China Telecom expands to UK, targets Chinese living and working there

In the UK, China’s largest fixed-line phone company has partnered with Everything Everywhere, a joint venture mobile network between France Telecom and Deutsche Telekom formed in July 2010. A spokesperson from China Telecom told Bloomberg that this makes the firm the first Chinese operator to start a mobile network outside China.

Currently, over half a million Chinese citizens live in the UK. China Telecom also plans to target tourists who will attend the London Olympic Games in June.

According to Ovum’s telecom strategy practice leader, Steven Hartley, the initiative is notable for the network’s expansion outside of China, but its impact in the UK “is likely to be muted”.

“The company’s main selling point is likely be cheap calls home. However, the likes of Lyca Mobile and Lebara already offer this," he said. "These rivals are also able to sell to a broader audience wanting to call other countries aside from China. Data from the office of National Statistics published in May 2011 estimates just 0.82 per cent of the population in England and Wales are of Chinese descent and addressable by this deal.”

Finally, while China Telecom is the largest fixed-line operator in China, it is the smallest of three Chinese mobile operators with only 12 per cent domestic market share after China Mobile and China Unicom. “The brand will resonate less than its rivals, even more so on the other side of the world,” said Hartley.