It's rarely a good idea to put your eggs in one basket. EBT Mobile,
the London-listed retailer with a growing network of mobile-phone shops
in China, believes there could also be opportunities in China's
fixed-line telecoms market.
It has agreed to invest £170,000 for a 50% stake in Shanghai Jiaqi Telecoms,
an authorised dealer for China Telecom Shanghai, a wholly-owned
subsidiary of China Telecom that provides fixed-line services in
The JV provides EBT Mobile with the “potential to explore business
opportunities in the fixed line arena” the company said. Shanghai Jiaqi
only has eight stores, all in Shanghai, so its hardly a major change in
strategy for EBT Mobile, which now has around 221 stores selling mobile
phones across China.
EBT Mobile recently raised 7.4m through a successful placing on the
LSE and so we can expect more acquisitions in the future as it seeks to
broaden and diversify its business.
As we said before,
EBT Mobile offers a good example of how a small company can grow
rapidly in China — and in a tricky market like mobile phone retailing.