China Mobile Plans Major 5G Expansion to Strengthen Network and Revenue

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China Mobile, the largest mobile carrier globally by subscriber count, is implementing an ambitious expansion of its 5G infrastructure. The company aims to significantly boost its network by installing 340,000 new 5G base stations, pushing the total number close to 2.8 million. This substantial endeavor aligns with China’s broader goal of surpassing 4.5 million base stations in the near term, supported by strategic governmental policies and substantial financial investments.

As of the end of last year, China Mobile’s subscriber base had exceeded one billion, reflecting a marked growth in its 5G customer base, which rose by 18.7% to 552 million users. This segment now represents 55% of the company’s total user base. However, despite the increase in subscriptions, the average revenue per user saw a slight decline to CNY49.30 ($6.80). Monthly data usage among users remained consistent at 15.9GB.

Financial Performance and Strategy

Financially, China Mobile experienced a modest gain, with net profit increasing by 5% to reach CNY138.4 billion, and operating revenue growing to CNY1 trillion. The company’s revenue is well-diversified, encompassing mobile services, home broadband, enterprise solutions, and new business ventures. While there was a slight dip in mobile service revenue, other segments, particularly home broadband and enterprise services, demonstrated substantial growth. Notably, new business revenue also saw a significant uptick, contributing positively to the overall financial landscape.

China Mobile has also been proactive in advancing its technological capabilities, implementing 5G-Advanced technology across various cities. By the end of the previous year, the company had established over 2.4 million 5G base stations and successfully built the first large-scale commercial 5G-A network. This move has enabled RedCap coverage on a national scale and delivered gigabit broadband service to approximately 480 million households.

Future-Proofing Telecommunications Infrastructure

In partnership with the Chinese government, China Mobile is at the forefront of advancing the nation’s telecommunications. The Ministry of Industry and Information Technology has emphasized the vital role of the 5G revolution, detailing plans to pilot 10-gigabit optical networks. Additionally, there are focused efforts to beef up computing infrastructure to meet increased demands for artificial intelligence technologies.

This comprehensive growth and the strategic efforts behind it demonstrate China Mobile’s commitment to boosting the nation’s telecommunication capabilities. By aligning with national objectives, the company aims to significantly improve connectivity and strengthen technological infrastructure. This dedication ensures that China remains competitive in the global telecommunications sphere, setting a standard for others.

The main goal is to advance China’s technological capabilities and connectivity. China Mobile’s strategic initiatives, supported by substantial investments and policy backing, are charting a course for a highly connected, advanced future. This aligns both national and corporate aims, enhancing the network and increasing revenue potential.

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