On October 10th, 2014, China Mobile and Deutsche Telekom AG signed the joint venture assignment witnessed by China and German premiers and will establish a vehicles networking joint venture company by each branch companies in 50:50.
The joint venture company will take advantage of Deutsche Telekom AG’s mature vehicle networking platform technology in European market, China Mobile’s rich networking resources and its local business research and development operation experience, aims to provide hardware for installed and post-installed market, vehicle networking cloud platform, system integration and operation, and vehicle networking solutions on end-to-end content service. In vehicle networking market, the joint venture company will offer customers with high quality 4G vehicular information service and comfortable, convenient, safe driving experience. The registered capital of the joint venture company is CNY 180 million and the planning investment is CNY 270 million. Both sides will perform the following supervision and audit procedures.
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Rapid growth of Chinese automobile market, and customers’ increasing need of security and amenity both pave a promising way for vehicle networking development. The cars with vehicle network in China will have amounted to 68 million till 2018, estimated by related research organizations. Moreover, as mobile network market develops, man-machine interaction applications will bring wider prospect for vehicle network.
China mobile says the joint venture company can help to exploit its network, clients and service resources in China into full play, added with Deutsche Telekom AG’s technology platform competence, operation experience on vehicle networking, European brand manufacturers’ operation practice, all of which can extend vehicle networking and advance the marketing business competence of vehicular information service, and bring more development opportunities.
Deutsche Telekom AG says the vehicle networking joint venture company is its strategic measure and the cooperation with China Mobile is of vital importance for itself.