By Hong Kong correspondent Xu Ke

China Mobile has invested 14.2 billion yuan for testing the mainland's homegrown standard for third generation (3G) mobile devices, known as TD-SCDMA, or TD, and has announced that sales of compatible cellphones will start soon.

So far the company, the world's largest mobile operator, has installed nearly 15,000 base stations in eight Chinese cities. More than 70 percent of the stations are in Beijing, Shanghai, Guangzhou and Shenzhen, said China Mobile Chairman Wang Jianzhou at the annual meeting of Hong Kong-listed China Mobile Ltd. (HKSE: 0941).

China Mobile started commercial trials of TD networks April 1, delivering a first batch of 60,000 TD cellphones to the market. However, a rising number of complaints about the networks and services have added to worries about the fledgling system. Wang did not disclose trial results, saying it was too early for conclusions.

Wang said China Mobile would soon start buying a second batch of TD cellphones. More base stations may be built in the future, he added.

China Mobile will, with Samsung, donate 15,000 TD mobile phones with digital cards and other communication services to the Beijing Olympics Organizing Committee, according to Wang.

Domestic media reports said the government would announce a basic plan for China's telecom industry restructuring as early as May 17. It has been rumored that Chang Xiaobing, chairman of China Unicom (HKSE: 0762) will be appointed CEO of China Mobile Ltd. However, Wang said the company has not received any official information about the plan, and refused further comment.

Wang said the company is actively working toward issuing stock on the domestic A-share market, but has yet to submit an official application to the securities regulator. In an earlier interview with Caijing, Wang said China Mobile has not set a timetable for returning to the A share exchange but said the move “will be good news for both the Hong Kong market and the domestic market.”

China Mobile reached agreements with Japan's Softbank and Britain's Vodafone in April to set up a joint venture innovation laboratory to develop mobile Internet technology, which is scheduled to become a major focus for the company in the future, said Wang.

China Mobile posted 357 billion yuan in sales in 2007, up 21 percent year-on-year, while annual net profit grew 32 percent to 87 billion yuan.

1 yuan = 14 U.S. cents

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