China Mobile

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China Mobile Communications Corporation (CMCC)
Native name 中国移动通信集团公司
Type State-owned enterprise
Headquarters Beijing, China
Owners People's Republic of China
Parent State-owned Assets Supervision and Administration Commission
China Mobile Limited
Native name 中国移动有限公司
Type Public company
Traded as SEHK0941
NYSECHL
Industry Telecommunications
Predecessors China Telecom (Hong Kong) Limited[1]
Founded 3 September 1997[2]
Headquarters Beijing, China
Area served Mainland China, Hong Kong, Pakistan
Key people Xi Guohua (Chairman)
Li Yue (general manager)
Products Fixed line and mobile telephony, internet services
Revenue CNY 527.99 billion (2011)[3]
Operating income CNY 151.29 billion (2011)[3]
Net income CNY 125.87 billion (2011)[3]
Total assets CNY 952.55 billion (2011)[3]
Total equity CNY 649.06 billion (2011)[3]
Employees 181,000 (2012)[3]
Parent China Mobile Communications Corporation (CMCC)
Website 10086.cn (Chinese)
chinamobileltd.com
China Mobile
Traditional Chinese 中國移動通信集團公司
Simplified Chinese 中国移动通信集团公司
Alternative Chinese name
Traditional Chinese 中國移動有限公司
Simplified Chinese 中国移动有限公司
Second alternative Chinese name
Traditional Chinese 中國移動
Simplified Chinese 中国移动
Literal meaning China Mobile

China Mobile Communications Corporation (Chinese: 中国移动通信集团公司) is a Chinese state-owned[4] telecommunication company that provides mobile voice and multimedia services[5] through its nationwide mobile telecommunications network.[2] The company is the largest mobile telecommunications company by market capitalization today, and it was named as such in March 2011.[6] China Mobile Limited (Chinese: 中国移动有限公司) is listed on both the NYSE and the Hong Kong stock exchange.[2]

As of July 2013, China Mobile (Chinese: 中国移动) is the world's largest mobile phone operator by subscribers with about 760 million.[7] The ARPU(Average revenue per user) for the company stays at 90 Renminbi since 2004.

History[edit]

A state-owned enterprise directly controlled by the government of the People's Republic of China[4] and also a public company that is listed on the NYSE and the Hong Kong stock exchanges,[2] China Mobile has dominated Chinese mobile services since its inception. As of 2010 China Mobile controls the vast majority of its domestic mobile services market with a 70% market share.[8] China Unicom and China Telecom have 20% and 10% shares, respectively.[8]

Incorporated in 1997 as China Telecom (Hong Kong) Limited,[1] China Mobile was born from the 1999 break-up of China Telecom.[9] (This company continues to provide mobile services, however.[8])

State control[edit]

China Mobile likely enjoys substantial protectionist benefits from China's government[10] but also experiences frequent government intervention in its business affairs.[11] Government control is maintained through a presumably government-owned holding company, China Mobile Communications Corporation (CMCC), that owns 100 percent ownership of China Mobile (HK) Group Limited,[12] which in turn holds over seventy percent ownership of China Mobile–the remainder being controlled by public investors.[2] Established in 2000,[12] CMCC is China Mobile Ltd's current parent company as of 2011.[13]

Rural subscriber base[edit]

Wang Jianzhou, Chairman and CEO during the Market Insight: Frontier Markets plenary session in Tianjin, China, 28 September 2008.[14]
display of China Mobile phones, 2010

China Mobile has historically held a greater share of the rural market than competitors.[15] By 2006, its network had expanded to provide reception to 97% of the Chinese population,[16] and the company has since seen a sustained stream of new, rural mobile customers.[15]

China Mobile also offers information services targeted at the rural market, including the Agricultural Information Service, which allows a variety of activities to take place through the use of mobile phones and the Internet. These include the sale and purchase of agricultural products, access to market prices for produce, wire transfers, bank withdrawals, and payments, etc.[17]

Overseas activities[edit]

China Mobile expanded overseas in 2007 with the purchase of Paktel in Pakistan[18] launching the Zong brand there a year later.[19]

In February 2013, China Mobile together with Vodafone, has participated in bidding for one of the two newly opened Myanmar Mobile licences.[20]

Domestic acquisitions[edit]

In May 2008, the company took over China Tietong, a fixed-line telecom[21] and the then third-largest broadband ISP in China,[22] adding Internet services to its core business of mobile services.

Network[edit]

China Mobile operates a GSM network,[23] which encompasses all 31 provinces, autonomous regions, and directly administered municipalities in Mainland China and includes Hong Kong, too.[2] GPRS is utilized for data transmission.[24]

3G

The company controls 70% of the Chinese mobile market but a far smaller percentage of the 3G market.[8] As of May 2012, its nearly 60 million 3G subscribers account for roughly 9% of its total subscriber base,[25] which is an increase from 3% in 2010.[8]

Its 3G network, still under construction in 2010, utilizes the TD-SCDMA standard, which China Mobile helped develop. 3G service is available in all of the 4 direct-controlled municipalities and most of the 283 prefecture-level cities in China as of 2010.[26]

4G

As of 2010, China Mobile has debuted small-scale 4G demonstration networks using a variant of 3GPP's Long Term Evolution, TD-LTE, and has plans for larger, city-wide demonstration networks in the future.[26] As of May 2012, such networks are in operation.[25]

While prior iPhone models couldn't use the China Mobile network due to the chipset relying on WCDMA-based networks, talks to carry the then unreleased 4G iPhone (iPhone 5) began in mid-2012.[25] On 17 January 2014, China Mobile will sell iPhone 5c and iPhone 5s.[27]

Everest

In 2003 and again in 2007, China Mobile provided mobile services on Mount Everest.[28]

Spratly Isles coverage

In May 2011, China Mobile announced its network now includes the controversial Spratly Islands.[29]

Nokia deal[edit]

In October 2014, Nokia and China Mobile signed a $970 million framework deal for delivery between 2014 and 2015.[30][31]

Service brands[edit]

China Mobile uses other names to differentiate its offerings.

Mainland China[edit]

China Mobile offers mobile services in Mainland China under several brands.[32]

  • Easyown (Chinese: 神州行, Hanyu Pinyin: Shénzhōuxíng Rough translation: "Travel across China"[33] (lit. "travel the holy states")): a basic prepaid mobile phone service more heavily marketed in rural areas[16]
  • GoTone (Chinese: 全球通, Hanyu Pinyin: Quánqiútōng Rough translation: "Global Connect"): subscription[33] flagship brand[34]
  • M-zone (Chinese: 动感地带, Hanyu Pinyin: Dònggǎndìdài Rough translation: "Dynamic Area"): a premium prepaid service popular with youths[34]
  • G3: a 3G service brand
  • And (Chinese: 和, Hanyu Pinyin: ): a 4G service brand

Hong Kong[edit]

Pakistan[edit]

  • Zong is China Mobile's brand in Pakistan and is operated by China Mobile Pakistan (CMPak),[19] a subsidiary.

References[edit]

  1. ^ a b Milestone China Mobile Official Site
  2. ^ a b c d e f Company Profile China Mobile Official Site
  3. ^ a b c d e f http://www.google.com/finance?q=NYSE%3ACHL&fstype=ii&ei=_r1rUOjpCcabkAX3Cg
  4. ^ a b Strait deals The Economist, 7 May 2009
  5. ^ Company Profile CMCC Official Site
  6. ^ "FT Global 500". The Financial Times. March 2011. Retrieved 4 January 2012. 
  7. ^ Operation Data – Customer Numbers China Mobile Official Site
  8. ^ a b c d e China Mobile Still Dominates, but Faces Competition in 3G. morningstar.com, 22 October 2010
  9. ^ Asian economic and political issues, Volume 8 (page 68) Frank Columbus, Nova Publishers, 2003 (Google Books)
  10. ^ Asian Economic and Political Issues, Volume 8 (page 54) 2003. Frank Columbus. Nova Publishers. (Google Books)
  11. ^ Asian Economic and Political Issues, Volume 8 (page 84) 2003. Frank Columbus. Nova Publishers. (Google Books)
  12. ^ a b CMCC Profile CMCC Official Site (Archive.org cache)
  13. ^ China Mobile, MTR, SJM Holdings, ZTE: Hong Kong Stocks Preview By Kana Nishizawa, bloomberg.com – 17 May, 2011 5:54 PM PT
  14. ^ Copyright World Economic Forum
  15. ^ a b "Chinese Telecom: China Mobile Leads the Way". Bloomberg BusinessWeek. 5 August 2009
  16. ^ a b Homepage > Brand & Products > Business Review CMCC Official Site
  17. ^ 2008 Corporate Social Responsibility Report – Rural Program CMCC Official Site
  18. ^ CMCC Officially Enter Pakistani Telecommunication Market, 25th March, 2007 CMCC Official Site
  19. ^ a b ZoNG the first international brand of China Mobile being launched in Pakistan, 5th April, 2008 CMCC Official Site
  20. ^ "Vodafone, China Mobile eye Myanmar". Investvine.com. 5 April 2013. Retrieved 5 April 2013. 
  21. ^ Telecoms in China The Economist, 29 May 2008
  22. ^ China Mobile to take over China Tietong Telecom
  23. ^ Beijing Olympic Games spur another technological leap forward CMCC Official Site, 18 Aug 2008
  24. ^ Homepage > About CMCC > Networks & Technologies CMCC Official Site
  25. ^ a b c Lee, Chyen Yee (16 May 2012). "China Mobile in talks with Apple for iPhone". reuters.com (Thompson Reuters). Retrieved 20 May 2012. 
  26. ^ a b "China Mobile Limited: Annual Report 2010". China Mobile Ltd. 2010. pp. 13–14. Retrieved 18 June 2011. 
  27. ^ Apple Announces Deal To Bring iPhones To China Mobile Starting On Jan. 17
  28. ^ For 2003 service, see Everest goes online for anniversary Mary Hennock, bbc.co.uk, Wednesday, 23 April 2003, 04:23 GMT 05:23 UK
  29. ^ Ian Mansfield, 18 May 2011, China Mobile Expands Coverage to the Spratly Islands, Cellular News
  30. ^ "Nokia, China Mobile sign $970 million framework deal" (Press release). Reuters. 10 October 2014. 
  31. ^ "Nokia, China Mobile sign $970 million framework deal". Investing.com. 10 October 2014. 
  32. ^ "Our Brands". China Mobile. 2007. Archived from the original on 4 December 2010. Retrieved 18 March 2008.  (Archive.org cache)
  33. ^ a b "Wangjianshuo's blog". Shanghai. 19 March 2003. Retrieved 4 January 2012.  |chapter= ignored (help)
  34. ^ a b Homepage > Brand & Products > Our Brands CMCC Official Site (Archive.org cache)
  35. ^ "Peoples: Company Profile (English)". China Mobile Peoples Telephone Co. Ltd. 2008. Archived from the original on 2 August 2008. Retrieved 27 September 2008. 
  36. ^ http://www.hk.chinamobile.com/en/about_us/profile/

External links[edit]