China Telecom's 1Q-3Q net profit down 34 percent

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SHANGHAI -China Telecom Ltd. said Tuesday that its profit in the first three quarters of the year sank 34 percent on weakening demand for traditional fixed-line phone services.

China Telecom earned 11.4 billion yuan ($1.7 billion) for the nine months ended Sept. 30, compared with 17.2 billion yuan in the same period a year earlier, the Beijing-based company said. That was despite a 15.3 percent rise in revenues to 154.7 billion yuan ($22.6 billion).

The company did not give separate figures for July-September.

With demand for fixed-line services falling as customers opt for mobile phones, China Telecom is trying to drive revenue growth by promoting high-speed Internet access and other new services. It expanded into mobile phone service last year, taking over a CDMA network from rival China Unicom Ltd. in a government-orchestrated industry restructuring.

Rolling out mobile services is putting pressure on overall profitability but will enhance the company's finances in the long term, the company says.

China Telecom's fixed-line accounts dropped to 194 million at the end of September from 199 million in the previous quarter, the company said.

The company is expanding its broadband and wireless services, reporting nearly 47 million mobile service subscribers as of Sept. 30, up from 39 million at the end of June.

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China Telecom Ltd.: http://www.chinatelecom-h.com

2009-10-20 08:20:49