Fitch moving profitability

Fitch Ratings said on 16th China Mobile's revenue growth and profitability in the future is expected to be under the influence of severe competition and OTT services to other telecommunications companies.

OTT is the operation of services on the Internet and its providers do not need to build a physical network, but rather relies on the operators operate Internet, such as familiarity with micro-, QQ, Skype and other services.

Fitch believes that while the expected sustained growth for the 3G service in the first half of 2013, but because the profit margins are generally lower than those of traditional voice services data services margins, operating cash flow remained stable. Fitch estimated that China Mobile's 3G revenue in the first half of this year rose 96%, which would offset the competitive alternative business voice and data led to its decline in voice services and SMS revenues.

However, Fitch is expected within the next two to three years, China Mobile users and service revenue market share will continue to gradually decline. China Mobile's earnings growth will slow, and earnings replaced by OTT increased competition facing the pressures of. The first half of 2013, China Mobile gained from traditional voice and SMS services of its gross 69%, this plate can get higher profits but also face greater risk of replacement.

Fitch believes that mobile speed get TD-LTE 4G technology licences will reduce it vulnerable in the field of mobile data. 3G has made the poor business development company of China Mobile started to lose some of the high-end to mid-tier mobile users.

A few days ago, issued by the State Council to promote consumer information policies, including those issued prior to the end of 2013, 4G license, as well as speed up the TD-LTE development dvr
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