Page 71 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
65
Report of Directors
(3) settlement charges paid by the Company to China TieTong Telecommunications Corporation (“TieTong”), a wholly-
owned subsidiary of CMCC, in respect of calls made or received by their respective customers did not exceed
RMB700 million and the settlement charges received by the Company from TieTong in respect of calls made or
received by their respective customers were below 0.1% of each of the applicable percentage ratios set out in Rule
14.07 of the Hong Kong Listing Rules. The rates for the settlement charges payable and receivable by the Company to
and from TieTong are based on the previous interconnection settlement agreements entered into between TieTong
and CMCC;
(4) leasing fees paid by the Company to CMCC for the leasing of the TD-SCDMA network capacity by the Company from
CMCC did not exceed RMB3,500 million. The leasing fees are determined on a basis that reflects the Group’s actual
usage of CMCC’s TD-SCDMA network capacity and to compensate CMCC for the costs of such network capacity;
(5) service charges paid by the Company to CMCC for the agency services regarding sales channel utilization and for the
cooperation in the provision of basic telecommunications services (such as fixed-line phone services, fixed-line IDD
phone services, IP phone-to-phone calls services, 2G GSM and 3G TD-SCDMA mobile telecommunications services)
(“Basic Telecommunications Services”) and value-added telecommunications services (such as paging services, data
transmission services, voice mailbox services and network connection services) (“Value-Added Telecommunications
Services”) to customers of the Company under the Telecommunications Services Cooperation Agreement did not
exceed RMB2,500 million. The aggregate amount of the charges received by the Company for the services provided
to CMCC under the Telecommunications Services Cooperation Agreement did not exceed RMB900 million. The
service charges for agency services are determined with reference to market prices after taking into consideration the
actual volume of agency services provided by CMCC and performance indicators such as total sales being recognized
and additional number of subscribers acquired as a result of the provision of agency services by CMCC. The service
charges in respect of business cooperation are determined with reference to, after taking into account the actual
volume of Basic Telecommunications Services and Value-Added Telecommunications Services provided and the
resources and investment contributed, the government fixed price or the government guidance price if there is no
government fixed price and where there is neither a government fixed price nor a government guidance price, the
market price. Where none of the foregoing prices is applicable, the price is to be agreed between the parties and
determined on a cost-plus basis; and
(6) leasing fees paid by the Company to CMCC for the leasing of telecommunications network operation assets by the
Company from CMCC did not exceed RMB3,500 million. The leasing fees are determined with reference to the
prevailing market rates but in any event shall not be more than the leasing fees charged to any independent third party
for the same kinds of network operation assets. The aggregate amount of leasing fees received by the Company from
CMCC under the Network Assets Leasing Agreement for the year ended 31 December 2012 was below 0.1% of each
of the applicable percentage ratios set out in Rule 14.07 of the Hong Kong Listing Rules.
The transactions referred to in paragraph (1) above were entered into pursuant to the 2011–2013 property leasing and
management services agreement dated 21 December 2010 between the Company and CMCC (the “2011–2013 Property
Leasing Agreement”). The Company announced the entering into and the terms of the 2011–2013 Property Leasing
Agreement on 21 December 2010. The 2008–2010 property leasing and management services agreement dated 13
December 2007 expired on 31 December 2010 and the arrangements under the agreement have been renewed by way of
the parties to such agreement entering into the 2011–2013 Property Leasing Agreement which has a term of three years
commencing on 1 January 2011.
The transactions referred to in paragraph (2) above were entered into pursuant to the 2011–2013 telecommunications
services agreement dated 21 December 2010 between the Company and CMCC (the “2011–2013 Telecommunications
Services Agreement”). The Company announced the entering into and the terms of the 2011–2013 Telecommunications
Services Agreement on 21 December 2010. The 2008–2010 telecommunications services agreement dated 13 December
2007 expired on 31 December 2010 and the arrangements under the agreements have been renewed by way of the parties