The 10 provincial networks are in poorer parts of the country and include Inner Mongolia, Jilin, Heilongjiang, Guizhou, Yunnan, Xizang, Gansu, Qinghai, Ningxia and Xinjiang. Together, they had about 24 million mobile-phone users at the end of October.

The purchase, if completed, will give the Hong Kong-listed arm full coverage across China, the world's largest mobile market.

China Mobile said nothing had been finalised on the timing or financial details of the deal, but analysts expected it could cost between US$4.5 billion and $5.5 billion and was likely to be completed in the second half of next year.

The planned acquisition would boost China Mobile's subscriber base - 137.09 million users at end of October - by about 17 per cent. China Mobile generates at least US$4 billion in free cash flow a year, giving it some flexibility in financing the pending acquisitions.

While the acquisition would enhance the company's earnings and boost its share price, it is also likely to raise investor concerns about how the mobile giant can sustain high growth without more asset injections from its parent.

'People are forecasting single-digit growth in [earnings per share]. I think in most people's mind, China Mobile is not a growth story anymore,' CLSA Asia Pacific Markets analyst Charle Peza said.

Mr Peza said China Mobile would need to seek new ways to attract investors.

In a similar deal, rival operator China Unicom is expected to complete a HK$3.02 billion acquisition of nine GSM mobile networks from its parent, China United Telecommunications Corp Group, by the end of the month.

Meanwhile, fixed-line giant China Telecom Corp's shareholders yesterday approved the company's 80 billion yuan plan to acquire fixed-line assets in six provinces from its parent at a shareholders meeting in Beijing.