China’s Mobile Maestro
Sharing some text from an interesting article about China Mobile (CHL) which appeared at Fortune Asia Edition. Interesting commentary about their many masters, marketing efforts and the CEO’s management style and preferences of the CEO. Also note how investors are concerned about expansion abroad. As its first major acquisition abroad, CMPak has strategic significance for China Mobile.
China Mobile, the world’s largest wireless company, has 330 million subscribers, thousands of shareholders, and one Communist Party to please. That’s not an easy job for CEO Wang Jianzhou.
It has a network of more than 230,000 base stations and is spending furiously to put up more. When you run the biggest mobile-phone network in the world’s most populous country, you operate on a different scale.
In China’s largest cities, where mobile penetration rates match those in the U.S. and Europe, China Mobile offers a dizzying array of non-voice services including Internet search, ringtones, and music downloads. It has struck content deals with domestic and foreign providers, including News Corp., MTV Networks, Yahoo, and the National Basketball Association, and transmits 1.2 billion text messages every day.
In rural China, home to two-thirds of China’s 1.3 billion people, the carrier has launched an aggressive expansion drive, joining with government agricultural bureaus to beam farmers in remote hamlets advice on improving harvests and where to get the best prices for their crops. China Mobile’s wireless network now stretches from Hong Kong to the Himalayas, offering mobile coverage to 97% of China’s citizens. Its signal comes in strong on the Beijing subway, inside Shanghai elevators, in Guangxi rice paddies–even atop Mount Everest.
So far, this breakneck growth hasn’t come at the expense of profit. Far from it: In 2006 the company reported net income of $6.3 billion, up 24% from the previous year, on sales of $35.9 billion. As of early July its shares traded at $59 on the New York Stock Exchange, an eightfold increase since their October 1997 debut, lifting China Mobile’s market capitalization to $234 billion. The result? China, a country where only two decades ago fixed-line phones were a privilege of the Communist elite, now claims the most valuable mobile-phone company in the world.
But running this behemoth is no cinch. Wang, an unassuming 58-year-old engineer who started his career three decades ago as a bureaucrat in the Ministry of Post and Telecommunications, may have one of the trickiest jobs of any FORTUNE Global 500 CEO. It’s hard to imagine another chief who answers to as many masters. First and foremost, he must heed the wishes of the Chinese government, China Mobile’s regulator and its controlling shareholder. Beijing wants China Mobile, which has a 73% market share, to become a global powerhouse, but without beating up too badly on China Unicom, China’s other mobile carrier. Government planners have prodded China Mobile to take an active approach to foreign acquisitions, as it did this year when parent company China Mobile Communications, which Wang also heads, snapped up Paktel, Pakistan’s fifth-largest wireless company, for $460 million.
But investors, who own 25% of China Mobile’s shares, fret that Beijing’s national policy goals threaten the bottom line. They worry that Wang will be encouraged to overpay for foreign acquisitions he doesn’t need, forced to overspend on unproven homegrown 3G technologies less efficient than those already available, and discouraged from seizing opportunities in his home market for fear of becoming too dominant. And then there are all those customers: on the one hand, hip, young urbanites demanding world-class mobile services, and on the other, farmers clamoring for lower prices. How to reconcile these divergent interests? Wang insists he isn’t fazed. “I don’t think it’s so difficult to find the balance,” he says at China Mobile’s imposing headquarters in Beijing’s new financial district. “As head of a state-owned enterprise, my duty is to maximize the value of state assets. As CEO of a listed company, my job is to enhance value for our shareholders.”
Rural customers have far less to spend on mobile-phone services than their urban counterparts and aren’t much interested in music downloads, the latest ringtones, or games. But it turns out they use their phones for voice and text messaging more frequently than anyone imagined. To attract more rural customers, China Mobile has gradually lowered rates, but only to the extent that reductions are offset by increased usage. Average revenue per user–the favorite benchmark of telecom analysts–has held steady at around $11 a month in the first half of this year, down less than two percentage points from 2004, when the rural expansion drive began.
Wang, a fan of Insead management professors W. Chan Kim and Renée Mauborgne, talks about China’s hinterland as a classic “blue-ocean market,” where the company can cast its net widely without worrying about getting tangled up with the nets of rivals. To be sure, the fish are tiny: In many of China’s rural communities, per capita income is less than $50 a month. But China Mobile’s low cost structure assures comfortable margins serving such small fry. In that sense the company’s strategy reflects the wisdom of another popular management guru, C.K. Prahalad, who promises that big corporations capable of serving the world’s aspiring poor will discover a “fortune at the bottom of the pyramid.”
Wang chuckles as he recalls the frosty reception he received from analysts three years ago when he unveiled his rural strategy. “Analysts and investors, managers of large institutional funds, all thought China Mobile’s years of high growth were over,” he says. “They thought we were a good company, but they considered us a big, slow elephant. I went around asking why, and always the answer was this: ‘You can still add to your subscriber base, but from now on all your customers will be low-end users. You’ll run up big capital expenditures to reach them and high operational costs to serve them, but they won’t bring you much profit.’ But I had worked in this industry many years. I knew the numbers. I knew what kind of returns we could see on those investments. I told skeptics, ‘You are absolutely wrong.’”
Wang’s own marketing skills have improved considerably since then. He is arguably the most polished CEO at any of China’s state-owned giants. He speaks English fluently, is well versed in the latest management literature, works at building relationships with global telecom leaders, and has gone to great lengths to meet foreign analysts and investors.
But the pressure on Wang can only increase. Beijing has decreed that China will deploy its own 3G standard, known as TD-SCDMA, to compete with CDMA2000, the dominant U.S. protocol, and W-CDMA, favored in Europe and Japan. They have also vowed to have 3G networks up and running in at least ten cities by next summer, when tens of thousands of athletes, journalists, dignitaries, and tourists descend on China for the Olympics. China Mobile’s parent has been tasked with developing the standard, and China Mobile has been ordered to roll out the service in eight cities. Whether the new standard is ready for prime time remains one of China’s most guarded state secrets. Wang won’t comment, but earlier this year a top official declared TD-SCDMA “commercially mature.”
Analysts remain skeptical, as regulators have been promising a 3G rollout for years. But they are paying close attention because many believe the rollout, when it comes, will occasion an industry revamp. Officials have repeatedly said China’s telecom sector is out of balance. In the wireless segment, China Mobile dominates. And the fixed-line carriers, while big, are far less profitable than the mobile carriers. Among the possible scenarios: The state will break up China Unicom and parcel out its mobile networks to the fixed-line operators, creating two much stronger competitors to slug it out with China Mobile.
Some analysts are betting 3G will be put on hold until after the Olympics, reasoning that Beijing is too proud to roll out TD-SCDMA before it’s perfect. Plans for China Mobile to list shares on Shanghai’s stock exchange–a development expected as early as August–may add to regulators’ aversion to risk. But Goldman Sachs analyst Helen Zhu predicts 3G will be up and running and the industry shaken up well before the Olympics, arguing that it won’t be possible to work the bugs out of TD-SCDMA without loading “substantial numbers of subscribers on the network” and rolling out on a commercial basis.
TelecomPk.Net is a leading source of information and analysis about Pakistan Telecom industry.
[...] China Mobileand other Hong Kong telecom stock peaked recently because of 3G expectations. Telecom stocks also gained after the Chinese regulator said it is relaxing the pricing and other policies in the mainland’s fifth 3G license auction. “Talk in the market that China will issue the 3G licenses soon and restructure the sector drove telecom shares higher,” said Jackson Wong, investment manager at Tanrich Securities. [...]
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Sir,
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regards,
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0300-5545600
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With reguards
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0333-5636232
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H/P # 0333-3852161
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Best regards
Shan Ahmed
0321-5120086
0300-9504887
Rawalpindi
Pakistan
Respected Sir,
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Thanks you,
Ali Raza.
Cell # 0345-7682915
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Regards
Arslan Idrees
0321-4247424
Aslam o alaikum im shahnawaz awan from lahore.i have done i.com . im doing job in u.c.c as a assistant accountant for 2 months. i hear about zong telecom company by news paper. iwant to be a part of ur company. if u have any post for i.com so plz infrom me if it is possible. my phone number is 03444595963. bye .
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Thanking You
Moosa Hilal Haider
Venerated Sir,
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Best regards,
Farrukh Nadeem Cheema
Cell # 0346-6068332
hi sir:
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looking for your reply.
xaib khan
0321-5106388
Dear Sir,
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Recently iam working in a textile group as sales tax officer. Iam also doing MCSE CCNA from CTTC.
My cell numbers is: 0304-2097746
I m working in an IT services provider company. (Karachi Based)
I will be waiting for your nice reply.
Thanking You
Ahsan Iqbal
hi sir.
This is xaib khan,doing MS from qau.i`ve already worked in different companies and in call centres as CSR,thus pretty good at all that.now i wanna b apat of zong telecom.
hope u`ll consider ma for a suitabl position.
regards.
xaib khan
0321-51406388
hi sir.
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hope u`ll consider me for a suitable position.
waiting for your reply.
regards.
xaib khan
0321-5106388
How company can offr jobs to such people, who don’t know where to apply for job. Its blog, not Zong’s HR department.
Respected Sir,
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regards.
khawar ramzan
0345-4352664
lahore.pakistan
Hi,
Sir,
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0321-5825715
Hi,
Sir,
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Hoping for your positive & favorable relpy
0333-6339238
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hello sir/mam
my name Saqib Qayyum. Doing B.A , i want to work ur company.
my number 03327861052
Thanks
Have a nice day&life
BY
sir
i have done my intermediate in Icom. now i am doing my B.com from punjab college and also juggling to find a part time job. I have done english diploma and have a good command on englilsh language.
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Cell No# 03214172678
Respected Sir/Madam
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Cell# 0300-9710391
0345-5936890
Sir,
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Cell# 03018890106
03339119801
Hi,
m workin in a call centre in lahore from the past 2 years n also lookin for a job in a multinational company to secure my future. Hope so dat u would probably gimme a chance to enhance my skills.Thankyou very much
mah contact number is 0300-4883335
0322-7940571
salam,
my name is samra
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waiting for your reply.
my contact number is 0322-5670853
Hi,
How are you, i m very please to hear this that ZONG come in our country , its a big achivementfor our country ,because the present situation in our country no one is willing to invest every one is withdrawn the investment its healthy for ou country . now i m doing M.B.A . i have done my b.com in 1st devision and i want to job in your conmpany so here is more chance to show my abilities so contact me if any vocancy availabel in Lahore.
thanx.
Contact # 03338140646
Hi,
How are you, i m very please to hear this that ZONG come in our country , its a big achivement for our country ,because the present situation is very critical no one is willing to invest every one is withdrawn the investment its healthy for our country . now i m doing M.B.A . i have done my b.com in 1st devision and i want to job in your company so here is more chance to show my abilities so contact me if any vocancy availabel in Lahore.
thanx.
Contact # 03338140646
Respected Sir,
i beg to say that iam from lahore.belong to a middle class family.i wish to join your company for my better future.i have done my intermediate in Icom. now i am doing my B.com from I B L COLLLEGE.SIR i try my best to perform good job.sir give me one chance.thanks alot.
thankfull to you.
Qadeer Ashraf
03214786643
03064006422
Hi sir
My name is Farrukh ijaz and i have done my B.A from a repuitable university.now i m doing llb and waiting for the result of llb part 2.
Objective
I am looking for a challenging role in a progressive and stable environment that will allow for personal advancement and initiatives aimed at higher earning potential.
Profile
I am a confident hardworking and self-reliant team player with the ability to meet deadlines. A self made individual with “can do” attitude.
I want to join your company. You may contact me for any suitable position.
Thanks.
With reguards
Farrukh ijaz
0331-6686320
Dear Sir,
I have don my B.Com and now working in Pace Pakistan Ltd as an accountant from 17-07-2007 up to date. I am very please to be the China Mobil Company in Pakistan. I am very interested to be work in China Mobil Company.
I have strategic academic qualifications, good aptitude, professional experience and am willing to learn and work hard which gives me the confidence to apply for a managerial position in your organization.
I feel that I have the necessary attributes and skills required to work in the company. I lead by example and utilize open communication which I believe helps greatly in fast paced environments. I am a results driven, focused and creative person possessing strong interpersonal and analytical skills who believes in setting targets and not only achieving them, but exceeding them.
I would be very happy and awaiting an opportunity, to sit across your interview panel, to further discuss the prospects of working opportunities you may have to offer.
Kind regards,
Junaid Khan,
0334-4344359
To,
Manager Human Resource,
KARACHI
Sir,
My name is Syed Shafqat Shah. I have done Bachelors in Commerce and 4 years of experience in a wide variety of fields including correspondence, management, customer support, Accounts, Administration, Internet based research and Computer Operations.
Here are some of my skills:
• Verbal and written communications
• Computer proficiency
• Customer service
• Organizing office procedures
In addition to my extensive office experience, I have excellent communication skills. I always maintain a mature, gracious and professional manner when communicating with people, even when difficulties arise.
My experience, Certification in Baking and range of skills make me a suitable candidate for the organization.
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Sincerely,
Syed Shafqat Shah
0300-2960158
respected sir,
my name is salman imran. i am doing ACCA part 2. i want to start my internship in any good company. i need your help in this regard. my contact no is 0333-6728071. hope you reply me soon.
regards
salman imran
I have four year in sind police i have security matter ,so i if u give me a chance i work hard, i done B.A and good comand in english. my cell number is 03349875939
The manager H.R
ZONG network
Pakistan.
sir,
i am MBA(MARKETING) and have a 2 and half year experiance
in sales in the beverage industry as a assistant sales manager.
you can call me on any friday.
THANKS.
sir i have done my bcom from lahore nad now doing the mcom in hailey college of commerec. i want to do job in your company as account officer.so kindly reply me for this. i am vey thankful to you.
The manager H.R
ZONG network
Pakistan.
sir,
I am doing MBA(FINANCE) FINAL SEMESTER from Muhammad Ali Jinnah University,Karachi(PASSING YEAR MAY-2008). i want to do job in your company as “MANAGEMENT TRAINEE”so kindly reply me for this. i am vey thankful to you.
THANKS.
The manager H.R
ZONG network
Pakistan.
sir,
sir i have doneB.TechPass(Electronics) my from NED University of Engineering & Technology, Karachi, from( 2005-2007), specialization in Electtronics.
I want to do job in your company with respect my qualification & experience.
B.Tech Pass (Electronics) from: NED University of Engineering & Technology, Karachi, from( 2005-2007), specialization in Electtronics.
? D.A.E. Three years (Diploma Associate Engineer Electronics) from Aligarh Institute of Technology, Karachi (1998-2001) affiliated with Sir Syed University of Engineering & Technology, Karachi.
? Matriculation (S.Sc in Computer Science Group) from Board of Secondary Education, Karachi Batch (1997-98).
_
COMPUTER SKILLS:
D.I.T.T Diploma in Information & Telecommunication Technology, from Karachi University from (2005-2006).
PROFESSIONAL EXPERIENCE:
? Worked for NED University of Engineering & Technology, Karachi as a “Trainee Engineer” from (2006-2007).
? Worked for AIMTECH UPS Company as an “Assistant Engineer” from (2003-2004).
so kindly reply me for this. i am vey thankful to you.
THANKS.
The Manager H.R
ZONG Network
Pakistan.
sir,
with due respect it is submitted that i have done M.Sc Economics with Finance from The Islamia University of bahwalpur. My CGPA is 3.63 securing 76% marks. I want to join this company. I assure you to work honestly and with determination for this company.
Thanking you in anticipation,
With Regards
Jahanzeb Ahmed
Cell # 0333-6796711
hi…
hoping ur fine…
me just graduate in field of electronics engg. frm COMSATS institute of information technology, islamabad…i want to excel my career wth ZONG …Or CHina mobile………..
plz consider my application,
amjadayub84@yahoo.com
03015192351
Dear Sir,
With respectfully it is submitted that i have done my B.Com from MAO College and I want to do job in your company with respect my experience.
Doing job in K & N’s Foods Pvt Ltd as Admin & HR Officer.
Two years and two months of working experience in “Quick Food Industries”
Admin Officer.
My experience and range of skills make me a suitable candidate for the organization.I look forward to hearing from you soon.
Your truly,
Umair Khalid
Cell # 0321-4302209
Dear Sir,
With respectfully it is submitted that i have done my B.Com from JINNAH College and I want to do job in your company with respect my experience.
doing job Memon group Of Companies.AS A ACCOUNTANT. LAST 3 YEAR
MY experience is suitable for your orginaisation
yours truly
shafqat
I am Associate Engineer in Electronics and Graduate in IT and also done Post Gradute diploma (one Year) in IT and I have 4-year expeience of job in IT and marketing and working in PIA (pakistan Intenational Airlines).
I am available if ur company needs me.
contact# 03335107868
Dear sir,
I am sultan , i m very happy to lounage of zong in Pakistan .I am working in Toyota Moters company as customer Relations Manager. Iwant to be a member of China Mobils.
Regards,
Siltan Ali Abid
Customer relaions Manager
Toyota Sargodha Moters
Sargodha
0483222297
03006023591
Sir,
I am umair ali.I have done telecommunication engineering and now I want to do job in zong.
contact no
03214061770
Dear Sir,
My Name is Muhammad Saeed I and i am very excited to zhong lounched in pakistan Basically i am interested to join the zhong telecommunication.
My Qualification is that i have done B.com. After the completion of B.com I have also done IELTS International Language Testing System from AEO.
My work experience is this i have done work with MCB Bank as internee for 3 Month,s.
After my completion of internship i have done doing job in Medical Transcription as M.T
After the completion of Internship there i have done doing job in LUMS university as DATA ENTRY OPERATOR.
So my all information is in front of your face
i will wait for your postive reply
Regard,s
Muhammad Saeed.
Dear sir,
I did MCS CCNA(continue) & recently working as Internee in Wateen (Wimax Technology),i also have experience in UK base Organization as Coordinator,i want to be the part of your team.
hopes you will consider my request.
Best Regards,
Riaz Ahmad.
Sir,
I did MCS CCNA(continue),Worked as Coordinator in UK base Organization for last two years,now working as internee in Wateen (WimaxTechnology).
hopes you will consider my request.
Best Regards,
Riaz Ahmad
Cell# 923459295299
Sir/Madam,
My name is Musharraf Khan i am very intented to be the part of such organization which is recognized as a biggest company in the Tele communication sector which is non other than China Mobile. i have just finished off my studies from Punjab university & done post graduation in “Marketing” currently i am serving as a Marketing Executive in “TROJANS” Pakistan at their Lahore office. Since China moblile has made the joint venture with Paktel Gsm it has really increased my intrest to be the part of China mobile as i am already the subscriber of Paktel Gsm over the last 1 year. Sir i tender my services for Marketing & HR department, for further details you can contact me at my # 0314-4271889. i will be highly waiting for your kind perusal.
Regards,
Musharraf Khan
contact: 0137-4271889
e-mail: dilse_khan@hotmail.com
Hi,
Sir,
I have done my B. Com&D.A.E(ELECTRICAL). I am intrested to Work with this telecom on reputed post with handsome salary.
My Aim is to join an organization where i can put my energies in efficient way.
Hoping for your positive & favorable repLy
0345-3358899
best regards
M.zohaib
As_salim_O_Alikum
my name is istikhar ahmed. i am the geaduate of FC College Lahore. Now I am doing MSC at GCU Lahore.I am sure your company must be get some talented peoples from pakistan.If you srlrct me as a ur member of team with a part time job inshalla you will get that you want.
ph no__03334147669
slam:
I just wana put my efforts to your industry……………….
Hi,
Sir,
I have done my B. Com (IT).I am intrested to Work with this telecom on reputed post.My Aim is to join an organization where i can put my energies in efficient way.
Hoping for your positive & favorable repLy
Hi,
Sir,
I have done my B. Com (IT).I am intrested to Work with this telecom on reputed post.My Aim is to join an organization where i can put my energies in efficient way.
Hoping for your positive & favorable repLy
03225152499
03325161974