China Mobile's Positive Outlook Amid Industry Changes

The three major operators in mainland China are launching a service that retains mobile data for users from month to month. Not everyone thinks it's a good idea.

Author: Jacky Ho   

The three major operators in mainland China, in a change in the way they store data, will no longer discard unused data at the end of each month. Instead, the service will retain mobile data for users so it can be used month to month. That might sound good for the companies, but UBS has a negative view towards this new program.

UBS said such a decision will put pressure on the business operations and profitability in the coming quarter. The monthly household revenue is expected to decrease by 10 percent to 15 percent.

Before long, the three major operators in China will announce their performances, Macquarie is optimistic about the prospects of China Mobile.

China Mobile Limited is an investment holding company principally engaged in telecommunication and related businesses. Its main businesses include Mobile businesses, Wireline Broadband businesses, and the Internet of Things (IoT) businesses. Mobile businesses include two categories of services. Voice services include local calls, domestic and international long distance calls, roaming services and voice value-added services. Data services include short message services and multimedia message services, wireless data traffic services and application and information services, such as Mobile Music, Mobile Reading, and Mobile Video, among others. Wireline Broadband businesses include the provision of wireline broadband and related services. The Company also provides customer services, including phone bill inquiry, among others. The Company mainly operates businesses in Mainland China.