Wireless Market Share Decline (-10%) China Telecom has historically done well in expanding its subscriber base in the Chinese wireless market. It increased its market share from just over 4% in 2008 to 15% by the end of December 2013. However, the carrier struggled to keep up with China Mobile's aggressive user additions last year and its market share actually declined by 65 basis points y-o-y by the end of December 2014. It showed a marked improvement in its performance after the government granted trial FDD-LTE licenses last June, and this momentum helped the carrier improve its market share by 25 basis points in the first five months this year. However, the company may not be able to sustain this increase considering that China Unicom has yet to fully launch its 4G services. If China Mobile continues to improve share and China Unicom reverses its declining trend, China Telecom may not be able to achieve the growth that we expect for the company in our current forecasts.