China Mobile Struggling to Maintain ARPU


The unprecedented growth in China mobility user base and adoption of high speed enabled data services. The growth attracted many OTT players to target the new service hungry user base and started floating many OTT application attached with attractive value proposition. This prompted exodus of China Mobile subscribers from OnNet to offnet service offering from OTT players. During Q3 2013, China Mobile profit fell by 9% even after stellar performance in the 3G subscriber base adoption and data usage. The average ARPU for the first nine month is hovering around $10.9 post bump in higher 3.1% usage of voice. China is considered as home of many innovations in the mobility segment and OTT players were encouraged by biggies to attract subscribers from competitors. Now these OTT players with their free offering are hurting their bottom line. It would be increasingly difficult for China Mobile to shore up their VAS revenue in the current environment of competition from OTT players without twisting their service offerings.

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