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Cellular Clouds Hover Over China

China Mobile Ltd. (Public, HKG:0941), China Telecom Corporation Limited (Public, HKG:0728) and China Unicom Limited (Public, HKG:0762) are all telecommunication companies in China. These companies are fighting for new technologies and cellular clouds in China, the world’s largest economy.

These companies are trying to secure as much of a customer base as their capacity will allow. Capturing new technologies is a key component to staying competitive in the smart phone era. From buying cell towers, to acquiring competitive companies in the same market, these giants are struggling for the bread and butter of communication. All three of these companies went public within 5 years of each other, but as it can bee seen very easily, the company that starts off earlier in China is bound to be the victor.

China Telecom Corporation Limited was originally established in 2002 and listed on the HKEX and NYSE with service areas only in Shangia, Jaingsu, Guangdong and Zhejiang. The company was a hit from the day it came out of the closet. The company had net proceeds from IPO of $1.3 billion. In 2003, China Telecom aquired 6 telecom companies which extended the company’s service to 10 provinces. The company has been aquiring other companies ever since and in 2008 extended its services by acquiring CDMA and launching mobile services. China Telecom Corporation Limited (Public, HKG:0728) has a market cap of $319.68 billion and their stock is currently valued $3.95 per share.

China Unicom Limited was incorporated in February 2000 and was listed on the NYSE and the HKEX. The company merged with China Netcom Group Corporation Limited in 2008. The company also merged with China Network Communications Group Corporation in 2009. The company was granted a licence to operate 3G digital cell business with WCDMA technology in China. The company is involved in fixed-line voice, internet-related services and broadband. China Unicom Limited (Public, HKG:0762) has a market cap of 253.06 billion and their stock is currently valued at $10.74 per share.

China Mobile Limited was incorporated in 1997. The company was listed on the NYSE and HKEX in 1997. The company is by far the leading mobile provider in China. China Mobile is the world’s largest mobile network and has the world’s largest customer base. This company is not going anywhere anytime soon. The company owns 100 percent of its over 30 subsidiary companies that are very large by themselves. In 2009m the company was selected as one of the Fortune Global 500 by Financial Times and “The World‘s 2000 Biggest Public Companies” by Forbes. The company has an A+/Outlook Stable by Standard and Poor’s and an A1/Outlook Positive by Moody’s. Check out the company’s website for more information at http://www.chinamobileltd.com/index.php. China Mobile Ltd. has a market cap of $1.59 trillion and their stock is valued at $79.30 per share.

These 3 companies are struggling between each other to capture any markets that they possibly can and secure new areas of business. China Mobile is clearly the largest cell phone carrier in China, but it is not necessarily an absolute because other companies may be able to secure overlooked market segments. When the Chinese government is tired of these companies getting too big, they are simply going to separate them. The Chinese government now understands that competition is important in a marketplace. These companies in the meantime will try to secure new 4G technologies and anything else that will put them in front of their counterparts.

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