Friday, January 4, 2008

China Telecom sees increase in profits but lost 2.74 million customers in 2007

Its business as usual for China Telecom registering a turnover of 177.1 billion yuan ($24.5 billion) in 2007, up by a slight 2.4% year on year. Local media reports that the company's net profit was expected to reach 26.6 billion yuan ($3.6 billion), up 1.9% year on year.

Meanwhile, China Telecom said its telephone user number reached 227 million by the end of 2007, while its broadband user number reached 38.1 million.

Though still registering a slight increase in profit, China Telecom lost 2.74 million users in the first 11 months of 2007, and is expected to record its first customer-churn year since it made the IPO in 2002.

The broadband service sector and value-added service sector have become the main driving force to China Telecom's growth in business turnover. And i believe the global fixed network operators are experiencing similar customer-churn as more users are migrating to mobile network.

The key to fixed network operators continuous growth is mobile. China Telecom will soon join the mobile playing field as they are a prime candidate for one of the 3g licenses that will be awarded this year and I m certain that they will give China Mobile a better reason to be more competitive.

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