Page 31 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
27
Business Review
Capital Expenditure
Investing for the long-term, the Group adopts a forward-looking approach to investment planning. The Group pursues Four-
Network Coordination to achieve balanced development of its network capabilities. It steadily builds up infrastructure
resources and continues to enhance network transmission capabilities. Investments have been focused on developing
mobile Internet and Internet of Things, fostering new business growth drivers and continuously promoting centralization. To
adapt to the emerging trends under the new industry landscape and to bode well in business growth and competition, the
Group’s scale of investment will be maintained at a rational and essential level, so as to enhance overall competitiveness and
ensure efficiency and return of investment.
The Group’s capital expenditure for 2012 was RMB127.4 billion, mainly expended on the construction of mobile
communications networks (44%), transmission (28%), business development (6%), support systems (8%) and buildings and
infrastructure (11%). Capital expenditure for the Group for 2013 is budgeted at RMB190.2 billion, of which 42%, 31%, 6%, 6%
and 13% will be expended on the construction of mobile communications networks, transmission, business development,
support systems and buildings and infrastructure, respectively. In 2013, the investment in mobile communications networks
includes the expenditure of TD-LTE network, taking up 22% of total capital expenditure. The Group will assume investments
in TD-LTE moving forward.
Future Outlook
Looking to the future, the Government has slated a Chinese way to new industrialization, informatization, urbanization and
agricultural modernization, which will provide ample scope for informatization to penetrate various areas. With the arrival of
the mobile Internet era, information services are being embedded in everyday life and across various industries. “Mobile
changes life” is becoming a reality. The World is recalibrating to next generation mobile communications. In addition, the
accelerating proliferation of smartphones will create space and opportunities for the Group’s development. The Group will
capitalize on such opportunities. It will actively transform its strategies, move fast, align structure and promote
entrepreneurship and innovation to achieve sustainable and healthy development.