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User spending boosts China Mobile

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Nine-month earnings at world's largest carrier in subscriber terms up 25pc

China Mobile (Hong Kong), the world's largest wireless carrier in subscriber terms, said nine-month profit rose 25 per cent, driven by better average spending by users and higher data contribution amid a less competitive operating environment.

Profit rose to 46.13 billion yuan from 36.87 billion yuan a year earlier, according to China Mobile's website.

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Operating revenue soared 21 per cent to 212.7 billion yuan, on the back of a 39 million net increase in new subscribers, leading the mobile carrier to reach 287.2 million users at the end of September.

China Mobile's operating performance was in line with market expectations.

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The result 'was no surprise to the market', said a telecommunications analyst at a local brokerage. 'Earnings will continue to pick up steadily in the coming two years mainly because of the company's market power, with up to 80 per cent market share before the introduction of 3G services.'

Third-generation services, which allow faster downloads of video and other data, are likely to start in late 2008, he said.

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