According to a Bloomberg report, China Mobile will launch an Internet search engine during 2011 in an effort to grow its data services business.
The world’s largest mobile operator by subscriber numbers is apparently turning its focus to value-added services as mobile phone penetration is starting to reach saturation point while on the other hand profit margins are suffering due to intensification in competition.
The China Mobile search engine will be available for both computer and mobile phone users. The company, however, won’t close-out rival search services from devices connected to its network.
The question is how China Mobile’s search engine will rank and compete against the market-leading Baidu, which commands more than 70% of the market and is in the midst of expansion to mobile space.
Last month, China Mobile announced a partnership with the state-owned news agency Xinhua to create a mobile search joint venture, though it is believed this will be focused on providing location-based content to subscribers.
[Via: MobileBusinessBriefing]