China Unicom (0762.HKG) saw first-half net profit jump 26% from a year earlier, Reuters reported. China Unicom, the second-largest wireless carrier after China Mobile (0941.HKG), has benefited from favorable regulatory policies as China’s government has continued to reform state-controlled companies by promoting competition. China has reduced the interconnection fees that smaller carriers pay to connect to China Mobile’s network starting this year. Analysts said the savings from the new interconnection policy would help fund China Unicom’s and China Telecom’s (CHA.NYSE) network upgrades and marketing efforts to further increase their mobile users this year.
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