3G drives China Telecom Capex to reach $5.4 billion in first half 2013

China Telecom Capex (capital expenditure) reached $5.4 billion (RMB 33.1 billion) in the first half of 2013. 3G was the main driver.

Out of $5.4 billion, China Telecom invested 52.7 percent of Capex in Internet and broadband.


China Telecom invested 22.8 percent of Capex in mobile network; 9.9 percent in mobile VAS; 2.9 percent in IT; 0.5 percent in wireline network and 11.2 percent in infrastructure.

The telecom major says 3G network investment focuses on optimization and capacity expansion in high data traffic areas, creating superior network coverage & customer experience on the move.

“The demand for social informatisation will continue to expand, which will bring in opportunities for further scale expansion of the company’s 3G service,” said China Telecom Chairman Wang Xiaochu.

China Telecom’s operating revenues rose 14.1 percent to RMB 157.5 billion.

Excluding mobile terminal sales, operating revenues increased 10 percent to RMB 139.2 billion.

EBITDA was RMB 50.1 billion, while EBITDA margin was 36.0 percent.

China Telecom profit rose 15.9 percent to RMB 10.2 billion.

The net addition of mobile subscribers was 13.88 million and the number of mobile subscribers reached 175 million, of which the net addition of 3G subscribers was 18.28 million. 3G subscribers accounted for 50 percent of total mobile subscribers.

The 3G smartphone subscribers accounted for 44 percent of total mobile subscribers.

3G drives China Telecom Capex to reach 5.4 dollar billion in first half 2013

Mobile service revenues rose 28.3 percent to RMB54.6 billion and accounted for 35 percent of the total revenues.

China Telecom revenues from wireline broadband services rose 5.5 percent to RMB 35.2 billion.

The number of wireline broadband subscribers reached 95.82 million with a net addition of 5.7 million, among which the number of Fibre-to-the-Home (FTTH) subscribers reached 21 million.

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