China’s number two mobile phone carrier, China Unicom has announced a profit decline from the previous quarter and has said the trend could continue due to expensive 3G network building and intensified competition reports Reuters.

China Unicom is constructing their 3G network using the world’s most standard WCDMA; however they are struggling to integrate new business after the industry shake-up last year which saw it combine to take on its present from.

The acquisition of the iPhone will help in China Unicom’s 3G launch, but the iconic handset is priced expensively and may need further subsidising. Furthermore, China Mobile, China’s number one carrier along with China Telecom have both reported disappointing earnings.