Telco鈥檚 Internet move: media
Print Edition
CHINA Mobile is said to be planning to set up an Internet company to collaborate with industry partners.
The Internet company will probably be based in Guangzhou, where the world’s largest telco has its Internet research base, in order to combine resources scattered in various regions in the country, news portal Sina reported yesterday.
A China Mobile official declined to comment on “market rumors” yesterday.
The core business of the Internet company will be to offer an open platform for content providers and third-party developers, the Sina report said.
The move is expected to give more flexibility to China Mobile as the company copes with challenges in the mobile Internet era.
Li Yue, president of China Mobile, said at the telco’s first-half earnings press conference that the company’s current structure of relying too much on voice calls as its core business is no longer suitable for the mobile Internet market.
The telco is facing challenges from the rise of mobile Internet applications such as Weibo and WeChat. In the first half of this year, the telco’s profit fell 8.5 percent year on year to 57.7 billion yuan (US$9.4 billion).
China Mobile currently operates an information technology hub and an innovation park in Guangzhou.
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