China Telecom confident on 3G service
By Jonathan Yeung (China Daily)
Updated: 2006-05-24 09:03 "Our strong capital and complete network allow us to
provide wireless services without any problem."
Wang said that time was
running out if the mainland wanted to meet its goal of providing 3G service by
the 2008 Beijing Olympic Games.
"We expect to get our licence (3G
licence) soon because, unlike fixed-line, we will need a longer time to improve
and optimize its mobile network," he added.
According to Wang's
estimate, China Telecom should be able to provide complete 3G services seven to
eight months after getting its 3G licence.
As the mainland's fixed-line
phone market becomes saturated, China Telecom is looking to non-voice services
such as Internet Protocol Television (IPTV) and broadband Internet to drive the
company's further growth.
China Telecom and Shanghai Media Group (SMG)
have been jointly test-running IPTV services in Shanghai since late
2005.
"All tests are going well there and we are waiting for the final
approval to launch it (IPTV) nationwide," Wu Andi, China Telecom's executive
director, told China Daily, without giving any further details.
IPTV is a
system where a digital television service is delivered to subscribing consumers
using the Internet Protocol over a broadband connection. The State
Administration of Radio Film and Television issued the first IPTV licence to SMG
last May.
Having added a total of 7.19 million new subscribers in its
broadband service in 2005 alone, China Telecom saw its total number of broadband
subscribers climb up to 23.16 million in the first quarter of 2006, 10 per cent
up from the previous quarter.
It expects to double its broadband
subscribers to 40 million in three to four years. "Turnover from the broadband
service and IPTV will account for about 35 per cent of the company's total
turnover by 2007," Wang told reporters yesterday.
China Telecom posted a
net profit of 5.91 billion yuan (US$738 million) in the first quarter of 2006,
while its operating revenue (excluding connection fees) amounted to 41.76
billion yuan (US$5.22 billion), an increase of 7.3 per cent year on year.
Shares in China Telecom increased slightly by 0.99 per cent
to close at HK$2.55 (45 US cents) yesterday.
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