BEIJING, April 23 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong, analyzes the 2006 annual reports of China's top 4 carrier operators.
By the beginning of April 2007, China's four major carriers, China Mobile, China Unicom, China Telecom and China Netcom (CNC) each released their 2006 annual reports. Their statistics show that the total revenue of these four carriers in 2006 amounted to 636.426 billion Yuan and their net profits added up to 107.362 billion Yuan.
China Mobile topped the four carriers, whose revenues surpassed the other three carriers by a large margin. China Telecom and CNC, however, saw a reduction in their rate of revenue increase. The main reasons were that mobile service fees kept decreasing while traffic distribution of the fixed networks increased, resulting in less revenue from voice services. Meanwhile, demand for broadband services increased rapidly and cancelled out some of the effects on the lines.
Fig. 1 Revenues of China's Four Major Carriers in 2006
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Both China Mobile and China Unicom boasted a remarkable increase of net profits in 2006. China Mobile was the top of the four, China Unicom had the greatest growth rate, whereas China Telecom and CNC saw some decrease in net profits. This indicates that mobile operators had further enhanced profitability while fixed networks operators witnessed continuously reduced profitability due to greater challenges to their main operations.
China Mobile had a net profit of 66.026 billion Yuan in 2006, an increase of 23.3% over 2005.
China Unicom achieved a before-tax profit of 8.44 billion Yuan in 2006, marking an increase of 29.4% over the previous year. Among this amount, net profit was 3.64 billion Yuan, an increase of 28.2% over 2005; and the profit per share was 0.172 Yuan. Of the total before-tax profits, 6.96 billion Yuan was achieved by GSM mobile phone services, while CDMA services achieved 1.03 billion Yuan, making an annual profit for the first time.
China Telecom made a net profit of 27.142 billion Yuan in 2006, including profit from installations, a 2.8% decrease from the 27.91 billion Yuan in net profits in 2005. Apart from installation revenues, China Telecom had a net profit of 22.171 billion Yuan and increased by 4.9% from 2005.
CNC made a merged net profit of 10.554 billion Yuan, a 6.7% decrease from the previous year. And the basic profit per share was 1.95 Yuan.
Fig. 2 Net Profits of the Four Major Carriers in 2006
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China Mobile had over 301 million subscribers in 2006, a 22.1% increase from 2005. The total time of calls made by the subscribers added up to 1,252.15 billion minutes and on average 381 minutes were used per subscriber per month (MOU). The ARPU was 90 Yuan on average per subscriber per month.
China Unicom saw a very fast increase of mobile subscribers with a net increase of 14.572 million users, while the total subscribers amounted to 142.366 million. 20.04 million users subscribed to CDMA 1X wireless data services.
CNC had 15.081 million broadband subscribers, an increase of 31.4% over 2005. However, local telephone subscribers decreased for the first time ever.
China Telecom marked an increase of nearly 35% in broadband subscribers, which amounted to 28.32 million. China Telecom President and CEO, Mr. Wang Xiaochu said that the telecom industry is faced with more intense competition due to the irreversible replacement of conventional telephone services by cell phones.
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CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
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Cynthia Liu
Coordinating Manager
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Email: liuyan@ccidconsulting.com
