China's telecom carriers' CAPEX to reach RMB 205.3 billion in 2006

Analysis: Chinese telecommunication operators will increase capital expenditure on GSM networks, new business/technology development, and IT information systems/support systems in 2006, while decrease expenditure on CDMA and PHS. China Telecom's capital expenditure will reach RMB 55 billion (excluding 3G CAPEX), decreasing 6.8% compared with the year 2005. China Netcom's CAPEX in 2006 will reach RMB 28.6 billion (excluding 3G CAPEX), increasing 2% YoY. China Unicom's CAPEX in 2006 will reach RMB 35.1 billion, decreasing 12.5% over the year 2005. China Mobile's CAPEX in 2006 will reach RMB 79.4 billion (excluding 3G CAPEX), increasing 16% YoY. The CAPEX forecast of China Mobile is smaller than China Mobile's own announcement of RMB 83.3 billion CAPEX. China Mobile's own CAPEX forecast includes implicit 3G expenditure. As 3G expectations increase, China Telecom and China Netcom will reduce investments on PHS. Analysys International is expecting China Telecom to reduce PHS expenditure from RMB 8.3 billion in 2005 to RMB 3.1 billion in 2006, decreasing 62% YoY. China Netcom's PHS expenditure is expected to reach RMB 3.5 billion in 2006, decreasing 30% YoY. China's telecom carriers' CAPEX to reach RMB 205.3 billion in 2006 expenditure on GSM networks Publ 20060427