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Mobile carrier giant China Mobile is considering to establish an internet company to improve and support its instant messaging service, Fetion.
Ma Jihua, an expert from Beijing Daojing Consultant Co., said that the telecom company's purpose might be to "integrate and further develop" the said service.
With over 760 million subscribers, China Mobile is considered the largest mobile operator in the world, shadowing other known telecom companies like Vodafone, Verizon Wireless and China Telecom.
According to ccidcom.com, a Chinese information portal, the startup will be managed by Lin Zhenhui, who is also the chairman of China Mobile International Ltd.
Considering the immense number of its subscrbers, China Mobile's Fetion has the capability to contend with China's internet behemoth Tencent, which operates the country's globally known instant messaging application WeChat.
Fetion was primarily used by China Mobile's cell phone subscribers back in 2007, but it eventually lost its popularity in recent years. By the second quarter of 2014, Fetion amassed only over 6 million customers, while rival WeChat accumulated over 400 million active users every month.
With Fetion's decline in popularity, the company's profits also suffered. In August, China Mobile declared an 8.5 percent decline in net profit through the first half of 2014.
Fu Liang, a telecom analyst in Beijing, said that China Mobile's decision to start its own online company may increase its overall revenue and allow it to regain consumers.
Ma may also have some good news for China Mobile: "It seems to be a good timing for China Mobile to enter the internet market, as the company has made an early start in the 4G market, making it possible to offer internet services using 4G networks at greatly improved speed."
