China Mobile and Guangxi Zhuang Autonomous Region sign the strategic framework deal on June 9, 2009.

By Maverick Chen

As part of its ongoing effort to build a "Digital Guangxi", China Mobile plans to invest 20 billion yuan (US$2.93 billion) in Guangxi Zhuang Autonomous Region. The Chinese mobile telecommunication giant signed the strategic framework deal with the autonomous region's government on June 9 in Nanning, Guangxi's capital city.

With the enormous 20 billion yuan investment, which includes 5 billion yuan (US$731.72 million) to be spent this year, China Mobile is preparing to step up progress in the construction of the 3G network – TD SCDMA – in the autonomous region, promising to provide TD coverage to 14 urban areas in the region and also trying gradually to extend the 3G network to major counties and towns. As the plan unfolds, the whole of Guangxi will be covered by China Mobile's TD-SCDMA signal by the end of 2012.

In addition to building the 3G network, China Mobile is also scheduled to cooperate with its partners in setting up manufacturing and R&D centers in Guangxi, with the potential to create 100,000 job opportunities as well as an annual 4 billion yuan (US$585.53 million) market demand.

China Mobile's Party chief Zhang Chunjiang delivers a speech at the signing ceremony on June 9, 2009.

China Mobile's Party chief Zhang Chunjiang said in the contract signing ceremony that Guangxi's sound economic development is a prerequisite for the company's sustainable and rapid development in the region. The prosperity of China Mobile depends on a prime business environment in the autonomous region.

China Mobile currently holds the second-largest share of the Guangxi telecommunications market. "We are grateful for the business-friendly environment offered by the autonomous region's government. We anticipate that both parties will fulfill their respective commitments to achieve a win-win situation."

The autonomous region's Chairman Ma Biao promised that his administration will continue to facilitate China Mobile's business operations in the region, while making further efforts to support and promote TD-SCDMA.

"This strategic framework deal is a comprehensive manifestation of China Mobile's strategic thinking, particularly at a time when the economy is still idling. Guangxi and China Mobile have always been on good terms concerning business operations and investment. And this deal is an official announcement of strengthened cooperation between the two," said Ma Biao confidently. "Digital Guangxi and the improvement of the telecommunications network in the region need China Mobile's participation. And we will make sure they feel welcome in our region."

Guangxi Zhuang Autonomous Region's Chairman Ma Biao promises to provide a hospitable economic environment for China Mobile on June 9, 2009.

(China.org.cn, June 10, 2009)