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China Mobile to launch Taiwan unit
08 March 2010
China Mobile, the world’s largest operator, is setting up a Taiwanese subsidiary, but it will not be allowed to invest in local telecoms operators
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China Mobile
China
Wang Jianzhou
Taiwan
Far Eastone
Zong
Taiwan’s government has given permission to China Mobile to open a unit on the island. China Mobile would be the first mainland telecom company to launch an affiliate on the island.
The Chinese telecom giant — the world’s biggest operator — will not be permitted to acquire a stake in Taiwan’s Far Eastone: the government of Taiwan, which is not recognised by the government of mainland China, has not allowed Chinese investors to invest in local fixed line, mobile and satellite operators.
China Mobile, headed by CEO Wang Jianzhou, will sell electronics materials wholesale in Taiwan. Fan Liang-tung, executive secretary of the Investment Commission, said China Mobile sought approval to set up an affiliate in Taiwan in November 2009, through Zong, its affiliate in the Netherlands. Zong is also the brand China Mobile uses for its Pakistan mobile operation.
Last year, China Mobile planned to invest in Far Eastone, aiming to buy a 12% stake for around $560 million, but the deal was not approved by the government. This year, China Mobile is reviewing a buyout of Far Eastone through its Taiwanese affiliate. GTB