China Telecom, a newcomer to China's mobile market, operates the country's largest fixed-line network and is aggressively promoting broadband over that channel. It remains the smallest mobile operator in China with 94 million users at the end of January, compared to 170 million at China Unicom (CHU) and 589 million at China Mobile (CHL).
Its number of broadband subscribers rose 18.7 percent in 2010 from the prior year to 63.5 million, as the company focused on attracting higher-yielding customers to make up for a fall in revenue from its mainstay fixed-line operations.
Like its peers in more developed economies, China Telecom has been seeing revenue from its core fixed-line operations slip as more users migrate to mobile. The company has been trying to push data and value-added services to make up for the shortfall.
China Telecom plans to triple the number of users for its fibre-optic broadband service this year to reach 30 million. The company further aims to grow the user base to 100 million by the end of China's twelfth Five-Year Plan (2011-2015).
Broadband development will account for 80 percent. "Only 23 percent of Chinese families have internet access now, so China still has huge potential in this industry," said China Telecom chairman Wang Xiaochu.
The company will follow the government's policies to improve infrastructure and cooperate with local authorities to integrate telecommunications, television, and internet networks. China Telecom further plans to introduce cloud computing and 'internet of things' services, more internet applications for mobile and fixed internet users, and to accelerate its transformation into a comprehensive telecommunications provider.
Last week China Telecom announced a FY2010 net profit of Rmb 15.8 billion (+9% year-on-year). Mobile ARPU continued to decline, with Q4 2010 declined by 18% year-on-year and 9% quarter-on-quarter.
Mobile ARPU continued to decline, with Q4 2010 declined by 18% year-on-year and 9% quarter-on-quarter.Management indicated that the decline in CDMA ARPU is attributable to more aggressive voice subsidies to retain subscribers and maintain growth momentum (Chart 1). There is no ARPU guidance for 2011.
- Stronger-than-expected mobile subscribers
- An early and successful launch of CDMA iPhone
- A big international acquisition
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