China Mobile Limited - Company Strategy & Performance Analysis
In 2016, China accounted for 98.7% of China Mobile’s total revenue. The company offers a comprehensive range of mobile telecommunications services in all 31 provinces, autonomous regions and municipalities in China and Hong Kong. In 2016, Hong Kong and Pakistan accounted for 0.9% and 0.5% of the company’s total revenue respectively
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Strong presence across China and Hong Kong
China Mobile is the largest provider of mobile telecommunications services in the world. The company provides a full range of mobile telecommunications services in all of China’s 31 provinces, autonomous regions and directly administered municipalities in Mainland China, as well as in the Hong Kong Special Administrative Region. Such a large subscriber base gives the company a competitive advantage due to which it can afford to spend on research and development (R&D).
Declining mobile voice ARPS limiting the revenue growth
The decline in mobile voice ARPS limits growth in total mobile service revenue. China Mobile’s Voice ARPS in China declined at a CAGR of -7.5%, from US$7.2 per month in 2012 to US$5.2 per month in 2016 due to the popularity of over-the-top (OTT) messaging services. Although the company posted a robust growth in data ARPS, it could not offset the negative impact.
Strong growth potential in data services business
Data services offer China Mobile a considerable growth opportunity. The firm is able to provide wireless data traffic business, application, and information services, from music and video to payment wallets and location services. Due to its vast customer base the firm is well positioned to benefit from the demand for mobile data
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