Supersized Chinese wireless service provider and Motley Fool Global Gains recommendation China Mobile
Growth at the massive wireless carrier continues to come from more rural markets in mainland China. While the company blows away competitor China Unicom
With a market that is still far from saturation, China Mobile isn't battling in a cutthroat environment such as the U.S., where AT&T
And rising churn is a concern as China Mobile moves deeper into the market. In the first half of 2007, monthly subscriber churn was 2.72%, compared with 2.54% in the same period last year. While 20 basis points doesn't sound like much, when applied to a massive subscriber base of more than 330 million, every point counts. This churn level on a largely prepaid base is still within an acceptable range, though, when compared with other carriers around the world.
Overall, China Mobile is developing quite well, considering the massive operation it manages. And the exceptional growth in value-added services shows that this giant still has room to grow.
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Fool contributor Dave Mock has a hard time imagining all the tea in China. He owns no shares of companies mentioned here. Dave is the author of The Qualcomm Equation. Vodafone is an Inside Value recommendation. The Fool's disclosure policy won't take sides in any spat between spouses, even when it's obvious who's wrong.