Mobile phone seems to appear the main enemy of many telecom corporations. Make a mobile call could be an expensive but when it is urgent you usually apply for it and it does not matter you pay “big” money because you’re the owner of such a fashionable mobile phone. There are too many reasons why we use mobile phone almost in every situation.

China Telecom Corp. is one of those who have problems to that point because its annual profits fell 13 percent last year as more customers switched to mobile phones. Net profit in 2007 fell to 23.7 billion Yuan ($3.4 billion), from 27.2 billion Yuan in 2006. An income from its voice business fell 7.9 percent from the year before as the number of its access lines in service fell 1.2 percent to 220 million, from 222.7 million in 2006. However, overall revenues climbed 1.7 percent to 178.7 billion Yuan ($25.5 billion) from 175.6 billion Yuan.

China Telecom is gearing up for a "full services offering" to expand its non-fixed line broadband and wireless businesses as it struggles to compete with cell-phone rival China Mobile.

"Although the intensifying market competition is a serious challenge to us, the upcoming full services offering will bring enormous business opportunities," - Wang Xiaochu, China Telecom's chairman, said in a statement.

The company saw declines in virtually every area of its traditional phone business. Revenue from local phone services, which comprised nearly 40 percent of total operating revenues, fell 9.8 percent. Upfront connection fees dropped 33.7 percent; installation fees fell 6 percent; income from monthly fees declined 12.5 percent; and revenue from long-distance phone services sank 6 percent.

Millennium challenge – is not amazing? Mobile business still grows up and “others” start sinking.

Reference:

http://www.chinatelecom-h.com/eng/global/home.htm