Page 72 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
66
Report of Directors
to such agreement entering into the 2011–2013 Telecommunications Services Agreement which has a term of three years
commencing on 1 January 2011.
The transactions referred to in paragraph (3) above were entered into pursuant to the tripartite agreement among the
Company, CMCC and TieTong dated 13 November 2008 (the “Tripartite Agreement”). The entering into of the Tripartite
Agreement was announced by the Company on 13 November 2008. The Tripartite Agreement has been renewed and
announced by the Company (i) on 6 November 2009 for a period of one year from 1 January 2010; (ii) on 21 December 2010
for a period of one year from 1 January 2011; (iii) on 6 December 2011 for a period of one year from 1 January 2012; and (iv)
on 12 December 2012 for a period of one year from 1 January 2013.
The transactions referred to in paragraph (4) above were entered into pursuant to the network capacity leasing agreement
between the Company and CMCC dated 29 December 2008 (the “Network Capacity Leasing Agreement”). The entering into
of the Network Capacity Leasing Agreement was announced by the Company on 29 December 2008. The Network Capacity
Leasing Agreement has been renewed and announced by the Company (i) on 6 November 2009 for a period of one year
from 1 January 2010; (ii) on 21 December 2010 for a period of one year from 1 January 2011; (iii) on 6 December 2011 for a
period of one year from 1 January 2012; and (iv) on 12 December 2012 for a period of one year from 1 January 2013.
The transactions referred to in paragraph (5) above were entered into pursuant to the telecommunications services
cooperation agreement between the Company and CMCC dated 6 November 2009 (the “Telecommunications Services
Cooperation Agreement”). The entering into of the Telecommunications Services Cooperation Agreement was announced by
the Company on 6 November 2009. The Telecommunications Services Cooperation Agreement has been renewed and
announced by the Company (i) on 21 December 2010 for a period of one year from 1 January 2011; (ii) on 6 December 2011
for a period of one year from 1 January 2012; and (iii) on 12 December 2012 for a period of one year from 1 January 2013.
The transactions referred to in paragraph (6) above were entered into pursuant to the telecommunications network operation
assets leasing agreement between the Company and CMCC dated 18 August 2011 (the “Network Assets Leasing
Agreement”). The entering into of the Network Assets Leasing Agreement was announced by the Company on 18 August
2011. The Network Assets Leasing Agreement has been renewed and announced by the Company (i) on 6 December 2011
for a period of one year from 1 January 2012; and (ii) on 12 December 2012 for a period of one year from 1 January 2013.
CMCC is the ultimate controlling shareholder of the Company and therefore, a connected person of the Company. TieTong
is a wholly-owned subsidiary of CMCC and therefore, a connected person of the Company. Accordingly, all the transactions
referred to in paragraphs (1) to (6) above constitute connected transactions for the Company under the Hong Kong Listing
Rules.
In the opinion of the independent non-executive directors, the Continuing Connected Transactions were entered into by the
Group:
(i) in the ordinary and usual course of its business;
(ii) on normal commercial terms; and
(iii) in accordance with the relevant agreements governing such transactions and on terms that are fair and reasonable and
in the interests of the shareholders of the Company as a whole.