Carrier hurt by building out 3G network

The iPhone has not helped to rescue China Unicom's finances, says the Wall Street Journal. The carrier's net profit fell 73 percent in the last quarter, a setback mainly attributed to the costs of building out a new 3G network. The company only managed to record 4.1 million 3G subscribers towards the end of February; this leaves it behind both China Mobile and China Telecom.

Unicom's 3G adoption has in fact been slowing in recent months, dropping from 920,000 in December to 470,000 in February. Its network should theoretically be an advantage, as it is the only Chinese carrier to support not only the iPhone but the global HSPA 3G standard. The company still hopes to add 10 million 3G subscribers in 2010, although in reality this may be dependent on several factors.

The company must for example continue to expand its 3G network, which will allow it to reach more people. The Unicom iPhone also lacks Wi-Fi at present, giving it a feature deficit next to models in neighboring countries. Those countries are moreover selling the device at lower prices, which has helped to drive a large gray market.

by MacNN Staff