China Mobile continues to outpace Unicom

20 Oct 2006

The world’s largest mobile operator by subscribers, China Mobile, is expected to post a 27% rise in third quarter net profit later today. According to the average of four forecasts taken from analysts surveyed by Reuters, the cellco should post net earnings of RMB16.3 billion (USD2.1 billion) for the third quarter, up from RMB12.8 billion in the corresponding period last year. Operationally speaking, in the first eight months of 2006 China Mobile claimed almost 80% of net additions to further extend its lead over rival China Unicom, while in July and August alone the state-controlled operator added over 8.9 million users to take its total subscriber base to 282.7 million. By contrast, China Unicom had 137.3 million customers at the end of August, and 138.5 million one month later. Commenting on China Mobile’s success, CSC Securities analyst Michael Chen said: ‘China Mobile is not only consolidating its dominant position in the mature coastal market, but gaining market share in the western hinterland through faster and better layout expansion than Unicom.’

China, China Mobile, China Unicom