China Mobile profit up 1.5 percent

China Mobile Ltd., is China’s one of three major state-owned phone carriers. It confirmed its profit rose 1.5 percent in the first half, dented by fierce competition and the costs of adapting to new technologies.

It earned 62.2 billion Yuan ($9.9 billion) in the first half. Revenue rose 6.6 percent to 266.5 billion Yuan ($42.3 billion).

China’s state-owned phone carriers have been squeezed by intense competition and the high cost of rolling out technology to support smartphones, tablet computers and other products.

Chairman Xi Guohua stated “We faced a number of severe challenges including the increase in mobile penetration, intensified competition, as well as the impact of new technologies and services that are replacing traditional communications services.”

China Mobile, the world’s biggest phone carrier by number of subscribers, said it added 33.5 million mobile accounts in the first half, bringing its total customers to 683 million.