China Unicom Earnings Preview: 3G, 4G Adds, VAT In Focus

When the company releases its third quarter results, we expect its wireless business to continue to show strong growth on account of an expanding subscriber base and an improving 3G-4G mix. However, it is likely to be impacted by the company's comparatively lackluster performance in adding new wireless subscribers in Q3 2014 compared to the same period last year as well as the introduction of value added tax on telecom services by the government.