Speculation has mounted that China Mobile, the world's largest mobile carrier, could set up operations in the UK and other European markets as a mobile virtual network operator (MVNO).
The rumours followed the recent announcement that China Mobile is setting up its EMEA HQ in London. The move follows its fellow Chinese communications players, China Netcom and China Telecoms, setting up London based offices in previous years.
Henry Ge, China Mobile's chief representative for European and African business, told the UK trade and investment services, "China Mobile chose UK for the welcoming investment environment, abundant resources of talented people, the benefit of English speaking business and easy access to capital market."
Remarks Ge made to the FT, however, saying that China Mobile didn't necessarily need a UK licence to service its customers sparked rumours that it was planning to start an MVNO.
Although Vodafone own a small (3.3 per cent) stake in China Mobile, sources claimed that it will probably have to rule itself out of acting as the host network.
That's because Vodafone already hosts the Lebara network which specialises in targeting migrant communities in the UK including the Chinese community and, of course, the Poles.
Other observes say that the big European operators might object if China Mobile is allowed to start operations in the EU, given that it's a sore point that the Chinese government has banned foreign operators from working inside its own territory.
