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May 16, 2010

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Phone firm's high ambition

CHINA Mobile has been talking to airlines about providing passengers with mobile services during flights, Wang Jianzhou, China Mobile's chairman, said yesterday.

The world's biggest mobile carrier is also seeking to acquire telecommunication assets overseas but prices are still "too high," Wang said in an interview during the Expo-sponsored ICT and Urban Development Forum in Ningbo yesterday.

"We have talked with air carriers and the current process is waiting for the approval of industry regulators," Wang said. At present, Shenzhen Airlines provides such services on several flights. But this is the first time a major telecommunications carrier has announced plans to expand into the in-flight services sector.

China Mobile had 539 million users by the end of March - about 70 percent of the total handset users in China.

The company, which has said it will buy a 12 percent stake in Taiwan's Far EasTone Communications and has invested in Hong Kong and Pakistan, said it was eyeing acquisitions in the global market.

"We are seeking overseas M&A (mergers and acquisitions) opportunities now," said Wang. "But the telecommunications asset price is still high."

In January last year, China issued 3G licenses to carriers, including China Mobile, to allow users access to high-speed data services, such as video calls and film downloads, via their handsets.

China Mobile has talked with chip designers and hardware manufacturers, including ASUS, about launching entry-level smart phones based on TD-SCDMA (time division-synchronous code division multiple access), the home-grown 3G standard operated by China Mobile.

Each phone would cost less than 1,000 yuan (US$147).

China Mobile is also talking to Apple Inc to introduce the iPad in the domestic market.

The company is testing 4G technology, said to be 10 to 20 times faster than 3G, at the World Expo 2010 site.

China Mobile will choose three cities for further tests and trial commercial use later, Wang said.

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