Increased competition in China’s mobile phone sector is squeezing domestic carriers’ profits, the Financial Times reported. China Mobile’s net income for the quarter ending September 30 increased 2.8% to US$4.19 billion, reversing a slight drop recorded in the second quarter but continuing the sharp slowdown in overall profitability from the first half. China Telecom saw its third-quarter net earnings drop 48% from a year earlier to US$350.10 million, a sharper fall than in the first half of 2009. China Telecom blamed its weaker profits on declining fixed line services. Chima Mobile did not give a reason for its nearly flat growth. The slowdown in profit growth comes at a time when China Mobile, China Telecom and China Unicom roll out their third generation mobile phone services. All three carriers are in a fierce battle for subscribers after a government-led industry restructuring in 2008.