BEIJING: World's largest mobile operator by subscribers said Tuesday its net profit rose by 1.8% year-to-year over the first nine months of 2009. The time may seem ripe for China Mobile to look overseas for expansion, but not every Chinese company is anxious to buy up the world. It isn't surprising some are hoping for more excitement from China Mobile. It's the kind of mundane performance that investors have come to expect from China Mobile lately. An industry reorganization last year means it's facing stiffer competition in China; so its share of new subscribers is subsiding, while the average revenue it generates from each user is stagnating. Such circumstances have moved other telecom operators to look overseas for new opportunities -- Bharti Airtel's bid for MTN being a recent example. Add to that a $37.5 billion war chest, and it's little surprise that the same intentions are assumed of China Mobile. But it's unlikely China Mobile will prove so bold. Past experience is one reason. China Mobile's 2007 acquisition of Pakistan's Paktel hasn't added much to the company's bottom line, and has proved a difficult cultural fit to boot. Regulatory barriers make forays abroad difficult too. China Mobile is actually trying to buy a stake in Taiwan's FarEastTone, but it seems unlikely Taipei will let that pass. Few markets offer both low political barriers to entry and growth significantly faster than China Mobile's home base. The company has enough to do at home anyway -- defending its 73% share of the Chinese mobile market by subscribers, rolling out 3G technology, and battling the coming release of Apple's iPhone -- with its own, unimaginatively titled Ophone. None of that is terribly exciting. But in China, thrill-seeking investors can find plenty of alternatives
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