When China Mobile, the world's largest telecom operator by subscribers, reported its slowest interim profit growth in 12 years last week, investors were underwhelmed – especially as management warned that margins would remain under pressure.
Part of the former monopolist's troubles is the intensified competition that has come with the government-ordered industry restructuring last year, which made China Telecom and China Unicom rivals.
But that does not mean China Mobile's two smaller rivals, set to report today and tomorrow, will present a drastically different picture. Although they have brighter prospects for gaining market share, China Mobile's drop in average revenue per user and the downtrend in earnings growth is a taste of what is in store for all three.