China Mobile profits up on higher Internet use

Profits in the first half rose as more customers used their handsets to connect to the Internet

China Mobile, the world's largest mobile carrier, reported net profits rising by 6.3 percent for the first half of 2011, as the company had more customers surfing the Internet with its handsets.

The Chinese company said on Thursday that profits for the period reached 61.3 billion yuan (US$9.6 billion). Its revenue was 250 billion yuan, a year-on-year increase of 8.8 percent.

The carrier now has 616 million customers, 31.7 million of which were added during the half-year. The user growth represents an increase of 3.2 percent from the same period last year. China Mobile's 3G (third-generation) user base, however, continues to remain small at 35 million users.

The carrier faces stiff competition from rivals China Unicom and China Telecom, which together have close to 290 million mobile phone users. The companies are all vying to sell more smartphones to get more customers to sign up to use their 3G networks.

Although China Mobile makes most of its money through voice calls, the company's value-added business has risen to 32.2 percent of total revenues.

Driving growth in its value-added business is an increase in the number of users connecting to the Internet and downloading data with their phones. The carrier has its own app store which saw 260 million downloads in the first half of 2011. It helped grow China Mobile's revenue from its wireless data business by 42.8 percent year-on-year.

China Mobile is also involved in deploying faster 4G networks in China. The country is currently testing 4G networks using the LTE TDD (Long-Term Evolution Time-Division Duplex) standard in six cities.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuestelecommunicationtelephony3gfinancial results4gchina mobile

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?