Why has China Unicom (CHU) been struggling?

Includes: CHL, CHU
by: Ezra Marbach

Here is what Business Week has to say:

....China is the world's biggest cellular market, with more than 350
million subscribers. So you might think China Unicom (ticker: CHU) would be sitting
pretty. Yet Unicom, one of the country's two carriers and the only one
to operate a network based on Qualcomm's CDMA technology, has been
struggling -- while market leader China Mobile (ticker: CHL) has prospered. Last
year, Unicom's profits fell 24%, to $193 million, while sales rose just
7%, to $2.5 billion. Why? Customers have been slow to adopt CDMA
because the handsets are more expensive and coverage isn't as good.

Comment: See here for China Unicom's (ticker: CHU) Q1 earnings results.

CHU chart.