Telecom firms post growth in earnings

HONG KONG: The total revenue of the country's three telecommunication operators amounted to 1.4 trillion yuan ($223 billion) last year, with net profit reaching 133.3 billion yuan owning to strong demand for faster wireless data services. China Telecom Corp Ltd said its net profit was 18.6 billion yuan in 2017, a 3.3 percent rise compared with the previous year. Its revenue rose 3.9 percent to 366.2 billion yuan, with 4G mobile subscriber numbers growing to 182 million.

China Mobile Communications Corp, the world's largest mobile carrier by subscribers, last week reported its net profit was 114.3 billion yuan compared with 108.7 billion yuan a year earlier, an increase of 5.1 percent, while its total operating revenue rose 4.5 percent to 740.5 billion yuan.

The company had a net addition of 114 million 4G customers, bringing the total number of 4G customers to 650 million, while the 4G penetration rate of its mobile customers reached 73 percent. China United Network Communications Group Co Ltd saw its net profit jump 176.4 percent year-onyear to 430 million yuan in 2017, as the country's mixed-ownership reform has enhanced its competitiveness and improved financial performance. The country will scrap domestic data roaming charges from July 1, as it steps up efforts to offer more affordable telecom services, said Miao Wei, minister of industry and information technology in early March.

Rates for mobile internet services will be cut by at least 30 percent this year, according to the government report, emphasizing the country will significantly lower the rates of home broadband, corporate broadband and dedicated internet access services. "The lowering of mobile data fees will bring about big pressure on the growth of revenue and profit," said Shang Bing, chairman of China Mobile. Shang estimated the company's mobile data costs will be lowered by more than 30 percent this year, and they will create more value and lower the price to attract more users.