China Mobile, the world's largest telecom operator by subscribers, reported modest growth in 2010 despite cutthroat competition.

The company raked in a net profit of 119.64 billion yuan ($18.4 billion) last year, representing a modest growth of 3.9 percent year on year, up from 2.3 percent in 2009.

Revenues grew 7.3 percent to 485.2 billion yuan ($74.6 billion) as the company added 61.73 million new customers, bringing the total customer base to 584 million. Its 3G users totaled 20.7 million at the end of 2010, an increase of 17.29 million from a year ago.

The telecom behemoth has been gradually losing market shares to smaller rivals since late 2008 when China reorganized the sector and allowed China Telecom into the wireless market.

In December 2008, China Mobile signed up nine out of 10 new mobile users in the country. But the share dived to around 55 percent in October 2010. Meanwhile, subscribers are paying less as more than half of its new customers came from the relatively underdeveloped countryside. The average revenue per user—a key barometer for long-term growth prospects—slipped to 73 yuan ($11.2), dropping from 77 yuan ($11.8) a year earlier.

The company said it will continue pushing mobile Internet businesses, which accounted for one third of its revenues in 2010.

It will also make forays into distribution and retail sales of smart phones to solidify its customer base, said the company.