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China Mobile to set up Internet subsidiary, report says
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CHINA Mobile is reportedly planning to set up an Internet company to drive collaboration with industry partners.
The Internet subsidiary will likely be based in Guangzhou, together with China Mobile’s Internet research base, in order to combine resources scattered in various regions in the country, Sina reported on its website today. China Mobile official declined to comment on “market rumors.”
Lin Zhenhui, China Mobile International's chairman, will become the new company's general manager.
The move is expected to give China Mobile more flexibility to cope with changing market situations amid challenges in the mobile Internet era.
Li Yue, president of China Mobile, said at the company's first-half earnings press conference that the current structure of the company, which relies too much on voice call as its core business, is no longer suitable for the mobile Internet market.
China Mobile currently operates an information technology harbor and an innovation park in Guangzhou, and the new company will also combine several other business units such as digital content distribution and gaming business, Sina said.
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