Vodafone Group Plc (ADR) (VOD), America Movil SAB de CV (ADR) (AMX) & China Mobile Ltd. (ADR) (CHL): Three Wireless Communication Companies Worth Watching

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4G expansion plan

Mobile Internet is the key driver of China Mobile Ltd. (ADR) (NYSE:CHL)’s revenue growth. The company has around 95 million users on its 3G network and more than 650 million users on its 2G network. To add more users to its 3G network, the company is negotiating a deal with Apple Inc. (NASDAQ:AAPL) to offer its 3G network for iPhone in China. With the execution of this deal China Mobile Ltd. (ADR) (NYSE:CHL) can add around 2 million to 3 million users to its 3G network. This deal will help China Mobile Ltd. (ADR) (NYSE:CHL)increase its data average revenue per user, or ARPU, as there will be increases in 3G usage. ARPU in 2011 was $6.47 and will increase to $10 this year, which will enhance the total revenue of the company.

China Mobile Ltd. (ADR) (NYSE:CHL) will launch Time-Division Long-Term Evolution, or TD-LTE, a 4G network, this year. The company wants its users to shift to 4G. It will roll out around 200,000 TD-LTE base stations that will cover 500 million people across 100 cities by the end of this year. In the long run 4G will drive high demand for data, which will allow China Mobile Ltd. (ADR) (NYSE:CHL) to attract more users. With the launch of a 4G network, total revenue will increase from $91 billion last year to $94 billion this year and $102 billion next year.

Conclusion

Vodafone Group Plc (ADR) (NASDAQ:VOD) will attract more users and generate higher revenue by expanding Vodafone Red across Europe and launching two new high-performance smartphones.

AMX-1 will benefit America Movil SAB de CV (ADR) (NYSE:AMX)’s broadband service and wireless subscribers. The acquired company will help to improve data services and other services, which will generate higher revenue.

4G network will boost China Mobile Ltd. (ADR) (NYSE:CHL)’s revenue in the coming years, and the possible deal with Apple Inc. (NASDAQ:AAPL) will accelerate its Internet service.

I recommend a buy for all three stocks.

Madhu Dube has no position in any stocks mentioned. The Motley Fool recommends Vodafone Group Plc (ADR) (NASDAQ:VOD). The Motley Fool owns shares of China Mobile Ltd. (ADR) (NYSE:CHL).

The article 3 Wireless Communication Companies Worth Watching originally appeared on Fool.com.

Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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