Page 145 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
139
Notes to the Financial Statements
(Expressed in Renminbi unless otherwise indicated)
37 Related Party Transactions (Continued)
(d) Transactions with other government-related entities in the PRC
The Group is a government-related enterprise and operates in an economic regime currently dominated by
entities directly or indirectly controlled by the PRC government through government authorities, agencies,
affiliations and other organisation (collectively referred to as “government-related entities”).
Apart from transactions with CMCC Group (note 37(a)) and associates (note 37(c)), the Group has collectively,
but not individually, significant transactions with other government-related entities which include but not limited to
the following:
– rendering and receiving telecommunications services, including interconnection revenue/charges
– purchasing of goods , including use of public utilities
– placing of bank deposits
These transactions are conducted in the ordinary course of the Group’s business on terms comparable to the
terms of transactions with other entities that are not government-related. The Group prices its
telecommunications services and products in accordance with rules and regulations stipulated by related
authorities of the PRC Government, where applicable, or based on commercial negotiations. The Group has also
established its procurement policies and approval processes for purchases of products and services, which do
not depend on whether the counterparties are government-related entities or not.