Carmaker Geely and internet giant Tencent invest in Wi-fi provider for China’s high speed trains
Carmaker and WeChat operator win bid to acquire a 49 per cent stake in high speed train Wi-fi provider under mixed ownership reform plan
Wi-fi will soon be available nationwide on China’s high-speed rail network after Chinese car maker Geely and internet giant Tencent won a joint bid to acquire a 49 per cent stake in High Speed Network Technology Company for an undisclosed sum.
Zhejiang Geely Holding Group and Tencent have taken a 39 per cent and 10 per cent stake respectively in High Speed Network, the Wi-fi service subsidiary of state-owned China Railway Corporation, according to statement from Tencent on Thursday.
“Geely and Tencent will collaborate to increase the number of Wi-fi hotspots and create a platform offering value-added services throughout the high-speed rail network. It will offer ticket services, shopping, tourism and catering services from the jointly developed Wi-fi Platform,” said a separate statement from the companies. “The new platform is part of a wider move towards creating a smart and intelligent transport network across China.”
Travelling by high-speed rail is now commonplace among the Chinese population, with the number of high speed rail passengers exceeding 1.7 billion last year alone. The total cumulative mileage of China railway trips reached 127,000km up to the end of last year, 25,000km of which was on high-speed rail lines. However, business opportunities stemming from the burgeoning high speed rail network have not been fully exploited so the Wi-fi service could serve as an access point to explore the potential market.
For Geely, the investment marks a deeper push into mobility related services, and the acquisition will allow it to provide passengers with highly integrated smart mobility services to meet their diverse travelling needs, Geely chairman Li Shufu said in a statement.
“The digital era in China is undergoing a period of change and opportunity. Tencent hopes to become a digital assistant … to help everyone achieve a transformation and upgrade themselves digitally,” Pony Ma, Tencent’s CEO, was quoted as saying in a statement.