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$58.94 -1.78 (-2.93%)
8/21/2008 4:01 PM

China Mobile Ltd. (ADR) (CHL)

CAPS Rating:
*****

The Company provides a full range of mobile telecommunications services in all thirty-one provinces, autonomous regions and directly-administered municipalities in Mainland China.

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7

Avatar TaiPan07 (91.44) Submitted: 12/28/06 1:49 AM : Outperform Start Price: $42.50 CHL Score: 48.93

The real opportunities for Asia telcos are likely to be in the developing economies of China and India.

*1.5 billion people in rural Asia with china and India accounting for 90% of the total. This is an opportunity and a challenge. The challenge being that covering rural areas is expensive and mainly unprofitable.

*Urbanisation is relatively low in both countries but expanding rapidly. Urbanisation drives the demand for communication services higher and the costs lower.

*Real incomes are rising

*The costs of equipment and handset prices are falling.

China Mobile

China Mobile is the dominate player in the Chinese market and claims that it's network can reach 98% of the population. 3G licencess are due to be issued in 2007 (in time for roll out before Olympics) and China mobile is well positioned. China mobile has had a great run this year and the valuation does not look cheap but this is a growth story.

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