Telecom will no longer increase 3 g base station into the handset subsidy unchanged

August 27, message, according to China Telecom performance conference revealed message, China Telecom's 3 g services will not increase in capital expenditures, future will not be increased to 3 g base station, it will be on telecom equipment providers.

3 g business without increasing capital expenditure on

China Telecom General Manager Wang Xiaochu more on China Telecom 3 g business's future strategy.

He said China Telecom will increase the capital expenditure in the second half, but mainly for the development of broadband.

As for why not 3 g business increased capital expenditure, Wang Xiaochu said that the past year and a half of China Telecom's 3 g business development has been relatively good basis, so the original plan of 270 million 3 g business capital expenditure has been able to meet the development, the future will not be increased to 3 g base station.

It is understood that, in the 3 g network construction, China Telecom has been achieved in the first half of this year 3G cover all cities at or above the county level and 2 000 Township, network connection is quite complete and has been faster Wi-Fi hotspot building and optimizing the layout.

Handset subsidies remain unchanged

In addition, subsidies on mobile, China Telecom in the first half of the country of cell phone allowance is 60.98 billion yuan, an increase of 26%.

In addition, China Telecom's 3 g service ARPU for $ 110.

Wang Xiaochu, handset subsidies covering mobile revenue of about 27%, in line with internal goals.

The future will continue to maintain the annual mobile handset subsidy does not exceed 30% of service revenue, but if the goal of taking into account the extension of the mobile service, mobile phone subsidies shall not exceed 40%.

According to reports, China Telecom's CDMA users total 7452 million, of which 3G users as 718 million, respectively, compared with the end of last year increased 32.9 and 76.4% market share for mobile users nearly 10%.

One of the 3 g mobile phone users in total number of 3G user 1/3, a late last year to increase the proportion of 20%.

To this end, the investment bank Goldman Sachs comment that China Telecom's 3 g users increasingly improve, due to 3 g mobile phone users than Internet card user 3G bring higher returns and profits constitute its future profit positive factors.