4G roll out lifts China Mobile 1H 2015 revenues

China’s dominant mobile operator – China Mobile – has reported operating revenues of RMB340.7 billion, up 4.9%, having increased its subscribers by 3.4% to over 810 million.

The revenue figures are, however, slightly flattered by sales of products and other items, which were up 65% to RMB41.2 billion, meaning revenues from telecoms services were more or less flat, year-on-year.

“In the first half of 2015, amidst the complex competitive landscape, the Group proactively seized the good opportunities brought by the ‘Internet+’ Plan, aligned with the development trends of three growth curves in voice, data traffic and digital services, further advanced strategic transformation, accelerated business redeployment and innovation, persistently bolstered our leading advantages in 4G business, fostered digital services and improved quality and efficiency, demonstrating a sound growth momentum.” said Chairman Xi Guohua in a letter to shareholders.

The China Mobile report focused on the roll out of its 4G network, with reached 940,000 base stations in the first half of the year. The company also managed to sell 140 million 4G handsets in that period and increase its 4G subscribers by 100 million to 190 million.

Revenue growth was also flat at China Telecom, although the majority of its revenues still come from fixed line services. Having said that the acquisition of an FDD LTE license seems to be good news for CT and the company anticipates an acceleration in its 4G network roll out as a consequence, especially when its tower sharing initiatives are taken into account.

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