Page 40 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
34
Financial Review
RMB2.5 billion in 2012, and the leasing fees for Internet ports also
increased as a result of the development of mobile Internet business. In
2012, leased line expenses as a percentage of operating revenue was 1.8%,
showing an increase from the previous year.
Interconnection
Due to the growth of interconnection voice usage volume, interconnection
expenses in 2012 increased to RMB25.1 billion, representing an increase
of RMB1.6 billion from the previous year. However, interconnection
expenses as a percentage of operating revenue remained stable as
compared with the previous year.
Depreciation
In order to maintain the leading position and competitive advantages in
respect of its network capability and quality, support the growth in
customer base and business volume and promote the rapid development
of the mobile Internet business, as well as reserve certain resources and
capabilities for future sustainable development, the Group continued to
invest in network construction and optimization, which led to a
corresponding increase in depreciation expenses in 2012 by
approximately RMB3.7 billion compared to the previous year. The
Group’s high quality network provided a fundamental platform to retain
existing customers and develop new customers, support the healthy
development of its businesses and maintain its favorable financial results.
In addition, the Group is committed to rational investment, sustainable
healthy development in the future, ongoing optimization of capital
expenditure structure, enhancing centralized procurement and promoting
best practices. The Group carefully considered the cost-effectiveness of
its capital expenditure and investments, realized the advantages of
economies of scale and ensured favorable returns on its investments.