China Wireless Subscribers Tops 334 Million in 2004

[bobolito]

China tops 334 million mobile phone subscribers in 2004

2 hours, 29 minutes ago


BEIJING (AFP) - The number of mobile phone subscribers in China topped 334 million in 2004, up 65 million from 2003, according to the Ministry of Information Industry.

The number of fixed-line subscribers reached 316 million last year, up 53 million from 2003, Xinhua news agency reported, citing figures from the ministry.

China's mobile subscriber numbers are expected to grow to 402 million this year, the agency reported last month. Such numbers would mean that nearly one out of every three Chinese citizens would have a mobile phone.

Revenue in the telecommunication sector reached 520.5 billion yuan (62.9 billion dollars) in 2004, up 1.07 percent from 515 billion in 2003.

That accounts for over 90 percent of the total income from the telecom and postal services, the agency said.


http://story.news.yahoo.com/news?tmp...ecomcellphones

[ehcruzan]

There's a great place to test the effects of cell phone radiation.

[bobolito]

That's more subscribers than the entire population of the US!

[ehcruzan]

It's a carriers' dream! BTW, am I correct in saying they are larger than Vodafone?

[bobolito]

Yes, they are...

[Bugwart]

I believe that it is safe to say that both China Mobile and China Unicom are individually larger than Vodafone.

[GoodmanR]

Originally Posted by Bugwart

I believe that it is safe to say that both China Mobile and China Unicom are individually larger than Vodafone.

In subscribers yes, in revenue (and earnings) no.

Adding to that....Vodafones market cap is more than twice as large (almost 3 times) as china mobile and china unicom combined.

[Bugwart]

I agree that this is true today.

But an argument could be made when comparing revenue, that China Mobile's and China Unicom's earnings are in undervalued RMB, whereas much of Vodafone's revenue is in overvalued Euros and GBP. Based on history as well as economic realities, it is almost a certainty that over time, most currencies (with the possible exception of the SFR) will readjust. Logically this would cause the number of RMB per Euro (or GBP) to decrease.

Knowing that this is almost certain to happen, whould it be wiser to buy and hold US ADRs of Vodafone or one of the two Chinese service providers?

[GoodmanR]

Originally Posted by Bugwart

I agree that this is true today.

But an argument could be made when comparing revenue, that China Mobile's and China Unicom's earnings are in undervalued RMB, whereas much of Vodafone's revenue is in overvalued Euros and GBP. Based on history as well as economic realities, it is almost a certainty that over time, most currencies (with the possible exception of the SFR) will readjust. Logically this would cause the number of RMB per Euro (or GBP) to decrease.

Knowing that this is almost certain to happen, whould it be wiser to buy and hold US ADRs of Vodafone or one of the two Chinese service providers?

The difference is too large for a floating of the Remnimbi, which isn't happening anytime soon, to change the situation. I do agree though, that if you look a decade or two down the line, China is clearly a good market.

Working where I do...I wouldn't but China Unicom or China Mobile, neither are great companies, and both are run quite poorly from my understanding. They may be attractive takeover targets which would really be the only merit in holding them, but whether the Chinese Govt. will allow that to happen is yet to be seen. I probably wouln't buy them although I might hold them if I already had shares.