China Mobile’s Profit Fell 10% for Capital Expenditure of 4G Service in 2014

The world’s largest mobile network-China Mobile, fell 10 per cent to Rmb109.3bn of its Profits in 2014, partly the result of an ambitious capital expenditure programme of its 4G service.

China Mobile boasts 62 per cent of all mobile phone customers in China, its share of mobile data traffic is relatively constricted due to its slow 3G network, which makes the company have no choice but seeking to remedy with a widespread rollout of 4G technology.

Following problems with its 3G service the company moved swiftly to roll out 4G, receiving its 4G licence a year before its rivals.

Owing to 500,000 completed base stations in 2014, China Mobile got the jump on it two competitors, China Unicom and China Telecom, in the race to convert subscribers.

China Mobile finished 2014 at 90.1m 4G subscribers out of a total reported 97m by China’s Ministry of Industry and Trade.

The company has continued to capture 84 per cent of total 3G and 4G subscriber additions for the fourth quarter.

Mobile data traffic revenue rose by 42 per cent over the year, the company said.

Compared to build 500,000 base stations in 2014 — A mammoth building task which accounted for about 50 per cent of worldwide 4G capital expenditure — China Mobile said it intended to build only 300,000 new 4G base stations in 2015. For reasons analysts expect China Mobile to have a better 2015.