China Mobile receives green signal for Taiwan unit

www.WirelessFederation.com/news: China mobile has been given the permission to establish a subsidiary in Taiwan, expected to pave the way for the telco to buy a stake in local operator Far EasTone.

The application received by Taiwanese government states that China Mobile’s new unit plans to wholesale electronics materials and it has been claimed that the subsidiary will be used as a vehicle for investing in local player Far EasTone. 100% stake in a new company in Taiwan has been revealed by China Mobile’s chairman Wang Jianzhou.

Intentions of China Mobile, the world’s biggest mobile phone operator by subscribers to buy a stake in Far EasTone first came into light in April 2009 and it was announced by the operator that it had agreed to pay $527 million for a 12% holding.

100 countries were opened in Taiwan for investment by companies based in mainland China in which telecom sector was not included and even after winning the approval of Far EasTone’s board in June, the government never approved its deal with China Mobile.

Terms of Economic Cooperation Framework Agreement (ECFA) is still being discussed by the two countries. ECFA is a trade deal considered particularly contentious by Taiwan’s opposition Democratic Progressive Party, which views the deal as an underhand attempt to unify the island with mainland China.