According to a report published today in the Wall Street Journal: "China Mobile Limited nine-month net profit fell 1.9%, reflecting stiff competition and the carrier's higher network investments and handset subsidies.
The world's largest mobile carrier by subscribers has been racing with China Telecom Corp. and ChinaUnicom Ltd. to boost revenue per user by adding customers to its third-generation mobile services, which offer faster data speeds at a higher price than 2G services. But China Mobile's dependence on homegrown technology has put it at a disadvantage by limiting its access to popular 3G smartphones.
The world's largest mobile carrier by subscribers has been racing with China Telecom Corp. and ChinaUnicom Ltd. to boost revenue per user by adding customers to its third-generation mobile services, which offer faster data speeds at a higher price than 2G services. But China Mobile's dependence on homegrown technology has put it at a disadvantage by limiting its access to popular 3G smartphones.
To maintain its dominant market share, China Mobile is plowing almost $7 billion this year into building a speedier 4G network. But the increased network investments and higher handset subsidies have raised concerns among investors over profitability.
The expected introduction of the iPhone to China Mobile's lineup could help ease those concerns. Chinese regulators last month gave Apple Inc.the final license necessary for the iPhone to run on China Mobile's network. China Unicom and China Telecom have sold iPhones for several years.
China Mobile's net profit for the nine months through September was 91.5 billion yuan ($15 billion), down from 93.31 billion yuan a year earlier.
China Mobile has the most 3G users in China, but a surge in the use of some smartphone applications has undercut revenue from text and voice services.
Analysts said China Mobile is unlikely to offer the iPhone until it receives permission for its 4G network, which would offer a better user experience. China's telecommunications regulator is expected to issue licenses to China Mobile and its smaller rivals for the next generation of high-speed mobile technology by year-end".
