Profit of China telecom fall by 27 %-imp. Information by ashok Hindocha M-9426201999

www.bsnlnewsbyashokhindocha.blogspot.com
China Telecom profits fall by 27%
China Telecom, the country's largest fixed-line provider, has seen first quarter profits fall 27.4%.

Demand for traditional fixed-line telephone services has waned as consumers increasingly favour using mobile phones.

Profits in the three months to 31 March fell to 4.7bn yuan ($686m; £470m), down from 6.5bn yuan a year ago.

China Telecom, which last year expanded into mobiles, faces tough competition from firms such as China Mobile.

China Telecom is also trying to drive growth by providing high-speed internet access.

Meanwhile its number of fixed-line accounts dropped to 204 million in the first quarter, compared with 208.4 million in the previous quarter.

However there was some positive news as the number of subscribers to China Telecom's new mobile service rose 5% on the previous quarter to 32.8 million.

China Telecom said introducing the mobile phone service would lead to short-term pressure on its overall profitability, but would significantly enhance the firm's long-term development.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/8007777.stm
www.bsnlnewsbyashokhindocha.blogspot.com

Published: 2009/04/20 09:08:55 GMT

© BBC MMIX
www.bsnlnewsbyashokhindocha.blogspot.com