Moody's Investors Services said its 'A1' local currency issuer rating on China Mobile Ltd will not be immediately impacted by China's telecoms industry restructuring.

'Given the extent of China Mobile's current dominance with 70 pct market share and nationwide coverage, Moody's believes, despite the restructuring, that China

Mobile can maintain its leading position over the medium term,' Moody's vice president Laura Acres said in a statement.

China Mobile's parent, China Mobile Communications Corp (CMCC), is participating in the industry restructuring exercise, which will ultimately see the creation of a more level playing field as three carriers will compete across

fixed-line and cellular platforms.

CMCC is acquiring fixed-line operator China TieTong Telecommunications Corp (CTT). Given the low level of fixed line penetration in China and CTT's relatively small size this is not expected to have a material impact on the financial profile of CMCC, Moody's said.

The rating agency added that China Mobile will probably be awarded a TD-SCDMA 3G license by the government after the industry restructuring is completed.

'It is possible that any 3G license awarded to China Mobile will be for the TD-SCDMA standard rather than the more commonplace WCDMA or CDMA 2000,' the statement said.

Source:XFN-ASIA