CSL, the Hong Kong mobile-based arm of Telstra Corp Ltd may turn to southern China in a bid to expand, said Dr. Ziggy Switkowski, Chief Executive of Telstra when he released Telstra's financial results in which CSL's revenue decreased 6.3% in local currency to $HK978 million for the quarter ended September 30.

"Clearly we have plans which we haven't disclosed in any detail," Dr Switkowski said. "Getting CSL involved in some way in China is sort of obvious – the southern part of China has been of interest to us for a long time."

Dr. Switkowski added that the Pearl River delta, with its proximity to Hong Kong and good local knowledge enjoyed by CSL, could be an area for expansion. "I wouldn't suggest there's anything imminent but CSL is such a good resource, such a good franchise, and so deeply competent in that part of the world that it's not unreasonable for us to ask them to look into China."