China Telecom Corp, the nation's biggest fixed-line phone company, said first-half profit fell as wireless carriers including China Mobile Ltd attracted users by cutting prices.
Net income declined 4 percent to 11.6 billion yuan (US$1.7 billion), the Beijing-based company said yesterday, without providing comparative figures. The profit, which excluded gains from connection fees, compares with the 12 billion yuan median estimate of five analysts in a Bloomberg survey.
Lower call charges by China Mobile and China Unicom Ltd prompted the nation's consumers to switch to wireless services at a faster pace. China Telecom and its parent plan to spend US$16 billion on acquisitions this year to enter the mobile-phone market under a government-mandated revamp of the domestic telecommunications industry.
"Demand for fixed lines weakened quite markedly this year," said Victor Yip, who rates China Telecom shares "hold" at UOB Kay Hian Ltd in Hong Kong.
(Shanghai Daily August 29, 2008)
