IBM secures a stake in China¡¯s Bright Oceans Inter-Telecom
Posted:2010-7-1|Source:internet|No. of Views:
IBM has bought into Bright Oceans Inter-Telecom, a small Chinese supplier of software and services for telecoms and transportation sectors. As the US company bought no more than a 1.05 per cent stake for Rmb49.9m ($7.35m), the deal would barely seem noticeable.
This is not the first time IBM has made such a move. Last year, the software giant acquired 1.56 per cent of Sichuan Changhong, one of China¡¯s leading television makers, for Rmb108m.
These small deals are signposts on the US company¡¯s path deeper into the Chinese market.
IBM provides solutions for areas as diverse as traffic control, health care, telecoms, city planning and environmental protection.
While China has large and growing markets in all these sectors, the potential customers are often state-owned companies or local governments. So the US company¡¯s vast Beijing-based research and development base is not enough - it needs partners to help it make inroads in the provinces and in government.
The Changhong deal is helping the company find ways into Sichuan, Changhong¡¯s home base and one of China¡¯s most populous provinces. The BOCO tie-up promises to broaden IBM¡¯s presence in traffic in telecoms solutions, where it has already got a strong track record developing software for China Mobile, the world¡¯s largest mobile operator, and advising China Telecom, the country¡¯s third-largest telecoms operator.
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