Fixed-line firms are finding it hard to compete with mobile operators
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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.
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