Ministry backs out of talks about WeChat

The operator identified an"increased mobile penetration rate" and "more apparent substitution of traditional communication business by new technologies and new businesses" as its major headaches.

"It's a bit paradoxical that China Mobile relies much more on traditional voice businesses than its telecom rivals. But, meanwhile, it is much more anxious than its counterparts to develop a 4G network to cash in on data services," said Zeng Tao, telecom analyst of Horizon Research Consultancy Group, on his micro blog.

According to IDC's Jiang, the popularity of data-enabled services reflects the evolving way people communicate, and these services just happen to meet such demands.

He cited a recent IDC study of the US market that showed respondents preferred the likes of WhatsApp and Facebook because they manage to deliver more vivid content and cater to fragmented time.

"So people are not just looking at the reduced fees they need to pay. They are eyeing the more diversified ways they may chat and socialize," Jiang said.

He said it is urgent for telecom carriers to find other revenue streams, such as wireless data traffic and services, to bolster their profit rebound.

"An increasingly prevalent concept in Europe is 'rich communication', in which carriers sell traditional voice and text services in a combo together with video call services," he noted.