HomeChina Stock News China Netcom to continue customer-churn in 2008, researcher
China Netcom to continue customer-churn in 2008, researcher
Written by Administrator
Friday, 04 January 2008
BEIJING, Jan. 3 (InfoChina) – The PHS users and fixed phone users of China Netcom (0906.HK; CN.NYSE) will drop further in 2008, due to the promotion of the FMS (fixed-to-mobile substitution) in China, predicted China Merchants Securities (CMS).
In the first three quarters of 2007, China Netcom’s user number rose slightly from 113.97 million to 114.48 million. But the growth mainly derived from enterprise customers, and the number of PHS users and fixed phone users began to fall respectively in the second quarter and in the third quarter.
Though China Netcom reported a good performance in the broadband service sector and the ICT service sector, they cannot alleviate the loss from the poor performance in the speaking service sector.
CMS has an expectation of the cooperation between China Netcom and Telefonica, saying the Spain-based counterpart will be a strong partner of China Netcom after China Netcom receives a mobile license. It said Telefonica runs fixed network and mobile network simultaneously in the world, and can be an example of China Netcom.(Edited by Li Xiaoyu,
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