Market bets on mobile licences for fixed-line duo
Shares of the two mainland fixed-line operators listed in Hong Kong were among the top gainers yesterday as investors continued to bet on the possible issuance of mobile licences to the two for further growth, market watchers said.
China Telecom Corp and China Netcom Group Corp shares once gained more than 10 per cent despite both companies losing subscribers to mobile operators last month. China Telecom finished the day with an 8.07 per cent rise to HK$5.89 while Netcom closed 11.11 per cent higher at HK$23.50.
The gains were driven mainly by reports that Beijing would soon issue mobile licences for fixed-line operators which would benefit their sluggish performances.
Highlighting competition from mobile operators offering free incoming call packages, China Telecom yesterday said it lost 880,000 fixed-line subscribers including users of the wireless fixed service Xiaolingtong, last month.
'The decrease in new users is also due to tight control in signing up low-margin subscribers,' China Telecom said in its website yesterday.