China Mobile expands 4G footprint

China Mobile, the world’s biggest carrier, is expanding its footprint in next-generation 4G wireless technology, launching services in Hong Kong (HK) as it targets high-end Internet users to boost data revenue. The Hong Kong launch on Friday marks a step forward in its 4G ambitions, as the carrier conducts tests aimed at launching the high-speed services in as early as two years in mainland China, the world’s biggest cellphone market. China Mobile is the only carrier in China that does not have a contract with Apple to sell iPhones, and development of its 4G technology could help pave the way for it to sell the US smartphone in the country. Even though the Beijing-based carrier has more than 660 million users -twice the US population -many are low-end 2G users. China Mobile offers 3G services, but these use an inferior homegrown technology called TD-SCDMA that Apple, for instance, does not support. Against this backdrop, China Mobile is upgrading its network as it needs to sell more smartphones to boost data revenue, which is growing more than voice revenue. China now has over a billion mobile phone users, but many just make phone calls and send text messages. “China’s income level is still low. For smartphone (usage) to pick up, China’s operators will need low-cost smartphones,” said Kelvin Ho, an analyst with Yuanta Securities. “They can’t totally rely on iPhones because at the end of the day, the high-end market in China may not be very large. You will have to serve the large mass market.” China Mobile, which competes with China Unicom and China Telecom Corp Ltd, is set to announce first-quarter results later on Friday. It is expected to report a net profit of 28.2 billion yuan ($4.5 billion), according to a poll of three analysts. On Friday, China Mobile’s Hong Kong unit launched its 4G services in the Chinese territory, allowing cross-border data sharing plans when roaming in China. Subscribers who sign up for new 3G and 4G data plans with China Mobile in Hong Kong as of on Friday will be able to travel to China to use mobile data services for a fixed monthly fee, reducing data roaming expenses, the carrier said in a statement.