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Profits Soar as China Mobile Prepares to Take on the World
(22 Apr 2008, BWCS Staff)China Mobile, the world's largest mobile phone carrier by subscribers, has reported a surge in first quarter profits. In contrast the country's main fixed line operator, China Telecom, has almost flat earnings for the first three months of this year. China Mobile said that profits for the three months ending 31st March soared by 37.2% compared to the same period last year. At the same time its subscriber base grew by a more modest 6% to 392 million customers.
While China Mobile could boast net profit of Yuan 24.1 billion (US$3.4 billion) for the first quarter of this year, its fixed line counterpart, China Telecom only managed to nudge earnings up by 0.5% to Yuan6.2 billion (US$0.88 billion). As mobile grows increasingly dominant in China the leading mobile carrier has begun to look for fresh pastures.
Last month the giant carrier appeared to throw down a gauntlet to the European mobile industry by opening a brand new international office in London. The new HQ, which forms part of the operator's planned global expansion, will oversee its moves into European, Middle Eastern and African markets. In February of this year, company CEO, Wang Jianzhou, said the giant telco plans to take advantage of falling share prices in Asian stock markets to pick up stakes in foreign companies, or even seize control, at relatively low prices.
Earlier this month China Mobile, began stamping its mark on its first overseas acquisition when it announced the rebranding of Paktel, its Pakistan subsidiary, as Zong. The Chinese company bought Paktel from Millicom in early 2007. It has now launched a major advertising campaign for Zong; with the catch-phrase 'Say it all'. According to the Pakistan Telecommunication Authority, Zong (Paktel) had 2.145 million customers at the end of February this year.
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