China Mobile (H.K.) Ltd., the world’s biggest mobile phone company by users, said its customers spent 16 percent less in the first half and the trend will persist as price competition intensifies with China Unicom Ltd. and other rivals. Net income fell in the second quarter from the previous three months for the first time since China Mobile went public in 1997, as discount services from Unicom and two fixed-line carriers drove down rates.

The company may need to return more cash to shareholders to placate investors concerned about slowing growth in China’s $30 billion a year cellular market, some analysts said.

“China Mobile is under pressure on all fronts,” said Mandy Chan, a fund manager at PCI Investment Management Ltd., which manages $1 billion of assets in Asia, including China Mobile stock. “With competition intensifying and ARPU set to fall further, investors aren’t willing to pay a premium for what is essentially a utility stock.” Continue >>

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