China Mobile and Deutsche Telekom sign an Agreement to establish a Joint Venture in the field of Connected Cars

China Mobile and Deutsche Telekom sign an Agreement to establish a Joint Venture in the field of Connected Cars

Today board members of China Mobile, the world’s largest mobile telecommunication company, and Deutsche Telekom, one of the world’s leading integrated telecommunications companies, signed a Connected Car cooperation agreement on the occasion of the state visit of Chinese prime minister Li Keqiang in Berlin.

++ Combined expertise for automotive market

++ China Mobile to contribute widest coverage of high-speed mobile network (LTE), various channel resources and strong integration capabilities of industry value chain

++ Deutsche Telekom to provide telematics expertise, the Connected Car platform technology and customer insights


Under the agreement, a joint venture will be established in China in which each partner holds a 50-percent stake.

According to China Mobile, establishing Connected Car with Deutsche Telekom to take full advantage of China Mobile’s domestic advantages in network, customer and service resources. Deutsche Telekom’s Connected Car platform and operation experience as well as European branded vendors’ operation practice can further extend the capacity for providing Connected Car and telematics services to the market and create a new development opportunity.

Reinhard Clemens, Board Member of Deutsche Telekom, says:

“Connected Car is a strategic initiative within Deutsche Telekom Group, while China is of strategic importance for our Connected Car business. The partnership with China Mobile is therefore strategically of utmost importance to Deutsche Telekom.”

Based on Deutsche Telekom’s mature Connected Car platform technology and China Mobile’s high quality network resources as well as the local business development and operation experiences, the joint venture company will conduct localized development, provide hardware, Connected Car cloud platform, system integration and operation, as well as content service to the vehicle line-fit and retro-fit markets. The joint venture’s objective is to provide 4G-based vehicle information services and comfortable, convenient and safe driving experience to drivers in the Chinese Connected Car market, thus becoming a leading telematics service provider. The joint venture company will start operating beginning of 2015.

With the rapid development of the Chinese automobile market, the car parc in China’s automotive market reached 137 million units in 2013, and consumers have constantly raised their expectations on vehicle safety and comfort, laying a solid foundation for Connected Car development. Experts say that in 2018 there will be about 68 million connected cars in China. With the development of the domestic mobile internet, various human-machine applications will create a broader prospect for Connected Car application.

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