China Mobile rings up higher profit

China Mobile, the world's biggest wireless network operator, posted a 1.4 per cent gain in net profit for the first three quarters year-on year, as subscriber numbers grew and greater wireless data traffic helped stem declines in average per-user revenue.

"China Mobile is benefiting from its large user base, which gives the company a favourable scale effect," Huang Meng, an analyst at market research firm Analysys International, said.

China Mobile had 683.1 million mobile subscribers at the end of June, or 65 per cent of the total mobile market.

That subscriber base grew by 15.4 million to 698.5 million in the third quarter. The total included 75.6 million users of its high-speed, third-generation service, which gives smartphones faster access to the internet.

Huang said growth in China Mobile's user base slowed in the third quarter and the carrier could face a tougher challenge from its two rivals in the fourth quarter.

"The near-term future for China Mobile is not all that bright. China Unicom and China Telecom may develop faster than it does," Huang said.

He expected the two rival carriers to be more aggressive in luring new users.