China Mobile has started generating significant business and customers from its non-core areas.
China Mobile posted operating revenue of RMB391.8 billion (+2.9 percent) and services revenue of RMB356.1 billion (+5.5 percent) in the first half of 2018.
EBITDA of China Mobile grew 3.7 percent to RMB145.9 billion, while profit rose by 4.7 percent to RMB65.6 billion.
The number of connections has increased to 1.425 billion including 906 million mobile users, 135 million wireline broadband users and 384 million IoT (Internet of Things) connections in H1 2018.
“Machine-to-machine connections have already outnumbered human-to-human connections,” China Mobile, the world’s largest telecom operator based on the number of subscribers, said.
China Mobile added 190,000 4G base stations in H1 to ensure adequate network capacity while improving the indoor coverage in both urban and rural areas. China Mobile did not reveal specific Capex during the first six months of the year.
China Mobile added 18.61 million mobile customers in H1 of 2018, driving the total number of mobile customers to 900 million plus including 680 million 4G customers.
China Mobile added 27.32 million 4G customers in the first half of 2018, and 4G penetration rate of its mobile customers has reached 74.7 percent.
The average handset data traffic per user per month, or DOU, of 4G customers exceeded 3GB while the total handset data traffic increased by 153 percent. Data traffic revenue maintained a double-digit growth rate.
“We are keen to generate returns on our investments and will plan our future investments on 5G taking into consideration the level of maturity of the industry and business models that emerge,” China Mobile Chairman Shang Bing said.
China Mobile added 18.80 million household broadband customers, grabbing 57 percent of the total number of net customer additions in the industry. The total number of household broadband customers reached 128 million, China Mobile said.
China Mobile said 42.5 percent of customers use broadband with bandwidth of 100Mbps or above, up by 20.5 percentage points from the end of 2017. China Mobile’s home broadband revenue reached RMB21 billion (+49.1 percent). Home broadband blended ARPU rose 7.3 percent to RMB34.8.
China Mobile has more than 6.7 million corporate customers and achieved 21.2 percent rise in revenue, with a market share of more than 38 percent. Revenue from Internet dedicated lines and IDC (Internet Data Centre) achieved 26.9 percent and 56.8 percent growth, respectively.
China Mobile’s IoT business has added 155 million IoT connections. The total number of IoT smart connections has reached 384 million and revenue from IoT business rose 47.6 percent.
China Mobile’s digital media MIGU introduced FIFA World Cup video content and posted 4.3 billion views on the FIFA World Cup matches. Mobile payment business has exceeded RMB1.36 trillion in transaction value.