Wireless Leaving Land-Lines in the Dust in China

Not surprisingly, China’s wireless telecom carriers are growing by leaps and bounds, far more rapidly than fixed-line operators. Any country developing as rapidly as China cannot wait for the old technology. In fact, wireless telecoms are leading the way for huge economic development throughout Asia, the Middle East, and South America. But, in China’s case, the growth is nothing short of spectacular. Investment in China Mobile, the major wireless carrier in China, is one of the surest bets in the midst of China’s unprecedented growth. And, safer still, is to buy shares of FXI which bundles the best of China and where China Mobile is the ETF’s largest holding.

Not surprisingly, China’s wireless telecom carriers are growing by leaps and bounds, far more rapidly than fixed-line operators.  Any country developing as rapidly as China cannot wait for the old technology.  In fact, wireless telecoms are leading the way for huge economic development throughout Asia, the Middle East, and South America.  But, in China’s case, the growth is nothing short of spectacular.  Investment in China Mobile, the major wireless carrier in China, is one of the surest bets in the midst of China’s unprecedented growth.  And, safer still, is to buy shares of FXI which bundles the best of China and where China Mobile is the ETF’s largest holding. 

 

The Wall Street Journal reported that China Mobile increased its net profit in the first three quarters of this year by 30%, compared with only 1.8% for the country’s land-line operator, China Telecom.  The clear differences in growth are attributable not only to switching by users (which is happening), but to the company’s reach into rural provinces and to new users who never had fixed line service.  China Mobile reported adding over 6 million new customers in September alone, up from only 5.5 million in August, and now has 350 million subscribers in all.

 

China Mobile is a force of nature, underpinning much of the Chinese surge.  Its track record is now established, and the size of China’s population, including many without any service, promises to continue to fuel this company’s extraordinary growth.  Again, I find FXI a particularly attractive vehicle to invest in China Mobile.

 

 

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Comments

  • Bob Hume

    October 24, 2007

    Wireless leapfrogged fixed line in Italy, Spain, Portugal and the entire emerging markets. It isn't a surprise at all that the same thing would happen in China.

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