China telcos under pressure, could get worse
發布時間:2010-08-06 18:09:15
摘 要:China's No.2 telephone company, China Unicom (0762.HK), could turn up the heat in the nation's already competitive mobile market as it fights to arrest a slide in market share and rising pressure on profits across the industry in the first quarter.
HONG KONG, April 16 (Reuters) - China's No.2 telephone company, China Unicom (0762.HK), could turn up the heat in the nation's already competitive mobile market as it fights to arrest a slide in market share and rising pressure on profits across the industry in the first quarter.
Industry leader China Mobile (0941.HK) and No.3 carrier China Telecom (0728.HK) have aggressively promoted their 2G and 3G wireless services over the past year following a broad industry overhaul, but Unicom has largely laid low since that time.
With the company steadily losing share in the world's largest mobile market, many believe it is only a matter of time before Unicom -- the sole seller of Apple's (AAPL.O) iPhone in China -- becomes more aggressive, putting already weak profit trends under further pressure.
"Competition between China Telecom and China Mobile has stayed relatively stable," said CLSA analyst Elinor Leung.
"The new unknown is Unicom, and whether they will increase their promotions. They're still relatively conservative, but if they want to achieve their 3G targets they will have to be more aggressive."
Third generation, or 3G, services provide access to high-speed wireless data, video and other advanced content, in addition to traditional telephone calls.
China's three telcos spent about $21 billion building their 3G networks in 2009, following the issue of licenses early in the year. Analysts expect 3G spending this year to fall about 20 percent.
Unicom is expected to fare the worst when the three carriers report their first-quarter results, starting with China Mobile on April 20, followed by China Telecom and Unicom on April 28 and 29, respectively.
Unicom is expected to report a profit decline of more than 50 percent to 1.68 billion yuan ($246 million), according to the average forecast of three analysts polled by Reuters.
China Mobile is expected to post a 7 percent profit gain to 27 billion yuan, while China Telecom is forecast to record an 11 percent fall in profit to 4.2 billion yuan, the poll indicated.
The results will mark the first time all three companies have comparable year-earlier figures, following the industry overhaul that saw the number of players reduced to three from four, and those three each awarded a third-generation (3G) mobile license.
Since that time, the trio have taken different tacks on 3G, with China Telecom the most aggressive in promotion of its network based on the CDMA 2000 standard.
China Mobile, the world's largest carrier with more than 500 million subscribers, has continued to aggressively promote its older 2G network, but has been more cautious on its 3G system, based on a homegrown Chinese standard called TD-SCDMA.
China Unicom has been the most cautious of the three, preferring to keep 3G as a premium service -- a strategy that has cost it market share and put pressure on profits.
Shares in China Unicom have underperformed so far this year, falling around 11 percent compared with a 20 percent rise for China Telecom and a 10 percent rise for China Mobile.
According to figures provided by the companies, China Mobile had 10.6 million 3G users at the end of February, while Unicom had 4 million. China Telecom had about 4 million 3G users at the end of 2009, out of a total mobile industry subscriber base of more 700 million.
(責任編輯:企業網 來源:企業網D1Net )
訪問過該頁面的個人會員
您可能喜歡下列新聞
D1Net推薦
專題推薦更多
新視點
點擊排行月 周
- China Mobile to trial TD-LTE networks in 3&nb
- China telcos under pressure, could get worse
- China Telecom To Roll Out FTTH Network
- China Telecom to start national IMS procurement
- China Preps for IP Triple Play
- Does Everyone in China Want Apple’s iPad?
- China Mobile Interested in Investing in Africa,&nb
- China Unicom Allies with Ping An Insurance fo
- China Unicom, Taiwan Mobile Cooperate For Roaming&
- View: PostView: Post China Telecom To Increase&nbs