China Telecom has booked net profits of CNY4.722 billion (USD758.45 million) for the three months to end March 2013, up 10% year-on-year on the back of strong subscriber growth and mobile handset sales. Operating revenues were CNY77.818 billion for the period under review, of which CNY9.234 billion was derived from mobile handset sales, compared to CNY67.932 billion and CNY5.011 billion a year earlier. Operating expenses grew by 13.7% to CNY70.267 billion, despite decreases in costs relating to network operations and personnel. In terms of subscribers, China Telecom reported net additions of 7.41 million wireless subscribers during the three-month period, including an increase of 9.02 million 3G users, giving the operator a total of 168.03 million mobile customers, of which 78.07 million were signed up to 3G plans. In the fixed telephony segment, increases in government and corporate subscribers failed to offset Telecom’s declining residential user base, leading a net loss of 1.3 million lines in service to a total of 161.7 million. Meanwhile, fixed broadband subscriptions grew to 93.18 million, from 90.12 million at 31 December 2012.