China Mobile in global expansion —— Raising Capital in UK
 
 
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China Mobile in global expansion

Time:2008-02-25 15:32:50

Mobile, the world's largest mobile phone operator, is weighing up an expansion in Europe.

The group, which opens its European, Middle Eastern and African headquarters in London today, aims to sell to Chinese overseas and is considering its options.

Emerging markets in Africa and the Middle East are priorities for this year, and the company is considering setting up a virtual mobile network in Europe

Henry Ge, chief representative of China Mobile UK, said his group would focus on three areas: emerging markets; overseas Chinese customers wanting to keep in touch with home; and “the short-term visiting market”, which included travelling business customers and the growing number of Chinese tourists.

China Mobile's move into emerging markets in central and Eastern Europe, as well as the Middle East, could pit it against western operators such as Vodafone and Telefónica. Vodafone owns a 3.3 per cent stake in China Mobile.

China Mobile's expansion is part of the Beijing government's “go global” policy of encouraging Chinese companies to invest abroad.

Just as European operators are investing in emerging markets, Chinese telecoms companies are looking to do the same outside their home territory.

China Netcom, the country's second-largest fixed-line telephone company, opened a European headquarters in London last November.

Mr Ge admitted China Mobile's attempts to grow organically could be slow and take up to five years. Instead, he was looking to co-operate with partners with the ability to manage a robust network.

He added that China Mobile did not need to buy a domestic company to obtain a licence for the UK.

China Mobile is keen to expand beyond its borders as it faces the prospect of increased competition at home.

Beijing is considering a far-reaching restructuring of China's state-controlled telcos in the face of concerns over China Mobile's overwhelming domestic dominance – it has a 70 per cent market share and 369m customers.

 

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