State-owned China Telecom, the U.S. A.’s 1/3 biggest cell phone operator by subscribers, said Wednesday that revenue grew in the first half of the year as income from iPhone sales kicked in. Beijing-primarily based China Telecom, also the world’s largest fixed-line telephone operator, stepped up marketing spending to woo buyers after it was the second Chinese mobile company to supply Apple’s popular iPhone in the first half of 2012. Firm officials had warned that the increased spending would harm short-term profitability but help in the long run.
The efforts seem to have paid off.
The company posted a 10.2 billion yuan ($1.7 billion) profit within the January-June period, up 16 percent from the year ahead.
Running revenue rose 14 percent to 157.5 billion yuan.
China’s three state-owned cell phone corporations are locked in an increasingly aggressive struggle as they make investments heavily in faster fourth-generation networks to make stronger new information-hungry smartphones and tablet computers. China Telecom Chairman Wang Xiaochu also warned of the possibility of free quick messaging apps such because the vastly in style WeChat that have eroded two important sources of revenue, textual content messaging and voice calls.
There are still uncertainties in-home regulatory policies, whereas the accelerated evolution of new technologies uses up industry competition,” Wang mentioned. “The cross-sector competitors of mobile internet step by step emerged. In the future, we can face new challenges.
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The company’s cellular clients rose to 174.5 million, up to 13.eight million from the end of closing 12 months. Cell information income rose 36 percent. Mounted strains slipped 4 percent to 159.6 million.
