3G drives China Mobile Capex to reach $9.3 billion in first half 2013

Telecom major China Mobile Capex (capital expenditure) reached $9.3 billion (RMB 57 billion) in the first half of 2013.

Its Capex represents 20 percent of revenue from telecom services.

China Mobile’s first half revenue rose 10.4 percent to $49.5 billion (RMB 303 billion). 3G contributed to the significant increase in revenue. Its total user base grew 8.4 percent to 740 million.

Telecom service revenue improved 6.8 percent to RMB 284.7 billion.

China Mobile profit rose 1.5 percent to RMB 63.1 billion.

Revenue from data business rose 25.5 percent to RMB 95.4 billion.

Wireless data revenue – driven by 3G — increased 62.2 percent to RMB 47.4 billion.

Wireless traffic rose 129 percent in the first half of 2013.

China Mobile strategy

3G drives China Mobile Capex to reach $9.3 billion in first half

As per its long term strategy, China Mobile improved network quality and voice quality of its 2G network. 3G (TD-SCDMA) network quality also improved.

The Internet traffic on-net rate rose to 85 percent while the WLAN authentication success rate continued to improve.

To spur the ongoing transformation of the content and model of services, China Mobile improved customer service, optimized service procedures and enhanced customer retention.

China Mobile has strengthened the centralized management of Internet complaints and put Internet Service Center in Luoyang into operation. It also enhanced the management of disreputable information to protect customer rights.

China Mobile controlled 2G network investment while maintaining network quality.

The largest telecom operator in the world — based on user base — advanced its 3G network construction. The number of 3G base stations reaches 361,000 and network utilization rate reaches 25.0 percent.

WLAN access points reach 4.10 million.

China Mobile recently kicked off TD-LTE deployment. It will set up over 200,000 base stations to provide 4G services in main metropolitan areas in 100 major cities.

In the first half of 2013, China Mobile sold approximately 66 million TD-SCDMA mobile phones, representing an increase by approximately 1.5 times compared with the same period last year.

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