China Tele­com sets up 2 units

China Daily European Weekly - - Business - By MA SI masi@chi­

China Telecom­mu­ni­ca­tions Corp, the coun­try’s third largest tele­com car­rier by mo­bile sub­scribers, has set up two in­vest­ment units to man­age as­sets worth more than 80 bil­lion yuan ($12 bil­lion; 10 bil­lion eu­ros; £9 bil­lion) and de­velop new growth en­gines from in­ter­net of things, smart homes and other sec­tors.

The two in­vest­ment units — China Tele­com Group In­vest­ment Co Ltd and Tianyi Cap­i­tal Hold­ings Ltd — were reg­is­tered in Oc­to­ber and Novem­ber with cap­i­tal of 5 bil­lion yuan each, ac­cord­ing to Tianyan­cha, a data bank that tracks busi­ness reg­is­tra­tion in­for­ma­tion in China.

The two units are po­si­tioned as in­vest­ment and cap­i­tal op­er­a­tion plat­forms to speed up strate­gic trans­for­ma­tion at China Tele­com, said a re­cent job post­ing on the tele­com car­rier’s of­fi­cial web­site.

They will op­er­ate six funds to in­vest in smart hard­ware, in­ter­net of things, smart homes, emerg­ing in­for­ma­tion com­mu­ni­ca­tion tech­nol­ogy, fi­nance and other fields, the post said.

Chi­nese tele­com com­pa­nies are rush­ing to cul­ti­vate new growth points as tra­di­tional busi­ness shrinks. China United Net­work Com­mu­ni­ca­tions Group Co Ltd, a big­ger ri­val of China Tele­com, is also scram­bling to make in­roads into other ar­eas.

In Septem­ber, it set up a big data unit to make full use of the tele­com car­rier’s ad­van­tage in cross-in­dus­try data col­lec­tion and in­te­gra­tion, which can of­fer a va­ri­ety of ser­vices in in­for­ma­tion shar­ing, trans­ac­tions, gov­ern­ment man­age­ment, risk con­trol and travel.

The move came af­ter China Uni­com an­nounced plans to raise a to­tal of 78 bil­lion yuan from strate­gic in­vestors such as Alibaba Group Hold­ing Ltd and Ten­cent Hold­ings Ltd, as part of the mixed-own­er­ship re­form to rejuvenate the State-owned en­ter­prise with pri­vate cap­i­tal.

Xiang Li­gang, a tele­com ex­pert and CEO of tele­com in­dus­try web­site Cc­time, says tele­com firms are fac­ing in­creas­ing pres­sure to pre­pare for the up­com­ing 5G era.

“The next-gen­er­a­tion mo­bile com­mu­ni­ca­tion tech­nol­ogy will bring huge op­por­tu­ni­ties. But to grab it, tele­com car­ri­ers must spend heav­ily to get es­sen­tial sup­port tech­nolo­gies ready be­fore the com­mer­cial ap­pli­ca­tion of 5G,” Xiang says.


The booth of China Telecom­mu­ni­ca­tions Corp at an in­dus­try expo in Nan­tong, Jiangsu prov­ince.

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