China Mobile to invest 50% more on 4G
By Zhu Shenshen |
March 15, 2013, Friday
|
Print Edition
Print Edition
CHINA Mobile Ltd will boost capital spending by 50 percent this year on building the next-generation 4G network as it seeks to regain lost market share from its two rivals.
However its huge user base of 710 million by the end of December, which makes China Mobile the world's biggest telco, helped the company post a better-than-expected fourth quarter result.
Its capital spending may rise to 190.2 billion yuan (US$30.2 billion) this year, up 49 percent year on year, according to China Mobile yesterday.
A major investment will be pumped into the 4G network based on TD-LTE technology. It provides 20 to 50 times faster Internet access speed for mobile phone users compared with the 3G technology now.
After building a trial 4G network in 15 cities in 2012, China Mobile said last month that it would expand 4G network to 100 cities this year with 200,000 base stations, covering 500 million people.
"It's a nice opportunity for China Mobile to commercialize and promote 4G technology," said Xi Guohua, chairman of China Mobile.
In the fourth quarter, China Mobile's net profit rose 6.1 percent to 36 billion yuan, beating analyst hopes of 32.3 billion yuan in a Bloomberg News survey.
For 2012, China Mobile's net profit rose 2.7 percent year on year to129.3 billion yuan on an annual 6.1 percent climb in revenue to 560.4 billion yuan.
The telco's income from wireless data last year surged 54 percent, accounting for 12 percent of total revenue, according to Xi.
China Unicom and China Telecom have been eating into China Mobile's market share. Since 3G licenses were issued in 2009, China Mobile has seen its market advantages chipped away because it adopts the home-developed TD-SCDMA network that is less commercially mature compared with the other two Western standards adopted by China Telecom and China Unicom.
However its huge user base of 710 million by the end of December, which makes China Mobile the world's biggest telco, helped the company post a better-than-expected fourth quarter result.
Its capital spending may rise to 190.2 billion yuan (US$30.2 billion) this year, up 49 percent year on year, according to China Mobile yesterday.
A major investment will be pumped into the 4G network based on TD-LTE technology. It provides 20 to 50 times faster Internet access speed for mobile phone users compared with the 3G technology now.
After building a trial 4G network in 15 cities in 2012, China Mobile said last month that it would expand 4G network to 100 cities this year with 200,000 base stations, covering 500 million people.
"It's a nice opportunity for China Mobile to commercialize and promote 4G technology," said Xi Guohua, chairman of China Mobile.
In the fourth quarter, China Mobile's net profit rose 6.1 percent to 36 billion yuan, beating analyst hopes of 32.3 billion yuan in a Bloomberg News survey.
For 2012, China Mobile's net profit rose 2.7 percent year on year to129.3 billion yuan on an annual 6.1 percent climb in revenue to 560.4 billion yuan.
The telco's income from wireless data last year surged 54 percent, accounting for 12 percent of total revenue, according to Xi.
China Unicom and China Telecom have been eating into China Mobile's market share. Since 3G licenses were issued in 2009, China Mobile has seen its market advantages chipped away because it adopts the home-developed TD-SCDMA network that is less commercially mature compared with the other two Western standards adopted by China Telecom and China Unicom.
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