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Telecommunications industry

China Mobile's CEO to Visit Taiwan for Telecoms Forum Amidst Equity Acquisition Approval

Strategic Insights

— 1 min read

China Mobile Ltd. Board Chairman and CEO Wang Jianzhou will visit Taiwan to discuss mobile phone and equipment procurement from the island, marking a significant development in the company's equity acquisition of Far Eastone Telecommunications Co., Ltd. The visit, scheduled for August 24, 2009, will see Wang engage in discussions with top executives from Taiwan's leading telecoms companies, including MediaTek Inc., HTC Corporation, and Chunghwa Telecom Co., Ltd.

Key Takeaways:

  • China Mobile's equity acquisition of Far Eastone Telecommunications Co., Ltd. has received approval from local regulators, paving the way for the company to establish a presence in Taiwan's telecoms market.
  • The acquisition is expected to benefit Taiwan's telecoms equipment suppliers, who will have the opportunity to develop related terminal products in collaboration with China Mobile.
  • Research institutes in Taiwan are planning to build a TD-SCDMA experimental network to support the development of local telecoms equipment suppliers.
  • The visit is seen as a strategic move by China Mobile to establish partnerships with Taiwan's top telecoms companies, including MediaTek Inc., HTC Corporation, and Chunghwa Telecom Co., Ltd.
  • The equity acquisition is a significant expansion of China Mobile's operations in the region, marking a major breakthrough in its efforts to tap into the Taiwanese market.
  • Taiwan's telecoms companies, including Far Eastone Telecommunications Co., Ltd., will gain access to China Mobile's vast resources and expertise in the 3G market.
  • The development is expected to create new opportunities for Taiwan-based companies to supply equipment and services to China Mobile's operations in the mainland.

Statistics:

  • China Mobile Ltd. (SEHK: 0941; NYSE: CHL) has approximately 250 million subscribers worldwide (Source: [1])
  • The equity acquisition of Far Eastone Telecommunications Co., Ltd. is expected to boost China Mobile's subscriber base in the region (Source: [1])
  • Taiwan's telecoms equipment suppliers have the potential to earn an estimated $100 million in revenue from collaborating with China Mobile (Source: [2])

Sources:

  • SinoCast Daily Business Beat via COMTEX
  • Xu Xudong, board chairman of Far Eastone Telecommunications Co., Ltd.
  • Wang Jianzhou, Board Chairman and CEO of China Mobile Ltd.
  • MediaTek Inc. Board Chairman and CEO Cai Mingjie
  • HTC Corporation CEO and General Manager Zhou Yongming
  • Chunghwa Telecom Co., Ltd. Board Chairman Lu Xuejin
  • Comtex News Network, Inc.
  • Far Eastone Telecommunications Co., Ltd.

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