China Telecom Reports Respectable Profits

By Erin Monda August 25, 2010

Everybody knows China is growing.

And that goes for its telecom companies as well.

China Telecom, the country’s third-largest mobile operator and largest fixed-line provider, just declared its financial results for the first half of 2010 -- and they are pretty impressive.

Perhaps it is a result of the telecom's recent initiatives. Lately, it has been enhancing its customer-focused initiatives and tweaking its operational schematics to create edges.

According to China Telecom’s press release, its tactics worked. “…Mobile service continued to maintain robust development with expanding scale, while mobile terminal supply also showed significant improvement.” The company “strengthened its market leading position in wireline broadband and integrated information services. The overall business structure was further optimised with remarkable earnings recovery.

In summary this means, “The sustainable development of the company’s full services integrated operation is gaining momentum.”

In plain English, it means the telecom provider produced some pretty stable results. For the six months preceding June of 2010, China Telecom reported a profit of $1.34 billion. About 56 percent of that revenue came from the mobile voice market, 35 percent from mobile data and about 10 percent from “miscellaneous” accruements (read: sales of mobile handsets).

As per statements made by Mr. Wang Xiaochu, chairman and CEO at China Telecom, the company plans to keep up its momentum by deepening integrated operations, accelerating the promotion of broadband access and coordinating its core service offerings (mobile, broadband, wireline and voice).

As well it should – there’s going to be a lot of demanding consumers out there. According to a Frost & Sullivan analysis at the end of 2009, the number of “Asia-Pacific's fixed broadband subscribers are expected to grow 17.3 percent to reach 182 million users by the end of 2009, clocking estimated billings of $44.9 billion, a rise of 13.3 percent over 2008.”

Erin Monda is a TechZone360 Contributing Editor. To read more of her articles, please visit her columnist page.

Edited by Erin Monda

TechZone360 Contributor

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