China Mobile's 2007 acquisition of Paktel in Pakistan marked the formal entry of Chinese telecommunications operators onto the world stage. But this is only the beginning. Now, as China restructures and reorganizes the nation's telecom operators, a new round of overseas expansion is about to start, which is expected to change the landscape of world telecommunications.

Our reporter Shi Yingying has more.

An Ernst & Young analysis points out that China's telecommunication operators now have an opportunity to penetrate the international markets, and that the operators should act while potential returns are high.

Jonathan Dharmapalan is Head of Ernst & Young's Global Telecommunications Center in Beijing.

"The journey of the telecom operators looking forward to overseas expansion has just begun. We believe that government strategy, internal competition and their shareholders will continue to push to accelerate this process."

As global competitors, Chinese telecommunications operators possess a number of distinctive advantages that favor expansion, including financial power, low-cost manufacturing, and technology investments.

Since China is already the largest mobile market in terms of subscribers, operators can develop a low-cost operating model to capture opportunities in emerging overseas high-growth markets.

In addition, China has made great progress in reducing its reliance on foreign technology. Homegrown technology has become a cost-saving alternative to the mainstream technology on the international market.

Experts with Ernst & Young say that a potential rise in domestic competition is pushing China's telecom operators to seek growth in foreign lands.

Dharmapalan explains in more details.

"Despite the fact that the China market has grown very quickly, internal competition is going to become even more significant. And to sustain the levels of growth that these operators have enjoyed up to this point, expanding overseas becomes an important strategy."

As relative new comers to the global telecom market, the Chinese telecom operators are also facing many problems.
First, restrictive frameworks exist in some of the emerging markets as governments protect state assets.

Second, Chinese operators have less managerial expertise than many of their global counterparts in forming large-scale cross-border mergers. Inexperience can mean a lack of foreign market knowledge, product development, and sales and brand management.

And third, cultural integration at the managerial level is very challenging.

Ernst & Young experts suggest that Chinese operators work out comprehensive strategies before launching an overseas expansion. More specifically, they should adopt a combination of strategies that fit the company's vision, position and financial situation. And they should also learn from established international operators as they expand overseas.

Shi Yingying, CRI news.