Rumor: China Mobile Branch Falsifies KPI Data

CCID, 6/11/12

A China Mobile (NYSE: CHL; 0941.HK) employee recently claimed on their microblog account that the county-level operator subsidiary at which they work had falsified new subscription figures in order to meet key performance indicator (KPI) targets, falsely claiming single-day activations of 2,000 new SIM cards for one day in late May. Saying that higher levels of the operator examined figures closely, the employee explained that the county-level subsidiary fleshed out false activation data by placing at least one call and sending six SMS messages per day. Reportedly, the county-level subsidiary used cheap "shanzhai" handsets in order to avoid suspicion over handsets reporting identical IMEI numbers.

The company has ordered an investigation into the allegations.

Keywords: scandal mobile subscribers China Mobile wireless CHL 0941.HK

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