China Telecom continues mobile, broadband growth

28 Oct 2013

Fixed and wireless provider China Telecom has booked a 13.4% increase in operating revenues for the first three quarters of 2013, registering turnover of CNY238.19 billion (USD38.9 billion), compared to CNY209.98 billion a year earlier. Operating expenses grew by 12.2% year-on-year to CNY215.43 billion although notably, the acquisition of mobile network assets from the company’s parent in late 2012 saw network operation and support expenses drop by 21.8% to CNY36.92 billion. Net profits for 9M13 were CNY14.81 billion, up 17.1% from CNY12.65 billion.

Telecom continues to see rapid expansion in the wireless segment, and has achieved a high level of conversion to more lucrative 3G products. The telco registered 181.14 million wireless users as at end-September 2013, of which 96.48 million were 3G subscribers, compared to 152.62 million and 59.72 million respectively a year earlier. ARPU for wireless services was stable y-o-y. Broadband subscriptions also saw expansion, with Telecom claiming 98.04 million users (+12.7% y-o-y ), although the decline in fixed voice telephony accelerating, registering 5.07 million net disconnects in 9M13, up from 3.63 million in 9M12.

China, China Telecom Corporation