China Mobile, country's leading mobile phone company, yesterday denied reports that it is to acquire a small operator in India.

The Economic Times of India yesterday reported that China Mobile (Hong Kong) Ltd is seeking to buy India's GSM mobile network operator Reliance Telecom.

The report said Li Yue, executive director and vice-president of China Mobile (Hong Kong) Ltd, last week met officials with India's ADAE group, which controls Reliance, to discuss the possibility.

A senior executive with China Mobile Communications Corporation, parent of China Mobile (Hong Kong) Ltd, said the report is "groundless."

The official, who asked not to be named, confirmed Li Yue has visited a number of operators in India recently.

But "currently we have no intention of buying a stake in any Indian operator," he said in a telephone interview with China Daily.

Zhang Jun, general manager in charge of international operations of China Mobile (Hong Kong) Ltd, also told China Daily that the Hong Kong-listed firm will not consider acquiring an Indian telecoms operator.

Despite the denial, China Mobile's desire to buy its way into the global market is growing.

The reported acquisition comes hot on the heels of China Mobile's bids for buying several overseas operators.

China Mobile executives visited Uzbekistan early last month, and have discussed the possible acquisition of state-owned Uzbekistan Telecom, according to China's embassy in Uzbekistan.

The anonymous official with China Mobile would not confirm the possibility of buying Uzbekistan Telecom.

China Mobile Chairman Wang Jianzhou last month said China Mobile Communications was acting as a consultant for China Mobile (Hong Kong) Ltd for a group bidding for a mobile licence in Yemen.

China Mobile Communications failed, in June, to gain a controlling stake in Pakistan Telecommunication Company Ltd (PTCL).

Chen Jinqiao, a researcher with the China Academy of Telecommunication Research under the Ministry of Information Industry (MII), said Chinese operators are riding on a wave for overseas acquisitions after years of focusing on domestic market.

Chinese operators are also focusing on developing countries as their first global step, using what they have learned from telecoms equipment makers Huawei Technologie and ZTE Corp,

Huawei and ZTE started their overseas expansions from developing markets and have scored big.

The two firms are now knocking on the doors of developed countries.

Huawei has landed some deals in developed countries such as the Netherlands.

And UK carrier British Telecom has selected Huawei as one of the eight preferred suppliers for its US$20 billion next generation network.

Source: China Daily