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China Telecom profit sinks along with 2009 spending


24.03.2009

China Telecom, the largest telco in China, said that its 2008 net income of $129.4 million was about 96 percent lower than the previous year, despite a 3.3 percent increase in revenue. Some of the drop was due to the company being ordered by the Chinese government to shut down its wireless Personal Handyphone System business in anticipation of 3G mobile introduction, a rollout China Telecom will now participate in after China`s industry-wide initiative last year.

The telco plans to reduce its capital spending by about 19 percent for 2009 compared to 2008, but also will issue debt to finance its mobile expansion in an effort to have 100 million mobile customers by 2011.

 

 

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