Thursday, August 11, 2016

China Mobile Hits 51% 4G Adoption - Data Traffic Explodes

As of mid-year 2016, China Mobile was serving 837 million customers (up 2.4% YoY), of whom 51% were on 4G LTE. Total handset data traffic for the first half of the year reached 2,327.9 PB, up 134%.

In its mid-year financial report, China Mobile cited steady progress in the 4G, data traffic, wireline broadband and digital services business lines.  Some highlights:

  • Operating revenue of RMB370.4 billion, up by 7.1%, of which revenue from telecommunications services was RMB325.4 billion, up by 6.9%
  • EBITDA was RMB134.4 billion, up by 2.9%
  • Profit attributable to equity shareholders was RMB60.6 billion, up by 5.6%
  • 1.32 million 4G base stations online
  • Nearly 430 million 4G customers
  • Wireless data traffic revenue has for the first time exceeded traditional business and is now the biggest revenue source
  • Wireline broadband customers increased by 10.81 million and the total number of customers reaching 65.84 million
  • Handset data traffic increased by 133.9% year-on-year, while wireless data traffic revenue increased by 39.7%

Mr. Shang Bing, Chairman of China Mobile, stated: “Our current strategy has the dual aspects of consolidation and future growth. For consolidation, we will be further building on our 4G advantages and increasing our 4G customers proportion. Our high-end approach with regards to wireline broadband will be maintained. We will challenge ourselves to obtain a one-third market share in the ICT business through expansion of our corporate customer base. In terms of future growth, we will take a longer-term perspective, looking towards our digital services segment and increasing the revenue by understanding the important role that this business line will play for the Company in the future. As we have always done, we will take a level-headed approach to market competition. Our ultimate goal is to strike a balance between the interests of our customers, our shareholders and the public, as well as regulatory requirements when we are striving to meet our short-term goals and formulating long-term plans."