Sunday, August 26, 2012

China Mobile Needs Business Transformation Due to the Rise of ...

By Star Chang, posted Aug 26, 2012 at 6:40 PM, 20 views,

China Mobile Needs Business Transformation Due to the Rise of Mobile Internet
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Telecom operators in China are facing tremendous pressure as profits from services such as calls, text and voice messaging are being heavily eroded by the rising popularity of mobile internet services. China Mobile, one of the three main carriers in China, said its revenue dropped to a new low over the first half of this year. Its earnings before interests and taxes have decreased by 3 percent year-on-year. The growth of its voice and text message only increased slightly while its mobile data transmission surged by 17 percent compares to the same period last year. Revenue from its wireless internet service has replaced text messaging to become the third largest income source, amounting to 38 percent of total income in the first half of this year ?

China Mobile has set up new measures and business models such as establishing new channels, open up platforms, and create friendly user interfaces in response to the rise of mobile internet, and providing download services for digital music, e-books and payment services. The company also increased its subsidies for smartphones as the sector?s growth has contributed to its revenue from the mobile internet, which amounts to 101.6 yuan (US$15.9) average revenue per user per month, higher than the 63.81 yuan (US$9.9) of 2G mobile users. Frankly speaking, we are actually more interested in the development of China Mobile?s 4G network. Early this year, the company has unveiled their plan to widely deploy TD-LTE across the country. Chinese mobile user need a better mobile data transmission right now, since the country?s mobile internet speed is second slowest in the world. And the iPhone is currently unavailable on the influential network due to incompatibilities.

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The world?s largest wireless carrier needs a fundamental change to its mobile business.

SOURCE: YICAI.com (Chinese translated)
Photo credit: Bloomberg



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TAGS: China Tech, 2G, 3G, 4G, China Mobile, iPhone, TD-LTE, Telecom, wireless

Source: http://micgadget.com/29226/china-mobile-needs-business-transformation-due-to-the-rise-of-mobile-internet/

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