China Mobile Ltd., the world's biggest phone company by market value, plans to expand its services by offering broadband Internet after a reorganization of the industry, Chairman Wang Jianzhou said.

``We will focus on broadband-based multimedia services, we'll focus on corporate users,'' Wang said in a Bloomberg Television interview today in Tianjin, where he's attending the World Economic Forum's New Champions meeting. ``We will set up a strategy for fixed-mobile convergence services.''

China Mobile, which earns double the total profit at its three closest domestic rivals, plans to tap the world's biggest Internet market to counter increased competition in wireless services. The government has told China's six phone operators to merge into three companies, including the takeover of China Tietong Telecommunications Corp. by China Mobile's parent.

``The broadband market is still growing, so there's potential in this business,'' said Marvin Lo, who rates China Mobile's shares ``outperform'' at Daiwa Institute of Research Ltd. in Hong Kong. ``Tietong's network is a lot smaller than the bigger fixed-line companies, so China Mobile has a lot of catching up to do.''

In May, the Chinese government ordered China Unicom Ltd., the nation's second-largest wireless operator, to buy China Netcom Group Corp. after selling the smaller of Unicom's two mobile-phone units to China Telecom Corp.

Telecom Market Revamp

The industry reorganization is meant to increase competition as operators will be able to offer wireless, fixed- line and Internet services.

``After the fixed-line operators get licenses for mobile, China Mobile will get fixed operations at the same time,'' Wang said.

China overtook the U.S. as the world's biggest Internet market in the first half, with 253 million users at the end of June, according to government data.

Unicom, which may complete the acquisition of Netcom next month, plans to invest 135 billion yuan ($20 billion) in its wireless operations through 2010 to expand its networks and offer so-called third-generation services, Chairman Chang Xiaobing said last month. China Telecom, the biggest fixed-line company, said its parent will spend 80 billion yuan over three years on its wireless networks, according to Chairman Wang Xiaochu.

China Mobile may enroll 23 percent fewer wireless customers next year as competition increases, Citigroup Inc. analyst Michael Meng wrote in a report on Aug. 12.

IPhone Talks

Separately, China Mobile is in talks with Apple Inc. to offer the iPhone in the world's largest handset market, though no agreement or timetable has been reached, Wang said. China Mobile had about 429 million subscribers at the end of August, more than the U.S. population.

Apple may begin shipping a customized version of its iPhone for China Mobile by as early as November, Daiwa Institute of Research Ltd. analyst Calvin Huang wrote in a note to clients this month.

China Mobile has enough cash to withstand any crisis, Wang said, when asked about how the global financial turmoil is affecting the company.

China Mobile fell 3.2 percent to HK$77.80 in Hong Kong trading today. The stock has fallen 44 percent this year.

Source:Bloomberg