Sina Technology News, afternoon of May 25th - China Telecom stated on Tuesday that the absolute value of the decline in fixed network business revenue in 2010 is expected to be on par with last year, and currently there is no need to adjust the 3G fee. "Our fixed network segment fell by 5% in the first quarter, mainly due to mobile substitution and the high-end conversion of Xiaolingtong (a type of cordless phone), as well as intensified competition in the fixed network market. Overall, there are risks involved, so we have proactively released some," said Chairman of China Telecom, Wang Xiaochu, to the media after the annual shareholders' meeting, referring to Guangzhou fax special offers.
Last year, China Telecom's fixed-line telephone revenue dropped by 3.2% to RMB 172.6 billion yuan, with the fixed voice service which accounted for 45% of total revenue falling by 18.5%. In 2009, its fixed-line telephone user count was 189 million, with an annual drop rate of 9.5%.
Moreover, Wang Xiaochu pointed out that China Telecom does not currently need to adjust its 3G service fees, and expects to achieve the goal of adding 8 million new 3G users this year. "Fee adjustments by various operators are within our expectations. Currently, the penetration rate of 3G is very low, what is needed is to stimulate the market... Users with higher internet usage can be given some discounts, but general fees will not be adjusted," he added.
He also mentioned that from the beginning of the year up until now, the total number of mobile users of China Telecom has exceeded 70 million. According to earlier announcements by China Telecom, its mobile users increased by 4.6% in April to reach 68.48 million; while its fixed-line telephone users decreased by 1.2 million to reach 183 million.
China Unicom has already announced in mid-May that it has increased subsidies for Apple iPhone users to expand its 3G user base, and expects the mobile subsidy for 3G services this year to be between RMB 3-5 billion yuan.
Wang Xiaochu also frankly stated that mobile payment is a major direction for the development of China's telecommunications industry, hence plans have been made this year to promote mobile payments in 18 relatively economically developed provinces, collaborating with various banks, though he did not disclose the form of cooperation.
In March, China Mobile invested RMB 39.8 billion yuan in cash to acquire a 20% stake in Shanghai Pudong Development Bank to develop mobile payment services. (Mumu)
Related reading: China Telecom discusses negotiations for introducing the iPad based on circumstances; Wang Xiaochu: China Telecom's fixed network income fell by 5% in the first quarter.