3G network investment slows down

From January to July 2010, the fixed asset investment of China's telecommunication industry fell 29 percent compared with the same period of 2009, according to the statistical data from the Ministry of Industry and Information Technology released on Sept. 2.

By the end of July, the three major telecommunications operators of China completed a total of 22.4 billion yuan of actual investments, accounting for only 24 percent of the annual plan.

China Telecom, China Mobile, and China Unicom completed investments of 12.8 billion yuan, 7.8 billion yuan and 1.8 billion yuan, respectively, and the completed investments of China Unicom accounted for less than 10 percent of its annual plan.

China Unicom said as the 3G service is still in the initial phase of operation, the revenues of 3G services still cannot make up for the influence of factors such as the 3G network operation and maintenance, asset depreciation and marketing costs as well as the decline of fixed line business.

From January to July 2010, the net increase of national 3G users reached more than 14.8 million, including nearly 2.9 million new users in July. Zhang Feng, director of the Communication Development Division under the Ministry of Industry and Information Technology, said that there is a gap between the actual 3G user development and the expectation.

Officials from the operators said that they will develop a batch of student markets in September. In addition, as the price of 3G mobile phones is falling, no major problems are expected for the completion the annual target of 3G user development.

By People's Daily Online