When China Mobile, the world’s largest mobile operator by subscribers, announced this week that it intended to buy a 12 per cent stake in FarEasTone, Taiwan’s number three operator, it caught most in the industry by surprise.

The Chinese market leader had expressed the intention to look for acquisitions abroad, focusing on developing markets with big growth potential. Now, in its first deal following the sector’s restructuring last year, it has opted for one of the world’s most saturated telecoms markets.