation that the company is stretching itself too far attempting to run two separate systems. Unicom’s larger rival in the Chinese cellular market, GSM operator China Mobile, reported net profits of CNY24 billion in the first six months of 2005, up 28% year-on-year. China Mobile had 223.78 million subscribers at the end of June, while Unicom claimed 120.53 million.

China, China Unicom