Broadcast 4th October 2000

	Listen to an interview with David Clevely

The world's biggest mobile phone company, Vodafone, has announced it is to invest $2.5 billion in China's biggest wireless carrier. The investment will help China Mobile, which is based in Hong Kong, to acquire seven mobile networks from its mainland parent.

Our reporter Rodney Smith asked telecoms expert David Clevely at Analysis, if this was a bit of a stroke of luck:



"I do not think you could ever say just strokes of luck as far as China is concerned. Vodafone must have been working very hard at this deal but it is a great opportunity."

So what did it actually mean for Vodafone. We could see what it was going to do for China mobile. They were going to acquire seven mobile networks but what did Vodafone gain - access to the Chinese market?

"Access to the Chinese market by itself is a tremendous coup. China mobile has got 25 million customers at the moment and adding about a million a month. Just that alone makes it an extremely valuable alliance but, more importantly, I think it does confirm Vodafone’s lead as the largest world mobile player and having now established itself in China, I think it has a great global base to play from."

I think it confirms Vodafone’s lead as the largest world mobile player and having now established itself in China it has a great global base to play from. David Clevely

There has also been speculation that Japan's NTT DoCoMo, Germany's Deutsche Telekom and British Telecom had been involved in talks.

"It is interesting in particular that DoCoMo have not been selected. There remains then a question of exactly how far the Japanese mobile initiatives are going to spread. DoCoMo recently did a deal with AOL in Japan, possibly as a preliminary to start offering internet services, third generation mobile services, more widely in western europe and the US."

But this did confirm that mobile telecoms for China are all starting from Hong Kong?

"Well they are starting from Hong Kong because the market is very well developed there and also because they have the financial markets there as well. What is very interesting here is that China mobile will now have coverage in pretty much every one of China’s coastal provinces which is where the biggest economic activity is and the highest growth rate."

China mobile will now have coverage in pretty much every one of China’s coastal provinces which is where the biggest economic activity is and the highest growth rate. David Clevely