China Unicom: cancellation of connection fees to decrease RMB70mln in 2nd half

China Unicom (0762) announced that the company has been notified by relevant regulatory authorities to cancel mobile telephone network connection fees and local telephony trunk installation fees with effect on July 1.

The company said in the first five months income of the company from mobile telephone network connection fees was about RMB190mln and RMB8mln is from local telephony trunk installation. It is estimated that the cancellation of the charges will make the company loss RMB80mln in the 2nd half of the year. As the company's expenses for the 2nd half will be decreased by about RMB10mln, the profits of the company in the 2nd half of the year may be decreased by about RMB70mln.

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