China Mobile raises capital spending 49pc
Mainland telecoms giant to lift expenditure to 190b yuan amid intense competition from rivals, as it prepares for roll-out of 4G services
Telecommunications giant China Mobile will increase capital expenditure by 49 per cent to 190.2 billion yuan (HK$237 billion) this year, from 127.4 billion yuan last year.
The world's largest wireless network operator is facing intense competition from other traditional telecommunications operators, as well as from internet firms that provide voice calls and short messaging services.
China Mobile will continue building its mobile communications networks and enhancing transmission network capability.
The company built a trial fourth-generation (4G) network in 15 mainland cities with about 20,000 base stations last year and plans to extend it by adding more than 200,000 base stations this year.
China Mobile will spend 41.7 billion yuan, or 52 per cent of its network spending, on developing its TD-LTE 4G network. Its state-owned parent has been shouldering the construction costs in the past but is now shifting it to the listed company as it waits for regulators to issue 4G licences.