China Unicom to slow overall investment, focus on 3G

China Unicom, China's No. 2 mobile carrier, said on Saturday its total investments will decrease this year as it scales back spending on areas like broadband and focuses on its new 3G wireless network.                                           

"This year our overall investments will clearly decrease from last year's levels," Unicom Chairman Chang Xiaobing told a media briefing in Beijing on the sidelines of the Chinese People's Political Consultative Conference.                                           

"But 3G remains our investment priority and we will not slow the pace of 3G development," he said. Unicom and its two main rivals, China Mobile and China Telecom , all began building third-generation (3G) wireless networks last year following an industry restructuring the reduced the number of players from four to the current three.                                           

The industry spent a collective $21 billion on 3G technology last year, with 3G subscribers reaching more than 10 million by the end of the year, according to government data. 

But reflecting the state of intense competition following the revamp, the ministry of industry and information technology said late last year it expects business volume for the industry should grow about 12 percent this year, but revenue is only expected to grow by a more modest 4.5%.