Chinese mainland telecommunications operator China Mobile and the Taiwanese telecom company Far Eastone Telecommunications may jointly set up a joint venture in mainland China to sell mobile application products.
According to Douglas Hsu, chairman of FET, the company plans to use China Mobile's investment to set up the joint venture, but the two parties may also take other measures into consideration. Hsu said the setting up of a joint venture in mainland China will be the second step for its strategic cooperation with China Mobile.
China Mobile's acquisition of a 12% stake in FET has already gained the approval of the shareholders of the Taiwanese company, but the transaction still needs the approval of the government of Taiwan.
By number of users, China Mobile is the world's largest telecom operator; while by revenue, FET is the third largest telecom operator in Taiwan, following Chunghwa Telecom and Taiwan Mobile.