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China Mobile will sharply reduce 2G investment next year

China Mobile will sharply reduce 2G investment next year

(Summary description)During yesterday’s interim results conference, Liu Aili, deputy general manager of China Mobile, said that China Mobile has the confidence to reach a goal of CNY 41.7 billion in 4G investments this year. Material indicates that capital expenditure will maily be used for carrying four networks synergia strategy (2G/3G/WLAN/4G) and improving the capacity of transmission network，as well as developing mobile internet and the internet of things, etc.

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During yesterday’s interim results conference, Liu Aili, deputy general manager of China Mobile, said that China Mobile has the confidence to reach a goal of CNY 41.7 billion in 4G investments this year. Material indicates that capital expenditure will maily be used for carrying four networks synergia strategy (2G/3G/WLAN/4G) and improving the capacity of transmission network，as well as developing mobile internet and the internet of things, etc.

Li Yue, president of China Mobile said that the investment volume depends on the development status. In the long run, China Mobile hopes that it can create value and boost profitability and have a better performance in internet age.

In addition, Liu also pointed out, “China Mobile will have an significant cut in the 2G investment next year, but we will still maintain a certain investment. In the first half of this year, 2G network expenditure only accounted for 4%, namely CNY 7.6 billion.”

Li believed that 2G still has its values for the moment such as internet needs, network quality guarantee, etc. 2G investment could only come to an end five years later after the coexistence of 2G, 3G and 4G.

China Mobile’s 1H2013 capital expenditure was CNY 57 billion among which 35.2% for the mobile Internet and 40.7% for the transmission network construction.

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