China Mobile To Increase Mobile Subsides By 26 Percent [EARNINGS]

China Mobile Ltd. (ADR) (NYSE:CHL) (HKG:0941) will increase the amount it spends on handset subsidies 26% this year, from 27 billion yuan to 34 billion yuan ($5.49 billion) to keep its contract prices competitive in the face of rising competition, Reuters reports, though the company intends to keep its marketing expenses flat this year.

The announcement comes following disappointing 4Q13 earnings from the China Mobile Ltd. (ADR) (NYSE:CHL) (HKG:0941). The company missed consensus EBITDA by 16% and net profits by 13% because of slowing service revenue growth and falling margins. Management has also guided...