Feeds

China Mobile becomes world's biggest mobe operator

Didn't need any iPhone deal either

High performance access to file storage

China Mobile's half-year profits topped $9.6bn, making it the largest mobile operator in the world by customers and profits, and six times bigger than the nearest local competition.

That $9.6bn profit is based on revenue of almost $40bn, stomping all over the local competition and topping Vodafone's annual figure of $18.82bn. The local competition is compared with this pretty graph at Penn Olson, which shows that China Telecom only managed one-sixth of its rival's takings, while China Unicom lagged well behind with a profit of only $406m despite (or because of) having an exclusive on Apple's iPhone.

That exclusive is costing China Unicom a huge amount in handset subsidies. Unicom is the only company of the three Chinese operators to see a decline in profits in the first half of 2011, and that's despite increasing revenues more than 22 per cent. It seems much of the cash, $478m to be precise, went on subsidising 3G handsets – most of which will have been iPhones.

China Mobile makes about £6.68 in revenue from each user each month (ARPU), which compares badly to Vodafone UK, which rakes in an average of £21.70 from every prepaid customer (£37.10 from those with contracts). But if you compare this with Vodafone India's ARPU of £2.34, it looks far more healthy.

China's mobile industry is still expanding as penetration is still some way off saturation. Around 900 million mobile subscriptions serve a population around 1.3 billion, so there's still room for expansion within China.

Not that the operators are limiting their horizons to their home country. China Telecom has been talking about launching a UK MVNO aimed at Chinese people living abroad (400,000 of them in the UK, according to the company) and recently expanded its European operations to look specifically at acquiring Western companies.

China Mobile is state-owned, so its profits go to the Chinese government. And its profits are unlikely to fall any time soon, especially with Tim Cook (now Apple's CEO) seen dropping by for a visit to lend weight to the rumours that Unicom's exclusive won't last long and that China Mobile will be getting the next iPhone for its 4G network.

Competition has certainly driven the Chinese mobile industry, but it is not clear how, or if, that competition can be maintained with one player dominating the market to such a large extent. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.