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December 6, 2012

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China Mobile eyes self-branded phones

CHINA Mobile plans to launch its self-branded phones and set up special mobile Internet firms as part of moves by the country's biggest mobile carrier to further tap the new mobile Internet sector, the telco's President Li Yue said yesterday.

With more than 700 million mobile phone users, the telco also hopes to unveil a version of iPhone 5 compatible with its 3G network on the Chinese mainland but it still faces a "difference on business models" with Apple Inc, Li said at the China Mobile Global Developers Conference 2012 in Guangzhou, Guangdong Province.

"We have an army (traditional telecom services), but now we need navy and air force (new mobile Internet services)," Li told the forum.

China Mobile will integrate new services and business from mobile reading, music, video to Internet of Things into new independent firms, Li said. It will also launch new self-branded phones in future to provide users more customized services, he said, without elaboration.

China Mobile is facing challenges from mobile Internet services such as Tencent's instant message QQ and Weixin, which have hit the telco's income from its short message service and voice business, market insiders said.

Data traffic from mobile devices make up 13 percent of the global Internet traffic now, up from 4 percent a year ago. The sales of mobile devices will also surpass those of PCs, said Mary Meeker, analyst at investment firm Kleiner Perkins.

China Mobile said it has started talks with Apple on the iPhone since 2007. "There is no problem for the cooperation. But both sides have differences on business model and profit sharing," Li said.

Apple now cooperates with China Telecom and China Unicom which will launch the new iPhone 5 on December 14.

Meanwhile, China Mobile launched its own tool iFlyTek for mobile payment and voice search.

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