China mobile opens online store for wireless software

Hong Kong
The Hindu Business Line
China Mobile Ltd., the world's biggest wireless carrier by users, opened an online software store for handset users to boost sales of non-voice services.

The Mobile Market Web site will let users purchase and download software provided by external developers, according to a statement faxed by the Beijing-based company today.

China Mobile, with more subscribers than the combined populations of the US and Japan, aims to promote demand for its third-generation service, which allows faster Web browsing and music downloads on mobile phones.

The company's customer growth has slowed this year as competition from China Telecom Corp. and China Unicom (Hong Kong) Ltd. intensifies.

China Telecom and Unicom are both trying to target the higher-spending users with their 3G services, and China Mobile is trying to counter that, said Alex Lee, an analyst at Tai Fook Securities in Hong Kong, who rates the stock hold. The online applications store isn't going to turn into a big contributor immediately, as the 3G user base is still small.

China Mobile fell 5.4 percent to close at HK$84 in Hong Kong trading, trimming its advance this year to 8 percent. China Telecom's shares have jumped 35 percent in the period, while Unicom's stock has gained 15 percent.