China Mobile (CHL
) is holding revenue-sharing talks
with Tencent (TCEHY.PK
) over the heavy traffic volumes generates by the latter's apps, claims a Chinese telecom ministry official. Media reports have indicated Tencent accounts for 40% of the data traffic seen by CHL's largest subsidiary, but a much smaller portion of its data revenue. With CHL's ARPU below $11
, such revenue-sharing deals could be crucial to the carrier's ability to finance its 3G/4G investments as data traffic soars.