China Mobile and Deutsche Telekom have signed a joint venture agreement to establish an automobile company in China.
With each party holding a 50% stake, the new joint venture will reportedly have registered capital of CNY180 million and the total planning investment will reach CNY270 million.
The joint venture will take advantage of Deutsche Telekom's mature connected car platform and operation experience as well as China Mobile's quality network resources and local business development and operational experience to provide connected car and telematics services to the Chinese market. The joint venture's objective is to provide 4G-based vehicle information services and comfortable, convenient and safe driving experiences to drivers in the Chinese connected car market.
The joint venture will start operation at the beginning of 2015.
Deutsche Telekom is one of the world's leading integrated telecommunications companies with over 142 million mobile customers, 31 million fixed-network lines and more than 17 million broadband lines as of December 31, 2013. The group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in around 50 countries and has approximately 229,000 employees worldwide.