China Mobile has announced that its profits increased by 5.6 percent year-on-year in the first half this year. The drop has been attributed to strong growth in wireless data traffic revenue and 4G mobile business.

The state-owned telecom operator's 4G users had reached a total of 429 million at the end of June, surpassing the combined number of 2G and 3G users for the first time, Nikkei Asian Review. These 4G users represented 51 percent of its customer base, versus 23 percent in 2015. The average monthly increase of 4G users topped 19 million. Total mobile data traffic surged by 134 percent in the first half of the year, with 88 percent on the 4G network.

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The world’s largest wireless network operator added 116.3 million 4G subscribers during the first six months as more people made the switch from slower services. It plans to accelerate 4G adoption by its subscribers this year and sees Apple’s iPhone helping it attract more high-end users.

“The iPhone remains very hot [in the market]. We are coordinating with Apple on ways that new functions on the iPhone can best work on our network to benefit our users,” China Mobile Chief Executive Li Yue said.

He added that the company shares Apple’s optimism about the continued strong demand for the iPhone in mainland China. Apple chief executive Tim Cook said last month that the company’s installed base of iPhones in China has grown by 34 per cent over the last year, despite a slowdown in the world’s largest smartphone market.

The operator attributed the good earnings expansion to its market-leading operating revenue, the jSouth China Morning Post reported. It also attributed the performance to the increase in 4G business and data traffic usage, driven by strong demand for wireless Internet access. Wireless data traffic also became its biggest source of revenue, surpassing its traditional business as the biggest revenue source for the company.

The wireline broadband segment is another area of remarkable growth, as customers soared by 10.81 million in the first six months to exceed the initial full-year target. The company revised the goal upward to 15 million while looking to obtain a one-third share in the information and communication technology market.

TagsChina Mobile, China Mobile 4G, 4G mobile, 4G mobile users, 4G Network, data traffic, China Mobile earnings 2016, china