Wednesday 7 August 2013

China telecoms: Mobility problems


China Mobile is struggling to hold its own against innovative new competitors. Can the company reinvent itself?

China Mobile, the country's largest wireless operator by subscribers, seems to have lost its way of late. Its basic GSM service, which used to rake in heaps of money, lost nearly 12m customers during the first four months of this year. Its 3G TD-SCDMA service has had a bumpy start. To make the situation even more precarious, 4G TD-LTE is making little headway without a licence, and it is not clear how many customers it will recruit once rolled out.


Meanwhile, China Mobile's traditional SMS services – once the most popular in the land – saw volume and revenue slide by about 7% in 2012 while revenue from voice inched up only 2%. And the wireless behemoth is under attack from a number of OTT operators in areas of mobile IM, P2P video, games and mobile apps. Many of these OTTs were once China Mobile’s service providers, but have gradually turned into fierce
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