Mobile Carrier Seeks Private Investment to Develop New Businesses
The third largest mobile carrier China Telecom Corp. is looking for private investment to assist the company in developing new businesses such as online payments and social networking. The only way to achieve this goal is through joint ventures and acquisitions are ways to China Telecom to cooperate with Private Firms. The company even offer to give operating rights to smaller but capable shareholders even if the company holds the majority of shares.
Top conglomerates in China such as China Petroleum and Chemical Corp. and CITIC Group has announced spin offs and restructuring plans as local authorities started to experiment with new management structures. The move follows the announcement that was made by China’s Communist Party in November that the government is pushing reforms that will increase the role of the market and the private sector in State owned enterprises was deemed inefficient.
The three State owned telecommunications are pushing ahead with new measures and is planning to see the introduction of private competition in the form of virtual mobile network operators that will lease the network capacity from the carriers and will sell their own subscription packages to consumers.