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: Telefonica Nears Divorce with China Unicom

Bottom line: Telefonica is likely to finalize its divorce with Unicom in the next 2 years, following the latest halving of its holdings in its Chinese partner to 1 percent as part of a sell-down of non-core assets.

Telefonica dumps more Unicom shares

For some reason that’s not completely clear to me, Spanish telco Telefonica (Madrid: TELF) doesn’t want to admit that its decade-long marriage with China Unicom (HKEx: 763; NYSE: CHU) was a dud and is headed for divorce. That’s my latest assessment, following reports that the Spanish carrier has further sold down its stake in its Chinese partner, leaving it with a miniscule 1 percent of Unicom’s shares. This particular sale was probably driven mostly by a need for cash. But I really don’t understand why Telefonica didn’t just completely dump the rest of its shares and finally end this marriage that never produced anything useful for either side. Read Full Post…

TELECOMS: Telcos Fight Enterprise Voice Rivals, Regulator Resists

Bottom line: The MIIT should be commended for resisting pressure by China’s 3 telcos to ban free private voice services for enterprise customers, but should move quickly to show it will license such service providers like DingTalk and WeChat.

DingTalk halts free enterprise voice service

The ongoing battle between China’s big 3 state-run telecoms carriers and an emerging field of private sector challengers was in the headlines last week, when rumors emerged that the regulator was set to stop private firms from offering free voice services for business customers. The move looked set to potentially shut down popular services provided by Internet giants Tencent (HKEx: 700), Alibaba (NYSE: BABA) and others, before the regulator clarified that licenses were needed for companies to provide such voice services. (Chinese article) Read Full Post…

TELECOMS: China Telecom Zips in 4G, Unicom Lags

Bottom line: China Telecom could become less aggressive in 4G this year under its new leadership, while China Mobile remains the investor best bet among China’s 3 carriers due to early entry to 4G.

China Telecom zooms in 4G

It’s been a long time since I’ve looked at the bigger China telecoms landscape for total subscribers and 4G service, so the release of the latest monthly data from the nation’s 3 major carriers seems like a good opportunity to assess the situation. Not surprisingly, all 3 have posted anemic overall subscriber growth since the start of the year due to an increasingly saturated market. But a look at 4G shows a more diverse picture, with China Telecom (HKEx: 728; NYSE: CHA) acting far more aggressively than rival China Unicom (HKEx: 762; NYSE: CHU) in the quest for new subscribers. Read Full Post…

China News Digest: June 14, 2016

The following press releases and news reports about China companies were carried on June 14. To view a full article or story, click on the link next to the headline.

  • Baidu (Nasdaq: BIDU) Announces Lowered Revenue Guidance for Q2 (PRNewswire)
  • Nokia (Helsinki: NOK1V) Signs $1.5 Bln Framework Deal with China Mobile (HKEx: 941) (English article)
  • Okmetic (Helsinki: OKM1V) Says 93 Pct of Shares Tendered for Offer by China’s NSIG (GlobeNewswire)
  • After Apple, Didi Chuxing Gets $600 Mln Investment from China Life (HKEx: 2628)
  • Cheesecake Factory (Nasdaq: CAKE) Opens First China Store at Shanghai Disney (Businesswire)

CHIPS: China Repeats Flawed R&D Model With Qualcomm

Bottom line: China should abandon its model of trying to develop proprietary technology through government-backed initiatives, and focus instead on supporting leading private companies like Huawei to develop such products.

Qualcomm JV developing special server chip for China

China has started down a familiar but flawed path to creating its own cutting edge-technology, with reports last week that a joint venture backed by US telecoms giant Qualcomm (Nasdaq: QCOM) is developing a special microchip for the China market for use in computer servers that power the Internet. The effort looks strikingly similar to previous ones that typically saw China work with big foreign companies to develop technologies to compete with existing global products and standards. Read Full Post…

TELECOMS: China Mobile Surrenders to WeChat, Youku

Bottom line: China Mobile’s retirement of its Internet-based texting and video services reflect its inability to compete with private providers of such services, and underscores its growing position as a slow-growth network operator.

China Mobile shutters Internet text, video services

In a move that was long overdue, leading wireless carrier China Mobile (HKEx: 941; NYSE: CHL) has thrown up the white flag with a symbolic surrender to WeChat, Youku and the many other private companies that have steadily stolen its new business opportunities. In this case the surrender comes in the form of formal retirements for China Mobile’s Internet-based Fetion texting service, and also its lesser known mobile video product.

Fetion was once hugely popular in China, allowing users to send SMS text messages for free by routing them over the Internet. China Mobile was an early innovator in creating that kind of “over the top” (OTT) service that took advantage of the mobile Internet. But more recently it has rapidly lost that position to more nimble private companies like Tencent (HKEx: 700) and Youku. Read Full Post…

VENTURE FOCUS: Tiger Brokers Feeds on China Appetite for US Stocks

Bottom line: Tiger Brokers could see strong growth by banking on Chinese demand for US and Hong Kong stocks, but also faces some risk if Beijing decides to regulate the company as a financial firm.

Tiger eyes Chinese with appetite for US, HK stocks
Tiger Brokers eyes Chinese with appetite for US, HK stocks

I’m kicking off my new series on noteworthy venture-backed companies with the fast-growing Tiger Brokers, which is feeding off a Chinese love of stocks and growing demand for access to overseas markets. In the current climate where China’s own stock markets have become quite volatile and prone to big sell-offs, Tiger’s gateway to the US and Hong Kong stock markets could prove a potent draw to Chinese traders looking to diversify their portfolios with international stocks from more mature markets.

In a small but highly symbolic footnote to this story, Tiger is also finally giving Chinese investors access to many of China’s hottest companies that are traded overseas, including the Internet “big 3” of Baidu (Nasdaq: BIDU), Alibaba (NYSE: BABA) and Tencent (HKEx: 700). That could ultimately provide some upside for many of those stocks over the longer term, since Chinese investors are likely to boost trading volumes for many of these homegrown companies whose shares previously languished due to lack of familiarity among western investors. Read Full Post…

TELECOMS: Fourth Telco Finally Launches Amid Low Hopes

CBN gets telecoms license

Some 4 years after disappearing from the headlines, a fourth telecoms carrier formed from China’s numerous regional cable TV companies is finally making a formal debut with its receipt of an official license to offer telecoms services. That means the new company, China Broadcasting Network Co (CBN), could theoretically shake up China’s laggard telecoms services industry that has been monopolized for years by the trio of state-run giants, China Mobile (HKEx: 941; NYSE: CHL), China Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHA).

But anyone hoping for big change shouldn’t get too excited, since CBN is cut from the same cloth as the existing 3 state-run telcos. What’s more, the new company is likely to be plagued with internal power struggles, at least initially, since it was created from a patchwork of provincial cable TV companies whose former stakeholders may still try to exert some influence. Read Full Post…

TELECOMS: Colluding China Telcos Resist End to Roaming Fees

Bottom line: Beijing should take more aggressive steps to ensure true competition between China’s 3 telcos, to prevent collusion like their current resistance to ending domestic roaming fees.

China telcos resist end to roaming fees

The latest sign of collusion in China’s telecoms sector was in the headlines last week, as the nation’s big 3 carriers appeared to band together to counter new calls for an end to domestic roaming charges. A number of arguments were put forth for maintaining such fees, but the bottom line is that carrier costs of providing such service are negligible and the fees themselves remain an important revenue source.

The US market, which is most similar to China, eliminated such fees more than a decade ago due to competition between 4 major carriers that emerged in the 1990s. But China’s carriers, while competitive in some areas, appear to be acting together in anti-competitive fashion to resist the change, a common occurrence due to close ties between the companies. Read Full Post…

TELECOMS: China Mobile Posts Solid Q1, Set for Rebound

Bottom line: China Mobile’s latest results show that its business is starting to pick up after years of stagnation, which could provide some upside for its stock over the next 1-2 years as it steals share from its two smaller rivals.

China Mobile posts solid results

Profit growth of 0.5 percent may not sound like anything to boast about, but at least it’s growth and not contraction. That’s the message that telecoms giant China Mobile (HKEx: 941; NYSE: CHL) hopes to send with its latest results, which show the company returned to profit growth in the first quarter of this year after a sharp drop in last year’s fourth quarter.

China Mobile’s return to profit gains was fueled by strong revenue growth, as the company took advantage of its early entry to 4G and aggressive promotions to build up its customer base and steal market share from its 2 smaller rivals, China Unicom (HKEx: 763; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: 728). The trend certainly looks positive for China’s largest telco, since its profit growth is likely to accelerate now that the most aggressive spending on its new 4G network is in the past. Read Full Post…

China News Digest: April 21, 2016

The following press releases and news reports about China companies were carried on April 26. To view a full article or story, click on the link next to the headline.

  • China Mobile (HKEx: 941) Announces Q1 Results (HKEx announcement)
  • Baidu (Nasdaq: BIDU) Video to Be Spun Off, Secures 1 Bln Yuan Funding (English article)
  • Yum (NYSE: YUM) China Sales Jump in Q1, Boosted by KFC (English article)
  • Evergrande Taobao Soccer Club Posts Nearly 1 Bln Yuan Loss, Costs Rise 50 Pct (Chinese article)
  • ZTE (HKEx: 763) Under New Leaders Eyes Return to Top 3 China Smartphone Brands (Chinese article)
  • Latest calendar for Q1 earnings reports (Earnings calendar)