Boston, MA 05/19/2014 (wallstreetpr) – China Mobile Ltd. (ADR) (NYSE:CHL) continues to lead the mobile services industry in the country having more than 1.35 billion latent subscribers.
The Chinese mobile servicing company has been making huge investments in its 4G network to compete with rivals including China Telecom Corp Limited (ADR) (NYSE:CHA) and China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU), which continue to receive support from regulators. Analysts believe the China Mobile can continue to lead the market with constant improvement in its 4G network, which seems to be a strong advantage to the company’s stock.
Poor 3G Network
The company’s 4G network users are anticipated to generate high revenue on individual basis. The growth in this sector, however, is highly influenced by handset OEMs, whose cooperation plays a major role in the expected continuous rise. In 2013, the company’s 3G network was a disappointment as users continued to prefer its 2G network and it only accounted to 30% of the total subscribers. This was on account of its dis satisfactory data speed which was provided by TD-SCDMA.
China Mobile Ltd. (ADR) (NYSE:CHL) plans to continue investing in its 3G base stations this year. It however seeks to increase the investments in 4G base stations by twice in 2014. The company, which plans to invest billions in the fourth generation network, said that it will invest around 500,000 in the network’s support. It will also begin to provide the 4G network service in over 300 cities by the end of the year, it said.
At the same time, to lure users to subscribe to the new network, China Mobile Ltd. (ADR) (NYSE:CHL) aims at widening their options for handset ranges. It is already in talks with several major mobile manufacturers and has finalized deals with many OEMs including the California based technology giant Apple Inc. (NASDAQ:AAPL). Other companies it has signed agreements with are South Korea based Samsung Electronics Co., Ltd., Huawei Technology Co Ltd, Japan based Sony Corp (ADR) (NYSE:SNE) as well as Lenovo Group Limited (ADR) (OTCMKTS:LNVGY).