China Mobile,
the world's largest mobile phone operator, signed up 4.82 million
new users during December, more than the total population of
Ireland.
The operator added 53.2 million users last year to reach over 300
million, according to analysts at KGI
Securities in Hong Kong.
China Mobile and smaller rival China Unicom opened a combined
6.1 million new accounts last month, according to KGI data, which
cited company sources.
China Unicom now has 142 million subscribers. The two companies
added well over 60 million users last year, more than the
population of the UK.
Only two mobile phone providers exist in China's heavily-regulated
telecoms market, providing an ideal environment for
near-unrestrained subscriber growth at the giant government-linked
China Mobile.
However, the government is expected to license two new operators
when it rolls out long-delayed 3G services sometime during the next
12 months.
Driven by the strong subscriber growth, China Mobile's revenues
surged 21 per cent to $37.7bn last year. The company generated
$12.5bn in profit before tax.
China Mobile will spend $285m of these profits to take control of
Paktel,
Pakistan's oldest mobile phone firm, the company announced
today.
The investment, which will give the Chinese firm an 89 per cent
stake, is its first successful foreign acquisition. Several
previous efforts have failed, after rivals outbid the Chinese
operator.
"The transaction implies an enterprise valuation for Paktel Limited
of $460m, " China Mobile announced in a press statement.
"Completion of the transaction is subject to the receipt of certain
regulatory approvals. If such approvals are obtained, completion is
expected to occur in late February 2007."
While China's mobile firms hog the limelight, local fixed network
operator China Telecom also reported
expansion. But growth in fixed lines is slowing and China Telecom
was outpaced by the mobile operators.
China Telecom added a further 640,000 new lines during December,
and now claims a total of 223 million subscribers.
"Given the continuous decline of the mobile tariff, the 'mobile
phone as a substitute for a fixed line effect' has dominated the
subscriber market," wrote KGI Securities analysts in a note to
investment clients today.
"China Mobile is the major winner subscriber growth and profit
growth in 2006, which is anticipated to increase 26 per cent year
on year.