Tag Archives: China Mobile

China Mobile latest Business & Financial news from Doug Young, the Expert on Chinese Companies, (former Journalist and Chief editor at Reuters in Asia)

TELECOMS: China Telecom Displays Aggression, Unicom Conservatism

Bottom line: China Telecom’s aggressive bidding for a government contract highlights its more entrepreneurial style, while Unicom’s latest announcement on its private ownership plans reflects it conservative, bureaucratic style.

Unicom mixed ownership program crawls ahead

Two of China’s trio of wireless telcos are in the news today, reflecting an effort by Beijing to breathe some life into these laggard state-run behemoths that always seem unable to realize their potential. The first headline has China Telecom (HKex: 728; NYSE: CHA), the smallest of the nation’s 3 carriers, making an aggressive bid to essentially provide services  for free to a government agency in northeast Liaoning province. The second has Unicom (HKEx: 762; NYSE: CHU), the second largest carrier, disclosing some more details on its plan to introduce some private capital to the company. Read Full Post…

TELCOMS: China Telecom Eyes 5G Network Sharing

Bottom line: China Telecom, Unicom and China Broadcasting Network could share the costs of a 5G network to lower costs, while China Mobile is likely to construct a network on its own.

China telcos consider 5G network sharing

As earnings season reaches a crescendo, wireless carrier China Telecom (HKEx: 728; NYSE: CHA) is raising an old theme by saying it might consider sharing resources with someone else in building a next-generation 5G network. This particular topic first surfaced more than a year ago when China Telecom and rival Unicom (HKEx: 763; NYSE: CHU) studied the possibility of sharing 4G resources, even though they ultimately each built their own networks. (previous post)

The interesting twist this time is that Beijing is rolling out a program to inject private capital into the telecoms sector, meaning perhaps China Telecom and the other telcos could be allowed to pick private-sector partners for their 5G networks. Another interesting wrinkle comes in the form of a fourth state-run telco that was assembled from the nation’s many cable TV companies last year and would probably like to have its own telecoms network. Read Full Post…

TELECOMS: VNO Movement Finally Gains Traction

Bottom line: China’s VNO program appears to be gaining momentum heading into its third year, and could reach the 200 million subscriber mark by the end of 2017.

Virtual network operators gain momentum

It’s been more than a year since I last wrote about China’s fledgling attempt to breathe new life into its telecoms services sector by creating virtual network operators (VNO), mostly because the program seemed to be sputtering in its first couple of years. But new data from the telecoms regulator seems to suggest the industry may finally be finding its legs, and could be starting to take some meaningful market share from the nation’s monopoly of 3 big state-run telcos.

The headline figure underpinning my assertion is 43 million, which appears to be the number of VNO subscribers in China at the end of last year. (Chinese article) I need to give a quick disclaimer here, as nowhere in the article is the term VNO or variant MVNO used to describe this sector, which is called the “mobile resale business”. But that term, combined with a description of the program, does seem to indicate that these are VNO subscribers. Read Full Post…

TELECOMS: China Telecom Spins Off Content Units

Bottom line: China Telecom’s sale of several key entertainment assets to a separately run and listed unit reflects the company’s more dynamic nature compared with its 2 peers, as it tries to create services that can compete with private-sector rivals.

China Telecom (HKEx: 728; NYSE: CHA) is showing once more why it’s a telco to watch, with word that it’s formally spinning off 4 of the main entertainment businesses on its main E Surfing platform to one of its independently run and listed units. In this case the telco is spinning off the four to its fully-owned but separately managed Besttone Holdings (Shanghai: 600640) unit, in what looks like a bid to make these services more competitive with private sector rivals. Read Full Post…

TELECOMS: Unicom Seeks New Life with BAT Magic

Bottom line: Unicom is likely to choose all 3 of the BAT companies as equity and strategic partners under Beijing’s pilot program to invigorate big state-run companies, but none of the tie-ups will produce meaningful results.  

Unicom eyes BAT partnerships

China Unicom (HKEx: 762; NYSE: CHU), the perennial laggard among China’s 3 major telcos, is reportedly looking for new life by tying up with the nation’s big 3 Internet companies, Tencent (HKEx: 700), Alibaba (NYSE: BABA) and Baidu (Nasdaq: BIDU). I might normally say “so what?” to this particular development, since it seems like Unicom and its 2 fellow state-run telcos are regularly announcing this kind of partnership, always with little or no meaningful impact on their business. Read Full Post…

China News Digest: October 21, 2016

The following press releases and news reports about China companies were carried on October 21. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════

  • China Mobile (HKEx: 941) Announces Financial Results for First 3 Quarters (HKEx announcement)
  • Homestay Business of Ctrip (Nasdaq: CTRP) and Qunar Acquired by Tujia (PRNewswire)
  • China iOS App Store Passes US in Sales to Become World’s Largest – Report (Chinese article)
  • Walmart (NYSE: WMT) Opens Flagship Store on JD.com (Nasdaq: JD) (Chinese article)
  • Giant Interactive to Buy Online Game Maker Playtika for 30.5 Bln Yuan (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

TELECOMS: More Proactive Stance Needed in Telco Fraud Fight

Bottom line: Chinese companies need to become more proactive in ending practices that harm consumers, or risk facing pressure from regulators and hurting their prospects for expansion abroad.

Telcos get tough with real name registration

A campaign requiring all mobile phone users to register with their real names was in the headlines for much of last week, in the latest step to curtail rampant phone fraud in China that has grabbed recent attention due to several high-profile cases. Notably, the real-name registration drive was led by 6 government ministries, rather than the nation’s 3 major wireless carriers whose networks are the primary platform for committing most of the fraud.

Both the government and carriers have known about this kind of fraud for years, but did little to aggressively tackle the problem until the recent wave of negative publicity. Read Full Post…

INTERNET: Tencent Takes China’s Corporate Crown on Facebook-Sky Hopes

Bottom line: Tencent’s new crown as Asia’s most valuable company reflects the rapid growth of China’s private sector in the last decade, and could auger an eventual challenge to global social networking leader Facebook. 

Tencent takes crown for most valuable Chinese company

Media are fawning on Chinese Internet sensation Tencent (HKEx: 700), which has just edged past telecoms giant China Mobile (HKEx: 941; NYSE: CHL) to become the nation’s most valuable publicly traded company. Such a feat would have been unthinkable a decade ago, when the nation’s private sector was still in its infancy and state-run monoliths like China Mobile still dominated China’s corporate landscape. But much has changed over the last 10 years, and Tencent in many ways reflects the huge potential that investors see in a Chinese private sector that has come to dominate many emerging industries like Internet-based products and services. Read Full Post…

TELECOMS: China Mobile, Alibaba Take Hit in Phone Fraud Fight

Bottom line: China Mobile and its peers could take a big hit to their voice call revenues as they roll-out anti-fraud systems to counter negative publicity, while Alibaba could suffer similar but smaller impact to its pre-paid phone card business.

China Mobile cracks down on phone conmen

The same week it officially lost its crown as China’s most valuable listed company, China Mobile (HKEx: 941; NYSE: CHL) is back in the headlines with more bad news related to a swell of publicity involving the nation’s rampant phone fraud. Normally I might dismiss this story, since phone fraud has been common in China for years and is really nothing new. But another similar case this year ended up becoming a huge headache Baidu (Nasdaq: BIDU), and cost the online search giant huge sums in both market value and lost revenue. Read Full Post…

China News Digest: September 8, 2016

The following press releases and news reports about China companies were carried on September 8. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════

  • Oppo Becomes Major Southeast Asia Smartphone Player, Xiaomi Enters India Top 3 (Chinese article)
  • SocGen (Paris: SOGN ) in Talks to Sell 49 Pct of China Asset Manager to Warburg (English article)
  • China Mobile (HKEx: 941) Installs Phone Scam Warning System in Inner Mongolia (Chinese article)
  • Ctrip (Nasdaq: CTRP) Announces Pricing of Offering of ADSs (PRNewswire)
  • iDreamSky (Nasdaq: DSKY) Completes Going Private Transaction (GlobeNewswire)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

China News Digest: September 6, 2016

The following press releases and news reports about China companies were carried on September 6. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════

  • Alibaba (NYSE: BABA) Starts Selling Down Meituan-Dianping Stake (Chinese article)
  • Tencent (HKEx: 700) Passes China Mobile to Become Asia’s Most Valuable Firm (Chinese article)
  • LeEco (Shenzhen: 300104) Says Car Unit to Reach Volume Production in 3 Years (Chinese article)
  • O2O Grocery Platform Huimin Secures 1.3 Bln Yuan Series B Funding (English article)
  • Phoenix Satellite TV (HKEx: 2008) Reports Interim Results (HKEx announcement)
  • Latest calendar for Q2 earnings reports (Earnings calendar)