China Telecom Capex dips 44% in H1 2014 to $5.4 bn

China Telecom today said its Capex (Capital spending) decreased 44 percent in H1 2014 to $5.4 billion or 33.14 billion yuan.

The Chinese telecom operator invested 37.8 percent (22.7 percent in H1 2013) of telecom infrastructure Capex in its mobile network, 38.3 percent (53.3 percent) in broadband and Internet, 7.5 percent (9.9 percent) in VAS, 3.3 percent (2.9 percent) in IT and 13.1 percent (11.2 percent) in infrastructure in the first half of 2014.

China Telecom Capex structure in H1 2014

China Telecom Capex

The company said its investment tilted toward 4G and Internet businesses.

China Telecom aims to realize in-depth 4G coverage in key cities and high data traffic areas with 140,000 4G LTE base stations (80,000) and 60,000 indoor radio distribution systems in 2014.

The state-owned China Telecom continued its investment in wireline broadband and Internet to support business development with FTTH coverage reaching around 100 million homes.

China Telecom Capex H1 2014

In future, China Telecom’s investment in mobile network will be focused on in-depth 4G network in select key cities to enhance customer experience and operating return.

In H1 2014, China Telecom’s new 4G base stations reached 90,000 against 26,000 in the same period last year.

The telecom operator also ensured the availability of 10,000 indoor radio distribution systems in place.

In the first half of the year, China Telecom FTTH coverage reached 96 million homes against 12 million in December 2013.

China Telecom, which competes with China Mobile and China Unicom, has also expanded metropolitan network and back-haul capacity to support growing data traffic volume.
Meanwhile, China Telecom H1 2014 revenue rose 5.3 percent to $26.9 billion or 165,973 million yuan, while net profit increased 11.8 percent to $1.85 billion or 11,436 million yuan.

Baburajan K
[email protected]