China Unicom 2011 Profit Misses Estimates on 3G User Cost
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China Unicom (Hong Kong) Ltd., the nation’s second-largest mobile-phone company, said it faces rising costs to expand coverage this year as users on its high-speed network increase.
The company will boost capital spending by 30 percent to 100 billion yuan ($16 billion) in 2012, Chief Executive Officer Chang Xiaobing said at a briefing in Hong Kong yesterday. Profit margins “will be under pressure” as marketing and network costs rise, Chief Financial Officer Li Fushen said.