China Mobile (Hong Kong), the world's largest mobile phone
service provider by subscriber numbers, is in talks with US online
search engine company Google to provide Internet search services
through the China Mobile network.
"Our second round of talks with Google is under way," Wang
Jianzhou, chairman of China Mobile, said yesterday, without giving
any further details.
Wang said that the mainland currently has about 100 million
Internet users, but the number of mobile phone users has already
exceeded 400 million.
"There would be much room for us to further expand our profit
margin if we can really offer the Web searching services to mobile
phone users," Wang told reporters after the company's annual
general meeting yesterday.
Wang said China Mobile would be able to provide third-generation
(3G) services to its users shortly after receiving a 3G
It's believed the mainland will issue the first batch of 3G
licences this year.
"We are doing a lot of preparation for it and, for sure, we can
provide 3G services to both domestic and overseas 3G users by the
2008 Beijing Olympic Games," Wang said.
As the sole mobile communication service partner of the 2008
Beijing Olympic Games, China Mobile is currently reconstructing its
second-generation (2G) network.
"The reconstruction concentrates on the core network of 2G and
after it is completed, the network will become compatible with both
2G and 3G and therefore will be able to provide services to 2G and
3G users at the same time," Wang told reporters yesterday.
According to Wang, China Mobile's TD-SCDMA trial, conducted at
about 100 mobile stations in Xiamen of East China's Fujian
Province, went smoothly. "We expect to get the final test results
soon," he said.
The home-grown TD-SCDMA is one of three internationally
recognized 3G standards.
Although there has been much buzz about 3G, Wang said China
Mobile will continue to serve its 2G users.
"We have more than 4 million new 2G users joining our network
every month on the mainland," Wang said.
To date, 2G services such as tone services and short messaging
services still account for 80 percent and 10 percent respectively
of China Mobile's total turnover.
Wang said since China Mobile's buyout of China Resources
People's Telephone in Hong Kong, the venture has been running
"The acquisition has generated a lot of synergy between the two
firms and the new venture has been able to cut its operating costs
by 50 percent," he added.
China Resources People's Telephone was the fourth-largest mobile
phone service provider in Hong Kong before becoming a wholly owned
subsidiary of China Mobile this March.
China Mobile saw its share price decline by 3.07 percent to
close at HK$42.6 (US$5.46) yesterday.
(China Daily May 19, 2006)