SPOTLIGHT: Service provider spotlight: China Telecom


China Telecom, like fellow fixed-line operator China Netcom, is facing the challenges that come with reliance on a traditional infrastructure in a market moving quickly to adopt untethered options. China Telecom has been hit especially hard by the mobile substitution trend, with voice calling moving to the wireless networks of China Unicom and China Mobile. Also, while IPTV has been a hit in Hong Kong, it hasn't much progress on the mainland yet. Still, China Telecom's earnings report yesterday, was viewed as more positive than China Netcom's last week.

China Telecom is awaiting government licensing of its 3G mobile spectrum, in which it probably will deploy TD-SCDMA technology. However, other mobile-related moves could shake up the market. Local newspaper reports have suggested that China Telecom could merge with China Unicom, and that China Netcom could do the same with China Mobile. For more about China Telecom, see this earnings story in The Standard.

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