China Mobile Posts $4.12 Billion Profit

BEIJING—China Mobile Ltd. said Wednesday its first-quarter net profit rose 5.4% from a year earlier, missing analysts' expectations as competition in China's telecommunications sector intensifies.

The world's largest mobile carrier by accounts is racing against China Telecom Corp. and China Unicom (Hong Kong) Ltd. to increase revenue per user by adding users of third-generation mobile services, which offer faster data speeds at a higher price. China Mobile has the largest number of 3G users among the three rivals, but its use of the homegrown TD-SCDMA technology has put it at a disadvantage by limiting its access to popular 3G smartphones for customers.