China Telecom Co. is in the headlines once again after the Chinese telco offered subsidies with a combined value of 16 billion yuan ($2.56 billion) to smartphone manufacturers.
The multi-billion-dollar initiative is part of the telecommunication company's goal to gain a further 120 million new subscribers over the entire course of 2015.
A China Telecom Co. press conference was held in Beijing on Thursday and was chaired by President and Chief Operating Officer Yang Jie, who informed attendees of the breakdown of the subsidy total.
According to Yang's speech, 12.4 billion yuan will go to tailor-made mobile handsets that are specifically designed for use with the telco's networks.
Meanwhile, a maximum amount of 600 million yuan will serve as incentives that China Telecom Co. hopes will lure the smartphone producers to make most cost-friendly devices that sell for under 700 yuan on retail-outlet shelves.
The press event attracted the interest of global technology and mobile analysts, as Yang delivered an ambitious target for his company of 100 million 4G-network users throughout 2015, while 100 million smartphones are sold.
The chief executive accepted that "the goals are not easy ones," but shed further light on the subsidy announcement by stating that China Telecom Co. hopes that the targets can be fulfilled "in cooperation with smartphone makers and distributors."
The news was publicized after China Telecom Co. was identified as a potential investor in the Carlo Slim-dominated Mexican telecommunications market.
While media sources believe that China Telecom Co. is assembling a consortium for the construction of a $10-billion mobile broadband network in Mexico, a company spokesperson made no mention of the claim in mid-January and said to Reuters that China Telecom Co. is "doing a preliminary study on an investment opportunity in Mexico."