A China Mobile Unicom As China looks set to continue its relentless economic growth into the foreseeable future, in all areas of its industries, how it reacts to the strong influence of VoIP will be carefully monitored by industry experts.
According to BDA, an IT based consultancy, China's China Telecom revenue got hit hard during the first half of 2005, all because of the nation's increase in VoIP use.
Dongming China Mobile Unicom Zhang, BDA's research director explained to UPI that the revenue from long distance calls, for China Telecom, had fallen by 2.8% from the first half of 2004 to the first half of 2005, from $1,858 to $1,805.
A China Mobile Unicom VoIP has by far and away been the greatest factor influencing the decrease in revenue. With China Telecom's second largest money stream (18.2% of its total 2005 revenue) coming from long distance calling the company is worried.
Foreign and Chinese media have in the past reported that the Shenzhen branch of China Telecom started to blacklist users, block VoIP calls China Mobile Unicom and threaten to punish anyone caught attempting to use Skype to maneuver around imposed blocks. A China Mobile Unicom A China Mobile Unicom China Mobile Unicom All this was made to try to stop the sliding revenue in advance of the country's over 100 million internet users realizing available and free long distance PC based calling services were cheaper.
A China Mobile Unicom Following the earthquake in Sichuan on China Mobile Unicom May 12th, China’s major mobile phone networks China Unicom and China Mobile set up a special service that gave customers in affected areas extra mobile phone credit to ensure that people affected by the disaster did not run out of credit and could therefore contact love ones and call for help.
Anyone in Aba, China Mobile Unicom Chengdu, Deyang, Guangyuan and Mianyang on the China Mobile Shenzhou plan whose balance dropped below 50 yuan had 100 yuan added to there account between May 12th and May 31st. Customers of China Unicom had 50 yuan added to their accounts when their balance dropped below 50 yuan.
Anyone in Aba, China Mobile Unicom Chengdu, Deyang, Guangyuan and Mianyang on the China Mobile Shenzhou plan whose balance dropped below 50 yuan had 100 yuan added to there account between May 12th and May 31st. Customers of China Unicom had 50 yuan added to their accounts when their balance dropped below 50 yuan.
ndia has emerged as the fastest growing mobile market. A China Mobile Unicom Over 7 million new connections are added every month. Focus has so far been on the subscriber additions per month. As the telecom market reaches maturity stage, their valuations are getting eroded. Most analysis of the telecom sectors centers around MOU (Minutes of usage) per subscriber per month and the ARPM (Average Revenue Per Minute). Bharti Telecom has recently announced that the average revenue per minute which had fallen 5 per cent to 72 paise in the March 2008 quarter, fell further to just 66 paise in the quarter ended June 31, 2008, a drop of 8 %. However, the MOU (Minutes of usage) per subscriber China Mobile Unicom rose from 507 in the previous quarter to 537 in the quarter ended June 31, 2008. Every time a telco announces its results, it is given a thumbs-up or thumbs-down by the capital markets A China Mobile Unicom depending on whether its Minutes of usage per subscriber and subscriber additions are in the positive or negative. This method of stock valuation is, in my opinion, taking a very parochial view of the tremendous potential of the telecom sector.
I believe Indian telcos are positioning themselves well for changing trends. Bharti Telecom and RCOM are selling part of their stakes in the towers infrastructure or to spin off their towers infrastructure into a separate subsidiary, and thus realize China Mobile Unicom value for their shareholders. Nokia, the world’s largest maker of mobile phones, has been experiencing extraordinary rates of growth (recently reported 13 % year-on-year rise in earnings) thanks to its presence in emerging markets which has kept it relatively insulated from any western downturn. The current spread of global meltdown to the Asian continent is A China Mobile Unicom somewhat tapering off its growth targets though.
What is forgotten is that the global telecom sector is fast changing and the world’s biggest telecom companies are rushing to add capacity (even though they are located in matured markets) to add capacity on inter-continental routes, to meet escalating demand fuelled by consumers downloading bandwidth-hungry video content from YouTube, iTunes and other sites over broadband networks. Disruptive technologies that have begun to surface in the telecom sector will power rapid growth in this sector and result in significantly higher stock valuations, when the capital markets of the world finally recover and gather momentum.
I believe Indian telcos are positioning themselves well for changing trends. Bharti Telecom and RCOM are selling part of their stakes in the towers infrastructure or to spin off their towers infrastructure into a separate subsidiary, and thus realize China Mobile Unicom value for their shareholders. Nokia, the world’s largest maker of mobile phones, has been experiencing extraordinary rates of growth (recently reported 13 % year-on-year rise in earnings) thanks to its presence in emerging markets which has kept it relatively insulated from any western downturn. The current spread of global meltdown to the Asian continent is A China Mobile Unicom somewhat tapering off its growth targets though.
What is forgotten is that the global telecom sector is fast changing and the world’s biggest telecom companies are rushing to add capacity (even though they are located in matured markets) to add capacity on inter-continental routes, to meet escalating demand fuelled by consumers downloading bandwidth-hungry video content from YouTube, iTunes and other sites over broadband networks. Disruptive technologies that have begun to surface in the telecom sector will power rapid growth in this sector and result in significantly higher stock valuations, when the capital markets of the world finally recover and gather momentum.
