Demand for mobile phones among China’s burgeoning middle class helped profits at China Mobile to rise by nearly 30 per cent.

Asia’s biggest mobile phone operator said that net profit for the first three quarters of 2007 was up 29.8 per cent on the same period a year ago to 59.8 billion yuan (£3.9 billion). The total subscriber base boomed to hit 349.6 million at the end of September, a quarterly rise of 5.2 per cent.

Wang Jianzhou, chairman and chief executive of China Mobile, said the group had benefited from “the rapid growth of the economy of China . . . [and] enormous demand in the telecommunications market”. Efforts to expand into rural China had also paid off, he said.

China’s strong economy has given a significant lift to consumers’ purchasing power and helped to spur demand for mobile phones. The country’s economy grew by 11.9 per cent in the second quarter – the fastest pace in 12 years.

Western operators have long eyed the market and its huge potential.

Vodafone has a 3.27 per cent stake in China Mobile, acquired in two chunks in 2000 and 2002. In 2001, it signed a “strategic alliance” agreement with the Chinese group under which they share ideas on new technology and mobile services.

The British operator also has a nonexecutive director on the China Mobile board.

Sir Richard Branson’s Virgin Mobile has also been attempting to find a route into the market.

Chinese telecoms firms including China Mobile and China Telecom, the fixed-line group, have also been seeking to expand their operations outside Asia. Last year, China Mobile Communications entered exclusive talks to buy Millicom, the emerging markets company, in a proposed $5.3 billion (£2.5 billion) deal. However, the negotiations collapsed at the eleventh hour.

Also last year, China Telecom sig-nalled its intention to grab a share of Europe’s €273 billion (£190 billion) telecoms sector with the opening of offices in London and Frankfurt.

Operating revenue at China Mobile rose to Y258.47 billion, up 21.5 per cent from a year ago.

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