BIZCHINA / Top Biz News
China Mobile in talks with Google
By Jonathan Yeung (China Daily)
Updated: 2006-05-19 09:13
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 licence.
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 per cent and 10 per cent 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 well.
"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 per cent,"
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 per cent to close at
HK$42.6 (US$5.46) yesterday.
(For more biz stories, please visit Industry Updates)
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