NewChina Mobile targets asset in network push
Takeover of sister firm TieTong for expansion of broadband operations on the cards as the company reports 0.8 per cent drop in first-half profit
China Mobile, which posted better-than-expected earnings in the second quarter, plans to swiftly build up its broadband network operations with the purchase of China TieTong Telecommunications Corp, formerly known as China Railway Communications.
The target company is a wholly owned subsidiary of China Mobile Communications Corp, the parent of Hong Kong-listed China Mobile, and the country's third-biggest fixed-line internet services provider after China Telecom Corp and China Unicom.
At a press conference on Thursday, China Mobile chairman Xi Guohua said the acquisition of TieTong would enable the firm "to obtain quick access to fixed-line broadband core resources, and enhance our operational and managerial efficiency".
Xi described TieTong as "an old state-owned enterprise" with precious assets - including land holdings, branches, subsidiaries and licences - which China Mobile could use to further grow its business.
"Broadband is a huge potential market for China Mobile, so we must have the necessary licences," he said. "Eighteen of the 20 largest telecoms players in the world deliver comprehensive, integrated services."
China Mobile is the world's largest wireless network operator by number of subscribers, which totalled 818.77 million - including 208.81 million 4G users - at the end of last month.
The company also runs the world's biggest 4G mobile network, with 940,000 base stations covering a population of 1 billion at the end of June.