China Mobile Faces Intense Market Competition

China Mobile said its operating revenue climbed 5.7% year-on-year in the first quarter to reach 134.7 billion Chinese yuan (21.8 billion US dollars). That marks a slowdown from 2012 when group revenue rose 6.1% across the year. In the first quarter, average revenue per user fell to 63 yuan (10.2 dollars) from 71 yuan in the previous quarter, as it added a further 16 million connections taking the total to 726 million.

China Mobile said: "Faced with various difficulties and challenges arising from the increasing mobile penetration rate, unprecedentedly intense market competition and more apparent substitution of traditional communication business by new technologies and new businesses, the group persisted with the mantra of ‘‘customers are our priority, quality service is our principle’’."

It added: "Wireless data traffic in the first quarter of 2013 increased by 1.6 times compared to the same period of last year. Key businesses, such as Mobile Mailbox, Mobile Reading and Mobile Video, have maintained a favourable growth momentum." source: China Mobile statement