Wang Xiaochu: iPhone 5 performance to decide China Telecom on its subsidy

by Rosgani 0

Rumors iPhone 5 will coming on September 2012, China Telecom Chairman Wang Xiaochu said the company would decide on whether to introduce iPhone 5 as a new product based on how different the functions of the new phone are compared to iPhone 4S.

Wang noted the company’s guidance for handset subsidies is 23-24% for handsets other than iPhone. According to China Telecom earnings, China Telecom’s revenue in the first half of 138.021 billion yuan, a year-on-year growth of 14.8%; profit attributable to shareholders of 8.814 billion yuan, down 8.3%. Which handset subsidies in the first half of the year surged more than 50 percent to 11.5 billion yuan.

iPhone 5 Performance drastic change will increase subsidies
Results briefing, Wang said, the handset subsidies surged mainly from the second quarter, up for sale iPhone, the phone subsidy amount in the second half of the year is expected to be similar to the first half .

How to introduce the iPhone 5, Wang said, I do not know Apple introduced the new iPhone performance, the subsidy policy is not yet clear if the new iPhone performance is a dramatic shift may make subsidies to increase, otherwise, I believe will remain relatively stable, longer increase the subsidy rate. He also said that China Telecom handset subsidy policies are mainly developed by proportion of income, income continued to increase, the subsidy will be synchronized to rise, China Telecom without deliberately raised the goal of handset subsidies.

China Telecom the first half of the average income per household per month (ARPU) fell to 1-74 yuan, Wang said, mainly due to the first half of 3G net increase of the number of customers increased dramatically, but he stressed that China Telecom mobile service ARPU 3G values  remained stable, excluding the impact of users on the card, mobile services ARPU value should be increased.

Xiaochu also belong to the normal performance for China Telecom broadband ARPU value of the business in the first half fell because of intensified competition in the industry, as well as China Mobile last year commitment to increase the city fiber transformation efforts to expand the low-end user base; rural broadband users increase also dragged ARPU decreased slightly.

However, he believes that the optical fiber transformation of China Telecom completed next year, will have a positive contribution to the company.

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