China Unicom Boosts 3G Phone Target - Analyst Blog
April 02 2013 - 11:30AM
Zacks
Beijing-based China Unicom
Hong Kong Limited (CHU) has set a target of selling 90
million units of 3G smartphones in 2013, up nearly 50%. Management
stated that all the 3G smartphones offered by the company will
support high-speed mobile network and provide faster download
speed.
In Aug 2009, China Unicom launched 3G services in China along with
China Mobile Limited (CHL) and China
Telecom Corp. (CHA). Initially, China Unicom offered the
service through WCDMA technology but currently, is upgrading to the
faster HSPA+ network that generates a higher download speed of up
to 21 Mbps. The company’s HSPA+ coverage spans 330 cities.
Last week, China Unicom – the nation’s second biggest telecom
carrier by subscribers – unveiled its latest offering – the Nokia
Lumia 520 with a price tag of RMB 1,300 or $206. This 3G handset is
compatible with the company's high-speed HSPA+ network, signaling
that consumers can now avail devices that make net surfing easier
and quicker.
China Unicom is making every possible move to make its 3G network
the fastest in the country. The company is consistently teaming up
with international big brands like Nokia
Corporation (NOK) to expand its 3G business that stands as
the prime contributor to its revenue growth.
In fiscal 2012, 3G business telecommunication service revenues were
RMB 59.80 billion ($9.47 billion), up 82.6% year over year and
accounted for 28.5% of telecommunication service revenues. The
company’s total 3G subscriber base reached 76.456 million, with
36.437 million new customers added, last year.
Currently, China Unicom has a Zacks Rank #3 (Hold). We believe that
the company will continue to make significant progress in expanding
economies of scale in 3G, broadband and other businesses that will
likely improve its overall revenue and profitability. The company
is also poised to benefit from the expansion of fiber optic service
in the fixed-line broadband business.
CHINA TELCM-ADR (CHA): Free Stock Analysis Report
CHINA MOBLE-ADR (CHL): Free Stock Analysis Report
CHINA UNICOM (CHU): Free Stock Analysis Report
NOKIA CP-ADR A (NOK): Free Stock Analysis Report
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