On August 25, it was reported on the official website of VPS that China Mobile Co., Ltd. disclosed in this year's interim report that it was planning to acquire the assets and business of China Tietong Group Co., Ltd. from its parent company, which controls the fixed network broadband business that China Mobile's listed entities have not carried out at present.
The report said: "Considering the needs of the company's business strategic development, in order to quickly obtain the core resources of fixed network broadband and provide operational management efficiency, the company plans to acquire the assets and business of China Tietong Group Co., Ltd."
Railcom is currently a wholly-owned subsidiary of China Mobile Communications Group, the parent company of China Mobile, with a total assets of 10 billion yuan. After the acquisition, China Mobile will incorporate Railcom into the listed assets, so as to bring the fixed network broadband business into the listed subject.
The listing subject of China Mobile may involve fixed network broadband, which has caused hot debate in the industry many years ago. Analysts pointed out that once China Mobile obtained the fixed network license, the fixed network market that had not made money might start a new round of "price war". At the same time, China Mobile would seize the users of Unicom and Telecom through broadband.
According to the official website of China Railcom, China Railcom Group Co., Ltd. was founded on December 20, 2000, with total assets of 13.6 billion yuan and registered capital of 10.3 billion yuan. On January 20, 2004, with the approval of the State Council, China Railcom was transferred from the Ministry of Railways to the State owned Assets Supervision and Administration Commission and renamed as China Railcom Group Co., Ltd. In May 2008, according to the requirements of the country to deepen the reform of the telecommunications system, China Railcom was incorporated into China Mobile Communications Corporation as a whole and operated independently as its subsidiary.
