China Mobile (CHL)

China Mobile (CHL), the largest wireless carrier in the world, continues to deliver healthy operating results as evidenced by strong subscriber accretion in 2008. As we approach the 3rd and 4th quarters of 2009, our opinion remains firm that the new competitive entities will face unanticipated challenges deploying and advancing services to levels and coverage delivered by China Mobile.

Accordingly, we assess that successful expansion into low-penetration rural regions of China coupled with aggressive 3G TDSCDMA service deployments in 2009, and customized mobile value-added services establish China Mobile as the dominant mobile provider, far ahead of its nearest competitors. Additionally, a strong balance sheet, strong free cash flow and sustainable dividends facilitate the company's efforts to weather economic volatility.

We maintain our Outperform rating even as we factor-in potential impacts of a more competitive landscape and a comparatively weaker Chinese economy though the end of 2009.

China Mobile (CHL) : FULL ANALYST REPORT

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