Chinese fixed-line operator China Telecom is to acquire a 3G CDMA mobile network from its parent company China Telecommunications.
Speaking to journalists, chairman Wang Xiaochu said that China Telecom currently leases the network, which he valued at…
Chinese fixed-line operator China Telecom is to acquire a 3G CDMA mobile network from its parent company China Telecommunications.
Speaking to journalists, chairman Wang Xiaochu said that China Telecom currently leases the network, which he valued at Yn90bn (US$14bn). The transaction price, which has yet to be decided, would be funded with debt and completed by the end of 2012, he added.
China Telecom’s 3G customer numbers have reportedly risen from 4.1 million at the end of 2009 to 12.3 million as of the end of 2010. Its total subscribers number 90.52 million.
The company was quoted saying that it had seen its lease rate go up by 59% to Yn13.3bn last year.
In its 2008 telecoms reorganisation, the Chinese government transferred the CDMA network from China Unicom to China Telecommunications.
Announcing FY 2010 results, China Telcom said its profit had risen 8.6% to Yn15.88bn, while revenue was up 5% at Yn219.86bn. Revenue from mobile services has risen from 17.1% to 24.6%. The company said its strategy for the year will centre around attracting higher value customers via subsidies, more smartphones and bundles.
