STLPlace

Tough Times in Store for China Mobile

I put up disclosure when submitting article but it did not show up. Anyway I sold my CHL shares this past week.

CHL probably is still the best China telecom/wireless play, but as I said it faces two problems: the economy and the immature 3g standard. More update on the TDMA last week: CHL decided to rent the TDMA network from its parent (China Mobile Group). This is typical, just like China Mobile Group gave 500 M Yuan to China Telecom a short while ago. In other words, I am not too worried about the Capex of CHL, as its parent will likely to foot the TDMA bill, and also CHL has done aggressive depreciation on its GSM networks. But all this did not solve the key problem for CHL: how to win the 3G war in China using TDMA?

CHA maybe good for a trade, but it also has its share of problem. Note CHA was the parent of China Mobile 10 years ago, it got a lot legacy issues, now it got the weakest network (CDMA) from China Unicom. I would wait and see how the Sky wing campaign turns out.

On Jan 08 08:27 AM ArtfulDodger wrote:

> Who cares about disclosure? Especially when authors don't tell you
> where they bought in?
>
> I'd rather know the author's conclusion? Would he buy CHA or not?

>
>
> A very weak article!

Chinese Government Gives China Mobile Revenues to China Telecom

To clarify some doubts regarding "why this matters to CHL shareholders".

Suppose a grandfather wanted give $500 to his elder son, but he does not have any money. So he asked younger son for $500. According to the tribal tradition, son can not say no to father. So the younger son agreed, but he does not have any money either. He knows his son (CHL) has $500 at bank. So he asked CHL...