China Mobile Buys a Stake in Taiwanese Mobile Network

China Mobile has announced a groundbreaking deal to invest in a Taiwan based mobile network operator. The Chinese network is buying a 12% stake in Far EasTone Telecommunications for around NT$17.77 billion (US$529 million), though a new shares offering.

The deal is the first between mainland and Taiwan based telecoms firms.

Upon the completion of this transaction, the parties agree to cooperate closely in a number of areas, including procurement, roaming services, data and value-added services, and network and technology advancement. Specifically, through the alliance, the Company believes that it will further expand its range of services by providing enhanced, better-customized options to individuals who travel across the strait as well as business enterprises operating in both Mainland China and Taiwan.

"This cooperation is not only a strategic milestone in ramping up our business initiatives, but also a big leap for the Taiwan telecommunications industry. Throughout our corporate history, Far EasTone has benefitted from technological and strategic partnerships with leading global operators. We launched with AT&T and subsequently entered into strategic cooperation with NTT DoCoMo, SingTel and now China Mobile. This new partnership will provide us with a very strong platform to grow," said Mr. Douglas Hsu, Chairman of Far EasTone.

Posted to the site on 29th April 2009