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China Telecom Corporation Limited (CHA)

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  • Sep. 10, 2012, 5:16 PM
    China Mobile's (CHL) text messaging revenue declined to CNY 46.5B ($7.33B) last year, down from a 2009 peak of CNY $53.6B ($8.46B). The drop highlights the disruptive impact instant messaging and microblogging platforms, such as Tencent's QQ and Sina's Weibo, are having on the business models of Chinese carriers. Thus far at least, U.S. carriers have been able to avoid the same fate
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  • Aug. 22, 2012, 2:17 PM
    Apple (AAPL +1.1%) roundup: 1) China Telecom (CHA) mentions in its Q2 report it added 8.35M subs, something it largely credits to the iPhone 4S. 2) Digitimes sources claim Q3 production of the new iPhone will be less than 15M units, below a prior forecast of 20M, due to low yields (previous) for in-cell touch panels and new dock connectors. If true, that could have negative implications for suppliers. 3) Needham is raising its PT to $750, and its FY13 EPS estimate to $50.
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  • Aug. 22, 2012, 3:10 AM
    China Telecom (CHA): H1 net profit -8.3% to 8.81B yuan ($1.39B) vs. consensus of 7.72B yuan. Revenue +14.8% to 138.02B vs. 134.66B yuan. 3G users +40% from end of 2011, faster than rivals. iPhone marketing expenses to weigh on profitability. To acquire CDMA assets from parent company for 84.6B yuan, lower than expected. Not offering dividend for H1. (PR)
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  • Aug. 16, 2012, 11:06 AM
    China Mobile (CHL -5.5%) slumps after its Q2 earnings miss estimates, and the company promises to continue investing heavily in phone subsidies. Much like the U.S. mobile industry (previous), ramping sales of subsidized smartphones appear to be hurting the margins of Chinese carriers. Another challenge is the growing mobile adoption of instant messaging and social networking services such as Tencent QQ and Sina Weibo, which is impacting voice and text-messaging activity.
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  • Jun. 29, 2012, 1:35 PM
    Bernstein's Tony Sacconaghi becomes the latest analyst to air a cautious note about near-term iPhone (AAPL +1.9%) sales (I, II). Sacconaghi thinks Chinese sales may have fallen by 1.5M Q/Q in in the June quarter, thanks to an inventory build-up and a slowdown in sales at China Telecom (CHA - previous). However, he sees China's growing middle class increasing the iPhone's addressable market by 55M over the next 5 years, and notes the iPhone's customer loyalty remains unmatched.
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  • Jun. 18, 2012, 6:01 PM
    China Telecom (CHA) has reportedly placed an order for 40M phones capable of running on its EV-DO 3G network. Most of the phones will sell for CNY700-2,000 ($111-$317). Qualcomm (QCOM), the dominant player in the EV-DO baseband chip market, should benefit. Chinese 3G adoption has surged in recent months. (also)
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  • Jun. 6, 2012, 5:54 PM
    Apple's (AAPL) legal team is staying busy. The company is now seeking a U.S. ban on Samsung's (SSNLF.PK) flagship Galaxy S III, which is due to be sold by all 4 nationwide carriers. Apple claims the phone violates its widely-applicable phone number-linking patent (previous), and also a unified search patent. The efforts come as Samsung prepares to launch the S III in China with all 3 major carriers (CHL, CHU, and CHA).
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  • May. 30, 2012, 4:14 PM
    It took long enough, but new iPad (AAPL) models featuring 3G connectivity have finally been cleared for sale in China. No 4G connectivity exists, since Chinese carriers haven't yet received government clearance to offer 4G services, and might not receive it for some time still. Wi-Fi only models were cleared in late March. Thus, Apple's 3x Y/Y increase in Chinese sales in the March quarter happened largely without any benefit from the new iPad.
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  • May. 22, 2012, 2:38 PM
    China Mobile (CHA +1.8%) trades higher on an upgrade to Outperform from Credit Suisse, which sees strong 3G uptake in "Tier 2" Chinese cities leading to double-digit revenue growth for the country's carriers. CS notes 2/3 of China's net adds since April '11 have involved 3G, leading its penetration rate to grow to 15.6% of phones, and that 3G subs tend to sport higher ARPUs. Outperforms are reiterated for China Mobile (CHL) and China Unicom (CHU - previous).
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  • Mar. 28, 2012, 6:30 AM
    Nokia (NOK) shares +3.7% after the firm says it will start selling Windows Lumia smartphones in China from next month. Nokia, which is seeking to recover a plunge in market share from Apple and Samsung, is initially selling the devices through China Telecom (CHA), but plans to market its products through the other two big carriers as well.
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  • Mar. 22, 2012, 2:15 PM
    China Unicom (CHU -2.6%) heads lower after reporting a 2011 profit that missed expectations, as 3G and broadband subscriber growth fails to offset declining 2G subs and growing handset subsidy costs. Unicom, which plans to spend CNY100B ($15.9B) in 2012 capex, now also has to contend with a loss of Chinese iPhone exclusivity, as rival China Telecom (CHA) begins selling the 4S. (earlier)
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  • Mar. 22, 2012, 12:55 PM
    Bemoaning average download speeds that are well below the global average, the Chinese government is calling for a new national broadband strategy. A major broadband push by the government would have an impact on top ISPs CHA and CHU, whose broadband investment levels have been criticized, and perhaps also merging online video sites YOKU and TUDO.
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  • Mar. 21, 2012, 12:18 PM
    Nomura's Romit Shah likes Broadcom's (BRCM +0.5%) acquisition of BroadLight. He notes BroadLight recently added China Telecom (CHA), which hopes to have 30M fiber-to-the-home subscribers by 2015, as a customer, and that its processors complement Broadcom's existing fiber chip solutions.
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  • Mar. 20, 2012, 8:27 AM
    China is on the brink of passing a whopping 1B cell-phone subscribers - if it hasn't already - with February snapshots from operators showing that the number stood at 999.7M. China Telecom (CHA) has 132.3M customers, China Mobile (CHL) 661.4M, and China Unicom (CHU) 206M. Apple and co. must be rubbing their hands with glee.
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  • Mar. 12, 2012, 8:21 AM
    Apple's (AAPL) strategy of aligning itself with just one mobile carrier in China appears to have backfired, where the iPhone has amassed only a 7.5% share vs. Samsung's (SSNLF.PK) 24.3%. Apple launched sales through China Telecom (CHA) last week, which should help boost its share. But CHA, though huge by western standards, is the smallest of China's top three carriers.
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  • Mar. 9, 2012, 7:04 AM
    China Telecom (CHA) starts selling the iPhone in China today with a plan to bring customers in by offering subsidies due to the high cost of the phone relative to average wages in the nation. Though the company says the move will add long-term growth, BNP Paribas analyst Alen Lin reduces his rating on the CHA to Hold from Buy on near-term profit concerns.
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Company Description
China Telecom Corp Ltd along with its subsidiaries is an integrated information service company. It offers telecommunications services, including wireline voice services, mobile voice services, Internet access services, value-added services.
Sector: Technology
Country: China