China Mobile Ltd. (00941.HK) is seeking collaboration with Alibaba Group Holding Ltd. and Tencent Holdings Ltd. (00700.HK) in the e-commerce sector, chairman Xi Guohua said.
The plan is part of the telecom giant’s initiatives to grow its mobile internet business, the Hong Kong Economic Journal reported Friday.
The rapid rise of internet and instant messaging technologies is hurting the traditional audio and text messaging services of telcos, prompting the firm to change its business model to gain more revenue from data usage, the newspaper said.
The company has set up a logistics and internet company in Chongqing to facilitate the shift in business focus.
For this year it has earmarked 199.7 billion yuan (US$32.2 billion) for 4G and other mobile internet services, compared with 213.5 billion yuan in 2014.
China Mobile has also formed an industry fund with State Development and Investment Corp. to better organize the company’s investments in mobile internet-related businesses.
Xi also said the company’s cooperation with Apple Inc. will continue.
The two companies have been in talks on the sale of the first batch of Apple Watch units in the country.
Translation by Vey Wong
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