 Fixed-line firms are finding it hard to compete with mobile operators |
China Telecom, the country's largest fixed-line provider, has seen a drop in half-year profits fall as consumers increasingly favour mobile phones. Profits in the six months to 30 June fell to 13.48bn yuan ($1.87bn; �898m), down from 14.16bn a year ago.
China Telecom faces tough rivalry from firms such as China Mobile, which have been offering cheaper sign-up rates.
The firm said it faced "immense pressure of declining voice revenue" as mobile operators expanded aggressively.
This latest figures are in contrast to China Mobile which recently reported a 26% rise in half-year profits to 37.9bn yuan.
Both it and rival mobile operator China Unicom have been targeting out-of-town and rural areas in a bid to boost subscriber numbers.
The number of fixed-line customers at China Telecom rose to 224 million during the first half, marking an increase of 1.45 million users, while its broadband subscribers increased by 3.87 million to 32.19 million.
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