China Mobile Ltd, plans to start an Internet-search engine next year, challenging Baidu Inc, as the slowing wireless market leads the company to data services for growth. The move to enter a market led by Baidu (70% of market share) may highlight the end of the type of growth that helped China Mobile’s revenue jump almost sevenfold. The operator joins carriers in the United States, Europe and Japan in turning to data services to spur earnings as the Chinese phone market saturates.
China Mobile Communications Corp, parent of the listed company, last month reached agreement with China’s official Xinhua News Agency to partner in Internet search. The partnership will lead to the creation of a venture that should begin providing Internet search service next year. Details on the division of ownership between Xinhua News Agency and China Mobile are yet to be determined. The new search engine will be available for personal computers and mobile phones, Wang said. China Mobile won’t exclude market leader Baidu’s search engine from phones on its network, he said. Source: China Daily