Deng Xiaofeng, chairman and general manager for China Telecom, revealed that China Telecom holds an open attitude towards overseas acquisitions, and the company is currently working with three Indian telecom operators, including Bharti Airtel Ltd., Reliance Communications Ltd., and Tata Communications Ltd., to realize cable access between China and India.
Due to the slowing growth of the Chinese domestic market, China Telecom now sees growth signs abroad in places like India. In addition, the company's application of setting up an office in New Delhi is waiting for the approval of the Indian government.
Deng said that India is an important market with fast growth and very good prospects for economic growth. The company is looking forward to cooperating with major Indian telecom operators. China Telecom will not buy telecom networks or stock in India, but is hoping to provide services to the local market via cooperation with Indian operators.
According to China Telecom's semi-annual financial report for the first half of 2010, the company's net profit increased by 0.9% year-on-year to CNY9.08 billion. Though the growth was slow, China Telecom still plans to significantly increase its expenditure to upgrade its networks and expand overseas markets.