China Mobile's business center in Fuzhou, Fujian province, May 10. (File photo/CNS)
China Mobile Limited, the world's largest mobile phone operator, has formed a new media company to integrate five content businesses: music, reading, games, animation and video. A newly formed preparatory office has already come online, reports the Shanghai-based China Business News.
Although the name is "new media," the concept aims to compete with internet companies, the source said.
Liu Xin, general manager of China Mobile's Department of Data Service, has been appointed as the chief of the preparatory office.
China Mobile is listed in both New York and Hong Kong. As of July 2013, it was the world's largest mobile phone operator by subscribers, with about 760 million.
China Mobile owns five separate content centers in difference provinces, with music headquartered in Sichuan, reading in Zhejiang, gaming in Jiangsu, animation in Fujian and video in Shanghai, among others.
China Mobile also plans to restructure the company to better fit the operations of an internet company, the source said.
Separately, China Mobile also owns an international company, terminal firm, and internet company. Previously, it reportedly had plans to set up three specialized firms: online services, mobile internet and new media. It also proposed to set up a location firm, payment company and information technology firm.
China Mobile has yet to set all details as there are no perfect solutions for these, the source said.
In the past, the five content bases all belonged to provincial branches, with their operations catering to the region. Now they have been integrated into a new company, the source said.
The old structure had too many levels of management from headquarters, provincial, city and county all the way to township.