China Mobile subscribers reach 274 million

HONG KONG, Aug. 17 (Xinhua) — China Mobile Communications Corporation (China Mobile) announced on Thursday that the number of the company’s subscribers increased by 25.77 million in the first half of 2006, bringing the total number to 274 million by June 30.

Wang Jianzhou, president of China Mobile, said at a press conference on Thursday that the company’s net profit in the first half of 2006 reached 30.17 billion yuan (3.78 billion U.S. dollars) , up 25.5 percent over last year’s same period. He said the interim dividend declared per share is 0.62 HK dollar, together with a special dividend of 0.09 HK dollar. Looking ahead, Wang said, the company will promote development of mobile telephone in rural areas and value added service, and make preparations for the 3G market planning and operation. He said the company will strengthen marketing and try to bring more long-term profit to its investors.

China Mobile is the No.2 stock of the Hang Seng Index of the Hong Kong stock market in terms of market capitalization.

Source- http://news.xinhuanet.com

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China Mobile, Larger Than Vodafone, May Say Net Rose (Update2)

Aug. 16 (Bloomberg) — China Mobile Ltd., the world’s largest cellular operator by market value, may report a 23 percent gain in second-quarter profit after adding a record number of subscribers.

The Beijing-based company, which overtook Vodafone Group Plc as the world’s largest mobile company by market capitalization last month, will report net income rose to 15.7 billion yuan ($2 billion) from 12.8 billion yuan a year earlier, according to the median estimate of six analysts in a Bloomberg survey. China Mobile is scheduled to report earnings tomorrow after the 4 p.m.market close in
Hong Kong.

Chief Executive Wang Jianzhou raised revenue by offering a wider range of wireless phone services such as movie and video downloads and targeting the more than 900 million people living in
China’s rural areas. The mobile operator added 13.1 million users in the second quarter, gaining a record number for three straight months to June.

“With the continued growth of subscribers and strong growth of data revenue,” earnings will keep rising, said Mandy Chan, who helps manage $1 billion at ABN Amro Asset Management Ltd. in Hong Kong, including China Mobile shares.

China Mobile attracted users after it received approval from the telecommunication regulator to cut rates and offer cheaper monthly packages for cell-phone users in
Beijingstarting May. The operator also reduced international roaming charges in the provinces of
Sichuanand
Zhejiang.

The phone operator is expected to report half-year profit rose to 30.2 billion yuan from 24 billion yuan a year earlier, analysts said.

Share Price China Mobile’s market capitalization on July 11 was $132 billion, compared with Newbury, England-based Vodafone’s $110 billion. The Chinese company’s shares have risen 38 percent this year, compared with a 23 percent decline in Vodafone stock.

“The share price reflects the market’s view of the prospects of the companies in the future,” Francis Cheung, an analyst at CLSA Ltd., said. “There’s more growth potential in
Chinathan in
Europe, where the market is more mature.” China Mobile, which lags behind Vodafone and
Japan’s NTT Docomo Inc. in sales, may say second-quarter revenue rose to 69.4 billion from 59.6 billion yuan a year earlier.

The company, which offers global system for mobile communications, or GSM, services, gained 25.8 million subscribers in the first six months of the year for a total of 273.8 million, about two-thirds of the nation’s mobile-phone users. That’s more than Vodafone’s 186.8 million users and Docomo’s 51.9 million combined by the end of July.

User Revenue China Unicom Ltd., the country’s second-largest mobile operator, offers services using both the GSM and code division multiple access standards. Unicom had a total of 135.1 million users at the end of June. China Mobile’s average revenue per customer, or ARPU, an industry measure of the size of a phone bill, probably remained unchanged in the second quarter from a year earlier, and up from the previous quarter, analysts said.

We expect China Mobile’s ARPU to be driven by higher usage and wireless data contribution,” Kelvin Ho, an analyst at Nomura International (
Hong Kong) Ltd. said. Ho estimates China Mobile’s ARPU will be about 90 yuan in the second quarter, unchanged from a year earlier, and up from 86 yuan in the previous quarter. Usage per subscriber probably rose 10.8 percent from a year earlier to 363 minutes per month. Chief Executive Wang, 57, is boosting revenue from new businesses such as short message services, ringtone downloads and wireless services such as emails and games.

Data Services New businesses from such wireless data services may account for 23 percent of revenue in the first six months, compared with 19.7 percent a year earlier, Ho said. Competition also eased as fixed-line phone network operators China Telecom Corp. and China Network Communications Group Corp., slowed promotions of a city-wide cordless service called Little Smart, which has cheaper rates than for cellular calls, as they prepare for the government’s issuing of high-speed wireless licenses.
Chinahasn’t set a timetable for granting licenses for 3G services, which allow subscribers to video conference and download movies faster on their handsets. The Ministry of Information Industry on Jan. 20 said it has adopted the locally developed time division synchronous code division multiple access standard as one of the so-called third- generation services. “A 3G license could be further delayed into second half 2007, which implies the 2007 could be another safe year for China Mobile, and the company could still deliver stellar results until the beginning of 2008,” Wang Jinjin, an analyst at UBS Securities Co. said in a report. China Mobile shares rose 1.5 percent to HK$52.10 as of middayin
Hong Kong, after gaining as much as 1.7 percent earlier.

Source- http://www.bloomberg.com

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China Mobile looking for opportunities to tap emerging markets

As the dominant local company, China Mobile Communications Corp is seriously seeking opportunities to tap emerging markets worldwide, said the boss of the world’s top cellular carrier.

“If we finally make our mind up to go abroad, we will concentrate on emerging and developing markets, such as in

Asia
,
Africa
or
Latin America
,” said Wang Jianzhou, president of China Mobile.

He ruled out the possibility of squeezing into the packed European and North American markets, where the penetration rate of cellular phones is already high.

Wang refused to disclose more details of the plan, such as a timetable, which countries may be involved and who were potential partners.

In July China Mobile reportedly entered a failed bid for Luxembourg-based Millicom, which has networks in 16 emerging markets including

Latin America
and
Africa
. The company has never confirmed the bid.

According to Wang, however, China Mobile has never stopped weighing up the pros and cons of the international market. There have always been different views within the company on whether to expand overseas.

Those who oppose the potential expansion argue that it is risky and besides, vast rural areas of

China

remain untapped and offer great potential for further growth. Why bother to take risks abroad?

“The reason China Mobile should start forming such plans is to secure both present and future profitability opportunities,” said Wang.

Moreover, if China Mobile can enlarge its size and business scale, the firm can further cut operation costs, he added.

Wang said that as the world’s largest cellular operator by value, China Mobile is experienced in setting up infrastructures and providing wireless communication services for areas and regions with harsh natural conditions, another reason why the company would be comfortable tapping less developed markets and regions.

China Mobile Hong Kong acquired

Hong Kong
‘s fourth-largest mobile operator China Resources Peoples Telephone early this year, and has given mobile service access to some unmanned countryside parks and areas in the special administrative region, to meet demands from tourists.

Yang Yuanqing, chairman of the Lenovo Group, advised that Chinese companies’ international business expansion should be firmly backed by solid business growth in the domestic market. As

China

‘s top personal computer (PC) maker, Lenovo bought out IBM’s PC division two years ago.

China Mobile’s mobile subscribers totalled 274 million by the first half this year, with net profit reaching 30.17 billion yuan (US$3.78 billion).

The cellular carrier will further expand the capacity of its second-generation (2G) networks to cater for surging local demand. “Although the 3G era is coming, we are still attracting 4 million new 2G users per month. Therefore, we will continue expanding our 2G mobile capacity to develop the local market,” said Wang.

Source- http://english.people.com.cn

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Hong Kong shares end morning higher; China Mobile leads

HONG KONG (XFN-ASIA) – Share prices finished the morning session higher, in line with Wall Street’s gains on Friday after positive US August jobs data, dealers said.

Strong buying interest in China Mobile, a rally on the Tokyo market and a drop in oil prices back below the 70 usd a barrel level provided additional support, they said.

The Hang Seng index ended the morning up 95.76 points or 0.55 pct at 17,519.48, off a low of 17,480.04 and high of 17,538.59.

Turnover was 15.66 bln hkd.

‘The August jobs and other data in the US were favorable on the whole… and raised hopes that the Fed will keep interest rates steady,’ said Matthew Kwok, head of research at Tanrich Securities, referring to the US Federal Reserve.

Wall Street’s gains following the data encouraged investors across the region, including Hong Kong, he said.

‘The drop in oil prices also helped eased worries on inflation and made investors more confident that a new rate increase will not happen anytime soon. The easing of these worries explain the gains of rate-sensitive property and banking counters,’ Kwok said.
The property sub-index gained 86.44 points or 0.41 pct at 21,077.08, extending Friday’s 0.59 pct gain.

Cheung Kong was up 0.70 hkd or 0.81 pct at 87.25, Henderson Land up 0.15 hkd or 0.34 pct at 44.10, Sun Hung Kai Properties up 0.30 hkd or 0.35 pct at 85.40, Wharf Holdings up 0.20 hkd or 0.76 pct at 26.55 and New World Development up 0.02 hkd or 0.14 pct at 14.0.

‘Sales of apartments in the past two months have been good on expectations that interest rates have already peaked or about to peak, and I expect this positive sentiment to be sustained in the coming days,’ says Tanrich’s Kwok.

He said China Mobile posted strong gains on a combination of factors.

‘The company remains a favorite among both retail and institutional investors who like its strong cash flow and it’s ability to give a high dividend payout,’ Kwok said, adding that the stock is also benefiting from the ‘off-and-on talk of a further appreciation of the yuan.’

China Mobile finished the morning up 1.11 pct or 2.14 pct at 52.95.

Banking stocks were mostly higher, with HSBC up 0.80 hkd or 0.57 pct at 141.80, unit Hang Seng Bank up 0.40 hkd or 0.41 pct at 98.55, Bank of East Asia up 0.10 hkd or 0.29 pct at 35.0 and BOC Hong Kong down 0.14 hkd or 0.82 pct at 17.0.

‘BOC Hong Kong has gained about 15 pct in the past few days and its fall on consolidation and some profit-taking is not surprising,’ said Kwok.

Shimao Property Holdings surged 0.51 hkd or 6.65 pct at 8.18, extending last Friday’s 3.37 post-results gain after news that it won a 530,000 square metre site in Jiaxing, Zhejiang for 484 mln yuan.

Sino Biopharmaceutical was up 0.03 hkd or 2.14 pct at 1.43 after it said it has agreed to establish a joint venture company that will produce ethylene and propylene.

Nam Tai Electronics was down 0.09 hkd or 7.69 pct at 1.08 after it said it expects third-quarter and full-year results to be weaker than previously anticipated due to lower sales.

Among other China-related stocks, Chalco was up 0.07 hkd or 1.31 pct at 5.43, PetroChina up 0.12 hkd or 1.37 pct at 8.85, China Unicom up 0.09 hkd or 1.27 pct at 7.19, Sinopec up 0.16 hkd or 3.40 pct at 4.87 and Angang New Steel up 0.11 hkd at 1.73 pct at 6.48.

Source- http://www.forbes.com

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China Telecom Net Growth Slows on Mobile Competition (Update1)

Aug. 30 (Bloomberg) — China Telecom Corp., the nation’s biggest fixed-line phone operator, reported its slowest profit growth on record as competition from mobile operators intensified.

First-half net income rose 2.6 percent to 11.6 billion yuan ($1.45 billion), or 0.14 yuan a share, from 11.3 billion yuan, or 0.14 yuan, a year earlier, the Beijing-based company said today. Sales rose to 84.4 billion yuan from 80.6 billion yuan.

Chairman Wang Xiaochu, 48, has turned to high-speed Internet services and interactive television ventures to bolster earnings after cell-phone companies cut rates. At the end of June, about 33 percent of China’s population owned a cell phone, compared with 28 percent who had a fixed-line subscription, according to the Ministry of Information Industry.

“Second-half outlook remains tough,” said Kelvin Ho, an analyst at Nomura International (Hong Kong) Ltd., who rates the stock a “buy” with a target price of HK$2.95. “China Telecom will rely more on broadband for growth. Wireless operators have pre-empted competition by new entrants by cutting tariffs.”

China Telecom was expected to post earnings of 11.9 billion yuan according to the median estimate of eight analysts in a Bloomberg survey.

The first-half profit margin fell to 13.7 percent from 14 percent a year earlier, the company said in a statement.

Earnings before interest, taxes, depreciation and goodwill amortization rose 4 percent to 44.2 billion yuan, China Telecom said.

Broadband Users

The company added a record 4.4 million broadband Internet users in the first six months. The company’s broadband subscribers increased 52 percent to 21 million last year from 13.9 million in 2004, it said.

China added 7.6 million broadband Internet users in the first half for a total of 45.1 million by the end of June,

The phone operator’s capital spending in the first half declined 9.1 percent to 20.8 billion yuan. Capital expenditure for the year will the 51 billion yuan, it said.

The first-half profit increase is the smallest since the company’s shares were listed in November 2002 on the Hong Kong stock exchange.

China Telecom said first-half profit, including connection fees of 2.5 billion yuan, fell to 14.1 billion yuan from 14.7 billion yuan a year earlier. Sales rose to 86.9 billion yuan from 84 billion yuan. The government stopped connection fees, which refer to the one-time charge of linking fixed-line users to the main network, in 2001. The charges were amortized over 10 years.

Source- http://www.bloomberg.com

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SK Telecom to Help China Develop 3G Mobile Service

Aug. 29 (Bloomberg) — SK Telecom Co., South Korea’s largest mobile-phone operator, will help China develop its own standard for wireless networks, seeking access to the world’s biggest cell-phone market by subscribers.

The alliance is the first China’s government has signed with an overseas operator for the third-generation technology known as TD-SCDMA, which allows faster downloads of movies and music, the Seoul-based company said in a statement. SK Telecom bought $1 billion of bonds convertible into shares of China’s second- largest mobile-phone company in July.

China’s homegrown standard needs to win customers to compete with rival technologies developed by Nokia Oyj and Qualcomm Inc. SK Telecom, the world’s first provider of 3G services, joins Spain’s Telefonica SA and Hong Kong’s PCCW Ltd. in trying to access a market with more cell-phone users than the combined populations of the U.S. and Japan.

China “can benefit from the experience of a foreign operator,” said Kelvin Ho, a telecom analyst at Nomura International (Hong Kong) Ltd. The agreement may “help faster development of the TD-SCDMA standard in China.”

SK Telecom said last month when it bought bonds convertible into a 6.7 percent stake in China Unicom Ltd. that the two companies would cooperate in the development of handset and network technology and new services.

Shares of SK Telecom rose 1.1 percent to close at 189,500 won in Seoul. The stock has fallen 6.9 percent since the company announced the convertible bond purchase, compared with a 9.7 percent rise by the Kospi stock index in that period.

`Government Support’

As part of the agreement announced today, SK Telecom will test TD-SCDMA in South Korea by the second half of next year, the statement said. China plans to start the 3G service before the start of the 2008 Beijing Summer Olympics, according to the statement.

SK Telecom expects its China business, into which SK Telecom has committed a great deal, to gain much momentum with the support of the Chinese government,” the company said.

China’s TD-SCDMA, or time division-synchronous code division multiple access, technology competes with wideband-CDMA, developed by companies including Nokia and Ericsson AB, and Qualcomm’s CDMA2000 as 3G standards.

In October 2000, SK Telecom became the world’s first company to start 3G mobile-phone services. A year later, NTT DoCoMo Inc. was the first operator to offer W-CDMA, the most common standard for the high-speed service.

Issue License

China’s government may issue its first 3G license within six months, China Netcom Group Corp. (Hong Kong) Ltd. Chief Executive Officer Zuo Xunsheng said in an interview in Hong Kong last week.

The Chinese regulator in February asked the parent companies of fixed-line operators China Netcom and China Telecom Corp. and China Mobile Ltd., the world’s largest cell-phone operator by users, to conduct trials of the TD-SCDMA standard.

Companies may spend 80 billion yuan ($10 billion) on 3G networks in China in the first year licenses are issued, according to estimates by Beijing-based researcher BDA China Ltd.

China added 38.4 million mobile-phone users in the first seven months of this year for a total of 431.8 million, according to government data.

Source-http://www.bloomberg.com

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China may issue 3G license in six months

Aug. 28, 2006 (China Knowledge) – The Chinese government could issue its first 3G license some time in the next six months, according to China Netcom Group Corp. (Hong Kong) Ltd. CEO Zuo Xunsheng.In an interview with Bloomberg, Zuo reportedly said: “We can’t drag on any longer if China expects to provide 3G services by the 2008 Olympics.”

China will be hosting the 2008 Olympic Games in Beijing and has been making efforts to improve various facilities around the country in preparation for the epochal event.

Among the government’s plans is the rollout of a high-speed wireless network. However, the government has so far been having difficulties settling on a standard for wireless network operations throughout the country.

At present, China’s government has yet to issue any 3G licenses and industry analysts and spectators have despaired of the government coming up with anything within the year after a false start in February when the country’s regulator of telecoms services asked China Netcom, China Telecom, and China Mobile to conduct trials of its locally-developed TD-SCDMA (Time Division Synchronous Code Division Multiple Access) standard.
The trials, which were supposed to have been completed in July, have since been extended to continue till October this year in order to test usage of the service among the three operators, Zuo said in the interview.

China Netcom is the country’s second-largest phone company and operates in the world’s largest mobile market by users – China had 431.8 million mobile subscribers at the end of July according to government figures.

Source- http://www.chinaknowledge.com

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Ozura Mobile Chosen as Excite Japan’s First International Distribution Partner

Ozura Mobile, a wholly owned subsidiary of Nextnation Communication and a leading international publisher and developer of mobile entertainment, today announced that it has been chosen as Excite Japan’s first international mobile game distribution partner.

Singapore (PRWEB) August 23, 2006 — Ozura Mobile, a wholly owned subsidiary of Nextnation Communication and a leading international publisher and developer of mobile entertainment, today announced that it has been chosen as Excite Japan’s first international mobile game distribution partner.

Excite Japan, one of Japan’s largest web portals and mobile game providers, is granting Ozura Mobile the distribution rights for its premium mobile game titles. Ozura Mobile plans to make these games available through its extensive network of distribution channels consisting of major mobile operators and distribution partners in Malaysia, Thailand, Singapore, Indonesia, Philippines, Australia, China, India and the United Kingdom.

“Ozura Mobile has been chosen as the preferred international mobile game distributor due to its well established presence in the global mobile gaming industry,” said Ozura Mobile’s Chief Executive Officer, Lion Peh.

Peh added that Ozura Mobile will be effectively offering more than 150 million mobile subscribers in its network the chance to play some of the most sought after mobile games today.

“This partnership with Excite Japan clearly reflects growing international recognition of Ozura Mobile’s cutting edge technology in the development of mobile gaming platforms. Our mobile gaming platform, FunlogiXâ„¢, is one of the most sought after platforms in the mobile gaming industry as it is highly compatible with games from all over the world ranging from Japanese to Russian origin developed using different development tools,” commented Peh.

He further revealed that over the next 3 years, Ozura Mobile expects a boost in revenue of up to USD20 million from global sales via this partnership.

Informa forecasts mobile gaming sales will generate USD$7.2bn a year worldwide by 2011, growing from the USD$2.4bn sold in 2006. The international provider of specialist information also predicts that Asia Pacific, which dominates mobile games sales, will account for nearly half the industry by 2011.

“The rapid revolution in the mobile gaming market, especially in the Asia Pacific, represents a huge potential for us. We have recently launched Indonesia’s first mobile gaming community with Indosat and we are soon to roll out more of our deployment programs in Thailand, Singapore, Philippines, China and Hong Kong. This will be another win for us in tapping into the substantial global gaming market,” said Peh.

To date, Ozura Mobile has published and aggregated an extensive compendium of games through its distribution network worldwide, representing over 2,000 game titles in over 130 countries. With its propriety gaming platform, FunlogiXâ„¢, Ozura Mobile also provides its state- of- the- art community based mobile gaming technology to mobile operators worldwide.

About Excite Japan Co. Ltd
Excite Japan Co., Ltd is one of the leading Japan-based Internet service provider. The Company has five business segments. The Advertising segment is engaged in the sale of advertising space on its Website to enterprises. The Content Service segment offers community services, music download services, online games and others. The Broadband Service segment provides Internet access services, mainly broadband services to general consumers. The Electronic Commerce (EC) segment is engaged in the sale, auction and shopping of commodities through Internet systems. The Others segment is involved in the development of Internet systems, as well as the management of fan clubs and the provision of services for beauty salon services through Internet. Excite Japan is a subsidiary of Itochu Corporation. Headquartered in Tokyo, the Company has three consolidated subsidiaries and three associated companies.

About Ozura Mobile
Ozura Mobile is a wholly owned subsidiary of Nextnation Communication Berhad and is a leading international developer and publisher for mobile games and game developer engine to carriers, aggregators, mobile phone manufacturers and service providers. The company creates games for the mobile phones based on the J2ME, BREW and Symbian platforms. Ozura Mobile’s games are available all over the world through its distribution network of partners spanning across 130 countries. It is expected that the growth of mobile phones supporting these platforms will exceed one billion units worldwide in 2008.

About Nextnation
Nextnation’ a mobile application service provider’ enables businesses and individuals to access’ connect’ and transact across today’s complex global mobile networks. Its core product MINDCEPâ„¢ Platform is a mobile multimedia communication platform’ facilitating and enabling mobile data transmission worldwide using WAP’ MMS’ SMS and Java technologies. MINDCEPâ„¢ is connected to some of the largest premium messaging networks in the world in order to offer a broad range of services from content distribution to mobile m-commerce and place the company at the forefront of this rapidly growing messaging market. Additional news and information about the company is available at www.nextnationnet.com.

Source- http://www.prweb.com/releases/2006/8/prweb427786.htm

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BPL clouds over Hutch’s IPO plans

The tussle over BPL Mumbai circle merger may not just delay Hutchison Essar’s plans to go public, but possibly impact the valuation when the eagerly awaited IPO happens, feel analysts, reports The Economic Times.

However, a Hutchison Telecommunications International spokesperson Mickey Shui told media from Hong Kong that the contemplated IPO and the acquisition of BPL Mumbai were two independent matters.

“We received DoT’s approval earlier this month and 98% of the consideration has already been paid to the vendors. We expect the BPL Mumbai acquisition to be completed as there are no conditions outstanding,” Shui added.

But Essar sources had earlier said that DoT’s approval was only for the merger of two companies (BPL with Hutch-Essar) and not for acquisition of shares and that too has been issued on August 11, 2006, which is after termination of agreement of BPL Mobile Communications.

When asked if HTIL was hopeful of a public issue this year, the spokesperson said that the company had no specific timetable for the contemplated IPO.

An India-based telecom analyst of global investment banking major said that the current spate of events surrounding the BPL (Mumbai circle) merger could delay the IPO of Hutch-Essar.

The valuations are also expected to take a beating and it was a concern for the shareholders, as well as the merchant bankers, another analyst added.

The valuation of Hutchison-Essar depends on many factors including prevailing market conditions, Shui said.

Source- http://www.moneycontrol.com

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Mobily launches 3.5G wireless technology globally

MUMBAI: Saudi Arabia mobile operator Mobily has announced the offer of its 3G services internationally. Mobily subscribers will be able to make video calls to UAE, Italy, Hong Kong, Luxemburg and Australia using the technology of 3G or 3.5G. Mobily has just completed its own 3.5G network which covers 15 cities in Saudi Arabia, consisting more than 900 base stations.

Subscribers will also be able to watch TV channels live on 3.5G. These include Alarabiyah channel, CNBC Arabiya channel, Saudi TV, Space Toon and others. Mobily says that it is offering a very competitive rate compared to other operators. The cost of video telephony is 0.80 halalas per minute for postpaid subscribers, whereas a minute cost one riyal when using the TV streaming. Mobily does not demand any monthly fees for all the third generation services.

Media reports indicate that the 3.5G service will also allow for multiplayer gaming. Most of the 3.5G (HSDPA) services require 2G and 3.5G phone handsets, except for the video calling which works only on 3G handsets. One of the excellent services the 3.5G will provide is the access to the internet with 3G speed from laptop using the mobile as a modem. The setting of the internet will not be different from 2G web setting. The speed exceeds four mega per second for download.

Source- http://www.indiantelevision.com

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