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China Mobile to Increase Handset Subsidies, Lower Capex

Ccidcom.com, 3/20/09

At China Mobile's (NYSE: CHL; 0941.HK) 2008 financial results conference, Xue Taohai, financial director and deputy general manager of the company, said that for each of the past few years China Mobile has managed to keep handset subsidies under RMB 8 bln. Last year, the company provided RMB 7.4 bln in handset subsidies to 12 mln subscribers, and this year the company expects subsidies will be over 60% higher, up to a total of RMB 12 bln.

This year, China Mobile also expects capital expenditure to reach RMB 133.9 bln, slightly lower than last year's RMB 136.3 bln, and this figure will continue to decline in 2010 and 2011 to RMB 131 bln and RMB 110.5 bln respectively. 76% of this year's capex was invested in 2G and 3G shared resources, while 24% was dedicated to 2G networks. 30% of capex was spent in urban areas and 70% in rural areas.

Keywords: 0941.HK 3G capex China Mobile CHL rural wireless Xue Taohai subsidy mobile phone

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