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China is the largest mobile phone market in the world!

Jan. 11, 2011 9:02 AM ET
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Seeking Alpha Analyst Since 2010

Amico Games is a subscriber based interactive entertainment company with over 28 million registered users that develops Java™ technology for massive multiplayer role playing online games (MMRPOG) for 3G telecommunication networks in China. The company developed some of China’s earliest mobile phone ...More multiplayer games, was the first Chinese company to cooperate with Nokia and was the first company to provide multiplayer games over the WAP platform of China Mobile.

 China is the largest mobile phone market in the world.  With mobile revenue growing faster than fixed-line, China’s telecommunication providers are rolling out 3G networks and providing value-added services such as mobile phone gaming to capture market share. 


PRC Mobile Phone and Value Added Services Industry Statistics

According to data released Tuesday, July 20, China Telecom had a total of 7.2 million 3G users as of the end of June.  This is only slightly lower than the 7.6 million users reported by China Unicom, but the latter has twice as many 2G subscribers, a much bigger base to find 3G converts.  China Mobile has by far the largest 3G user base, with 10.5 million users as of the end of June.  Altogether, China now reports 25 million 3G users, or a paltry 3% of the total mobile user base.  http://quicktake.morningstar.com/Stocknet/san.aspx?id=344545


Interim Highlights from China’s Big Three Mobile Telecommunications Providers


1. China Mobile (CHL) 2010 Interim Results

          Value-added business revenue increased 13.4%, contributing 29.5% of total revenue

          3G customers exceeded 10 million

          Mobile Internet access is growing rapidly, is a key growth driver, contributing 65.7% of value-added business revenue growth

          Mobile gaming paying users of proprietary games exceeded 3.5 million www.chinamobileltd.com/ir.php?menu=2


2. China Telecom (CHA) 2010 Interim Result

Subscribers (Mil)                                             2009.12           2010.6             Change

Access Lines in Services                                 188.56             181.07             -7.49

Mobile Subs                                                    56.09               74.52               18.43


Revenue Breakdown (RMB Mil)                   1H2009           1H2010           Change

Wireline                                                           86,552             82,458             4.7%

 Voice                                                              41,060             32,915             -19.8%

Data                                                                42,567             46,514             9.3%


Mobile                                                             16,002             25,094             56.8%

Voice                                                               9,051               14,102             55.8%

Date                                                                 3,763               8,668              130.3%                                                           

          Mobile revenue grew 56.8% year yoy

          Mobile Data growing rapidly:   Mobile Data/Mobile Revenue Growth 34.5%

          3G Subscribers grew 76.4% from 2009.12 to 2010.6



3. China Unicom (CHU)                           1H2009           1H2010           YoY%

Operating Revenue (RMB Mil)                      76,319             82,113             7.6%

Mobile                                                             34,879             41,046             17.7%

Fixed-line                                                        41,084             40,109             -2.4%


Adjusted Service Revenue                             74,230             79,103             6.6%

Mobile                                                             34,194             39,090             14.3%

Fixed-line                                                        39,908             39,476             -1.1%


For more information about Amico Games please visit www.amicogamesus.com

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