Mobile operator's chairman insists Taiwan deal is a good opportunity for both companies.

China Mobile Ltd. Chairman Wang Jianzhou said Tuesday he is optimistic Taiwanese regulators will approve the telecom operator's plan to buy a 12% stake in Far EasTone Telecommunications Co.

Wang told reporters the company plans to seek regulatory approval for the NT$17.77 billion (US$536 million) cash purchase once Far EasTone's shareholders vote to ratify the deal.

"It's a good opportunity for both companies, so why wouldn't I be optimistic?" Wang said, adding China Mobile has no plans to seek a controlling stake in the Taiwanese company.

As part of the agreement, China Mobile has also entered into a strategic cooperation agreement with Far EasTone, Taiwan's third-largest mobile-phone operator by revenue after Chunghwa Telecom Co. and Taiwan Mobile Co.

Wang said China Mobile, the world's largest mobile-phone operator by subscribers, remains on the lookout for overseas acquisitions that will bring synergies to the company, but its focus will stay on the domestic market.

He said he has seen significant improvement in China's homegrown third-generation TD-SCDMA network. TD-SCDMA, or Time Division Synchronous Code Division Multiple Access, is the 3G standard adopted by China Mobile.

However, Wang said the Chinese technology is still less mature than WCDMA, or Wireless Code Division Multiple Access, which is the world's most widely used 3G standard.

Wang said handset development for the TD-SCDMA network is crucial, and the company has invested CNY600 million to support handset makers developing 3G phones for the Chinese standard.

Wang said China Mobile may consider listing in Shanghai through an issue of China Depositary Receipts if government regulations permit, but the company hasn't made any applications for such a listing.

Chinese media reported earlier this month that the government may allow foreign companies to list on the Shanghai stock exchange this year, possibly through CDRs.

China Mobile is considered a non-local company in China because it is incorporated in Hong Kong.

Source:totaltele