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China Telecom calls for investors

By Gao Yuan (China Daily) Updated: 2014-05-14 09:39

China Telecom calls for investors

China Telecom promotes its 4G services in Guangzhou, Guangdong province. The company is seeking private investors for emerging telecommunications services such as online payments and social networking. Liu Jiao / For China Daily

Government is said to be pushing reforms to add mixed ownership

China Telecom Corp Ltd is seeking private investors for emerging telecommunications services such as online payments and social networking, company executives said on Tuesday.

Several joint ventures - through partnering with local Internet companies - will be announced later this year as the nation's third-largest telecom operator tries to dilute the percentage of State-owned shares.

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"Joint ventures and acquisitions are both possible ways for us to cooperate with private firms," said Wang Xiaochu, chairman of the Hong Kong-listed company.

"We are ready to leave operating rights to smaller but more capable shareholders even when China Telecom controls the majority of shares."

Wang's remarks came after an announcement by the central government that it would be trying out mixed-ownership reforms for huge, State-owned enterprises.

China Telecom, along two other telecom carriers, has received more autonomy in introducing private capital in areas such as Web-based instant messaging, social networking and online payments.

All of the services in the industr had been tightly controlled by the government. On May 9, industry regulators waived price guidance for the telecom industry and said the market should determine the country's telecommunications charges.

China Mobile Ltd, the largest carrier by user number, is scheduled to release new, and most likely cheaper, package deals Wednesday for its fourth-generation-service (4G) users.

"Chinese carriers are mulling new business models that fit the mobile Internet era and modern-day market competition," said Huang Shuhe, vice-chairman at the State-owned Assets Supervision and Administration Commission of the State Council. Mixed ownership in the telecom industry will strengthen carriers' competitiveness in the gradually liberalizing market, Huang added.

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