Operator says lessons learnt in mainland will give it advantages overseas
China Mobile (Hong Kong) will look to developing markets to further its overseas expansion following the acquisition of China Resources Peoples Telephone, according to chairman Wang Jianzhou.
Describing Peoples' acquisition as only 'the first step', Mr Wang said yesterday the company would now focus on developing markets based on lessons it had learnt from expanding its mainland business.
'We understand the problems that developing markets face, especially poor coverage and infrastructure, because they are the same issues we faced until recently in China,' he said. 'Our sheer scale will be a competitive advantage as we expand into emerging markets in terms of procurement and purchasing power.'
Mr Wang said future expansion would be carried out by parent company China Mobile Communications, in contrast to Peoples' acquisition by the Hong Kong-listed company. That transaction was completed on Wednesday with the full privatisation of Peoples and delisting of the company from the stock exchange.
China Mobile expects the newly named China Mobile Peoples Telephone to achieve cost efficiency and service improvements through integration with China Mobile, with the parent's mainland customers benefiting from improved roaming services in Hong Kong.