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‘China Mobile is set to become a cash machine’: Riches lie in store as carrier readies for 4G but rivals still playing catch-up

Company eyeing nationwide roll-out of 4G infrastructure whereas other players targeting affluent cities as they slowly close the gap

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Some analysts expect China Mobile will record a 16 per cent increase in year-on-year net profit for the 12 months to December as it nears the end of its three-year, 4G-led turnaround.Photo: Reuters

China Mobile, the world’s largest wireless network operator by subscribers, is poised to drive up its profits this year as the company marks the final stage of its rapid 4G infrastructure roll-out across the country.

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Analysts said China Telecom, which recently lost its chairman due to a graft investigation, and China Unicom would not fare as well, but are expected to close the gap with China Mobile on 4G coverage in urban areas.

“China Mobile is set to become a cash machine as capital expenditure falls and earnings accelerate,” said senior analyst Chris Lane, lead author of Bernstein’s telecommunications industry forecast published on Tuesday.

Bernstein estimated that China Mobile will record a 16 per cent increase in year-on-year net profit for the 12 months to December.

“This year will represent the final phase of their three-year, 4G-led turnaround,” Lane said.

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