HONG KONG, Mar 16 (AP/UNB) - China Mobile Ltd., the world's biggest phone carrier by subscribers, says profit last year rose 3.9 percent on growing demand for mobile Internet services and as it signed up more customers.

The Beijing-based company said Wednesday that profit rose to 119.6 billion yuan ($18.2 billion) in 2010. Revenue rose 7.3 per cent to 485.2 billion yuan.

China Mobile said mobile Internet service was a big driver of growth last year, accounting for about a third of total revenue.

But it warned of challenges because of increasing competition.

The company said it added 61.7 million more subscribers in 2010, bringing its total to 584 million.