China Mobile


China Mobile
China Mobile Limited
Type A publicly listed, state-owned enterprise
Traded as SEHK0941 NYSECHL
Industry Telecommunications
Mobile communications
Predecessor China Telecom (Hong Kong) Limited[1]
Founded 1997[2]
Area served Mainland China, Hong Kong, Pakistan
Products mobile services, value-added mobile services[3]
Revenue increase US$ 73.366 billion (2010)[4]
Net income increase US$ 18.147 billion (2010)[4]
Owner(s) China Mobile (Hong Kong) Group Limited (74.22%, 2009)[5]
Employees 145,954 (2009)[4]
Website chinamobileltd.com

China Mobile Limited (simplified Chinese: 中国移动通信; traditional Chinese: 中國移動通信; pinyin: Zhōngguó Yídòng Tōngxìn) is a Chinese state-owned[6] telecommunication company that provides mobile voice and multimedia services[7] through its nationwide mobile telecommunications network, the largest of its kind in the world.[2] Also the most valuable mobile telecommunications company in the world,[8] it is listed on both the NYSE and the Hong Kong stock exchange.[2]

As of March 2011, China Mobile is the world's largest mobile phone operator with over 600 million subscribers.[9]

Contents

History

A state-owned enterprise directly controlled by the government of the People's Republic of China[6] 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.[10] China Unicom and China Telecom have 20% and 10% shares, respectively.[10]

Incorporated in 1997 as China Telecom (Hong Kong) Limited,[1] China Mobile was born from the 1999 break-up of China Telecom.[11] (This company continues to provide mobile services, however.[10])

State control

China Mobile likely enjoys substantial protectionist benefits from China's government,[12] but also experiences frequent government intervention in its business affairs.[13] 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,[14] which in turn holds over seventy percent ownership of China Mobile–the remainder being controlled by public investors.[2] Established in 2000,[14] CMCC is China Mobile Ltd's current parent company.[15]

Rural subscriber base

Wang Jianzhou, Chairman and CEO during the Market Insight: Frontier Markets plenary session in Tianjin, China, 28 September 2008.[16]
display of China Mobile phones, 2010

China Mobile has historically held a greater share of the rural market than competitors.[17] By 2006, its network had expanded to provide reception for 97% of the Chinese population,[18] and the company has since seen a sustained stream of new, rural mobile customers.[17]

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.[19]

Overseas activities

China Mobile expanded overseas in 2007 with the purchase of Paktel in Pakistan[20] launching the ZONG brand there a year later.[21]

Domestic acquisitions

In May 2008, the company took over China Tietong, a fixed-line telecom[22] and the then third-largest broadband ISP in China,[23] adding Internet services to its core business of mobile services.

Network

China Mobile operates a GSM network,[24] 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.[25]

3G

The company controls 70% of the Chinese mobile market, but a far smaller percentage of the 3G market.[10] As of 2010 97% of China Mobile subscribers used its 2G services.[10] Its 3G network, still under construction in 2010, utilizes the TD-SCDMA standard,[26] 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 Long Term Evolution, TD-LTE, and has plans for larger, city-wide demonstration networks in the future.[26]

Everest

In 2003 and again in 2007, China Mobile provided mobile services on Mount Everest.[27]

Spratly Isles coverage

In May 2011, China Mobile announced its network now includes the controversial Spratly Islands.[28]

Service brands

China Mobile uses other names to differentiate its offerings.

Mainland China

China Mobile offers mobile services in Mainland China under several brands.[29]

  • Easyown (Chinese: 神州行, Hanyu Pinyin: Shénzhōuxíng) a basic prepaid mobile phone service that is more heavily marketed in rural areas[18]
  • GoTone (Chinese: 全球通, Hanyu Pinyin: Quánqiútōng) the flagship brand[30]
  • M-zone (Chinese: 动感地带, Hanyu Pinyin: Dònggǎndìdài) a premium prepaid service, targeting the youth demographic[30]

Hong Kong

Pakistan

  • ZoNG is China Mobile's brand in Pakistan and is operated by China Mobile Pakistan (CMPak),[21] a subsidiary.

References

  1. ^ a b Milestone China Mobile Official Site
  2. ^ a b c d e f Company Profile China Mobile Official Site
  3. ^ China Mobile Limited NYSE Euronext Listings Directory
  4. ^ a b c China Mobile Limited: Key China Mobile Limited Financials hoovers.com
  5. ^ Annual report 2009
  6. ^ a b Strait deals The Economist, May 7th 2009
  7. ^ Company Profile CMCC Official Site
  8. ^ Global 500 2010: The world's largest companies ft.com
  9. ^ Operation Data - Customer Numbers China Mobile Official Site
  10. ^ a b c d e China Mobile Still Dominates, but Faces Competition in 3G. morningstar.com, 10-22-10
  11. ^ Asian economic and political issues, Volume 8 (page 68) Frank Columbus, Nova Publishers, 2003 (Google Books)
  12. ^ Asian Economic and Political Issues, Volume 8 (page 54) 2003. Frank Columbus. Nova Publishers. (Google Books)
  13. ^ Asian Economic and Political Issues, Volume 8 (page 84) 2003. Frank Columbus. Nova Publishers. (Google Books)
  14. ^ a b CMCC Profile CMCC Official Site (Archive.org cache)
  15. ^ China Mobile, MTR, SJM Holdings, ZTE: Hong Kong Stocks Preview By Kana Nishizawa, bloomberg.com - May 17, 2011 5:54 PM PT
  16. ^ Copyright World Economic Forum
  17. ^ a b Chinese Telecom: China Mobile Leads the Way bussinesweek.com, August 5, 2009, 9:28AM EST
  18. ^ a b Homepage > Brand & Products > Business Review CMCC Official Site
  19. ^ 2008 Corporate Social Responsibility Report - Rural Program CMCC Official Site
  20. ^ CMCC Officially Enter Pakistani Telecommunication Market, 25th March, 2007 CMCC Official Site
  21. ^ a b ZoNG the first international brand of China Mobile being launched in Pakistan, 5th April, 2008 CMCC Official Site
  22. ^ Telecoms in China The Economist, May 29th 2008
  23. ^ China Mobile to take over China Tietong Telecom
  24. ^ Beijing Olympic Games spur another technological leap forward CMCC Official Site, 18th Aug, 2008
  25. ^ Homepage > About CMCC > Networks & Technologies CMCC Official Site
  26. ^ a b c "China Mobile Limited: Annual Report 2010". China Mobile Ltd. 2010. pp. 13-14. http://www.chinamobileltd.com/images/pdf/2011/ar/2010_a_e_full.pdf. Retrieved 18 June 2011. 
  27. ^ For 2003 service, see Everest goes online for anniversary Mary Hennock, bbc.co.uk, Wednesday, 23 April, 2003, 04:23 GMT 05:23 UK
  28. ^ Ian Mansfield, 18th May 2011, China Mobile Expands Coverage to the Spratly Islands, Cellular News
  29. ^ "Our Brands". China Mobile. 2007. http://www.chinamobile.com/en/mainland/products/brands.html. Retrieved 2008-03-18. 
  30. ^ a b Homepage > Brand & Products > Our Brands CMCC Official Site
  31. ^ "Peoples: Company Profile (English)". China Mobile Peoples Telephone Co. Ltd.. 2008. Archived from the original on 2008-08-02. http://web.archive.org/web/20080802120632/http://www.peoples.com.hk/p_about_profile_iso.jsp. Retrieved 2008-09-27. 

External links

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