HONG KONG-China Mobile reported a 13-percent increase in profit in its first-half results, but noted declining average revenue per user and warned on increased competition.
For the six months to end-June, China Mobile posted a net profit of $2.1 billion compared with last year’s $1.9 billion. The company’s ARPU decreased from $14.61 for the same period last year to $12.56 for the first six months of 2003. The world’s largest wireless operator boosted its subscriber base to 129.1 million customers.
China Mobile noted that the effects of the SARS outbreak had mostly subsided, but highlighted fierce competition from China Unicom, the country’s second-largest mobile operator that operates both GSM and CDMA networks, and the limited mobility wireless services offered by China Telecom and China Netcom, both fixed-line operators. The two landline companies have continued to expand their “Little Smart” wireless services, which are much less expensive than cellular service. China Mobile said it expects continued price competition.
China Mobile proposed an interim dividend of about 2 cents.
