Show boosted by higher rev­enue from tele­coms ser­vices and de­mand for data

China Daily (Hong Kong) - - BUSINESS - By MA SI masi@chi­na­di­aly.com.cn

China Mo­bile Ltd, the world’s big­gest tele­com car­rier by sub­scribers, re­ported that its first-quar­ter net profit jumped 3.7 per­cent to 24.8 bil­lion yuan ($3.60 bil­lion), boosted by con­sumers’ grow­ing de­mand for data traf­fic and higher rev­enue from tele­com ser­vices.

The Beijing-based com­pany said that as more con­sumers up­grade to the 4G net­work, China Mo­bile’s data traf­fic jumped 101 per­cent from a year ear­lier.

The com­pany has more than 856 mil­lion users and 568 mil­lion of them are now 4G sub­scribers. It is com­pet­ing fiercely with two smaller ri­vals — China United Net­work Com­mu­ni­ca­tions Ltd and China Tele­com Cor­po­ra­tion Ltd — which have signed a deal to share 4G re­sources.

China Mo­bile’s Q1 rev­enue also rose 3.7 per­cent to 184 bil­lion yuan, with tele­com ser­vices rev­enue surg­ing 6.1 per­cent to 160.9 bil­lion yuan.

Xiang Li­gang, an an­a­lyst and founder of the tele­com in­dus­try web­site cc­time.com, said that China Mo­bile was in­creas­ingly re­ly­ing on data traf­fic to boost rev­enue, as its

Xiang Li­gang, an­a­lyst and founder of cc­time.com

voice calls and text ser­vices were be­ing pres­sured by com­pe­ti­tion from free in­ter­net-based mes­sag­ing ser­vices such as Ten­cent Hold­ings Ltd’s WeChat.

“To en­sure sus­tain­able growth, China Mo­bile needs to boost op­er­at­ing ef­fi­ciency, given that it is un­der mount­ing pres­sure from the gov­ern­ment to cut charges for data traf­fic,” Xiang said, adding the prob­lem was chal­leng­ing the three tele­com car­ri­ers.

They have al­ready rolled out plans that al­low users to carry over un­used data ca­pac­ity from one

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