China Mobile has suspended its plan to acquire fixed line operator China Railcom. The primary reason for the move reportedly is Railcom’s excessive debt situation. The acquisition, which was to be carried out in three phases, completed its first phase in June 2009, whereby China Mobile acquired China Railcom’s service centres and customer base. The second phase, to be initially completed by December 2009, would have seen China Mobile putting to use China Railcom’s fixed line and broadband services. The final phase was scheduled to be completed by December 2010, with China Railcom’s business and staff getting fully merged with China Mobile’s operations.
