‘Based on 2Q-2013 year financial results, China Mobile snagged the top position for most profitable mobile carrier’.
These data of ABI Research, captured by Connectikpeople demonstrate
that the Chinese market rapidly gains in maturity. In this dynamic, we can
observe that, based on 2Q-2013 year financial results, ‘China Mobile snagged
the top position for most profitable mobile carrier’ followed by Verizon Wireless and AT&T
respectively; the fourth and fifth positions were taken by European carriers
with global operations,
Telefónica and Vodafone.
Based on another angle, we can also observe that, ‘the top 5 mobile
carriers represent 49% of total gross profit generated by the 50 largest mobile
carriers tracked by ABI Research’.
Connectikpeople has also observed that, while China Mobile is the most
profitable mobile carrier in aggregate, quarterly gross profit per subscriber
is only US$ 16.40, placing the carrier in 48th place. Verizon
Wireless is 4th with US$ 71.80 and AT&T 5th with US$
60.40.
‘’As the proportion of revenue from 3G, and then 4G mobile data services
increases, this will boost China Mobile’s overall profitability. Steadily
rising affluence in the general economy and subscriber upgrades should boost
China Mobile. In the case of Verizon and AT&T, they have been able to boost
revenues by targeting not just consumer 4G services, but also enterprise and
Machine-to-Machine (M2M) services. For example, Verizon is focusing on
certifying new M2M solutions for use on its wireless network through partner
program in healthcare IT industry, while AT&T has introduced home security
and automation services’’. Said ABI Research.
Finally Connectikpeople has also observed that, another effective strategy
to boosting profitability is converting prepaid subscribers to postpaid. ‘’Mobile
operators are beefing up their postpaid smartphone devices portfolio,
introducing postpaid centric applications and offering multi-device shared
plans to entice prepaid subscribers to make the conversion’’.
