It was the first time that the country's telecom operator and insurance player started to share information and work together.

"We are complementing each other in terms of marketing channels and services," said Lu Xiangdong, deputy general manager of China Mobile.

According to the agreement, the two companies will team up in many aspects, including customer service, new business development and business training.

By providing virtual mobile private network (VMPN), short message service (SMS) and general packet radio system (GPRS) services, China Mobile will offer telecommunications service solutions to China Ping An's customers.

China Ping An will also help China Mobile's customers work out a package of personal finance and property insurance services.

"We will also work on the development of new business models," Lu said.

He added that the company is engaged in developing solutions to enable mobile phone users to buy insurance via their handsets.

"That will be part of our new endeavors to enhance the additional function of mobile phones and therefore offer more efficiency and effectiveness to our customers," Lu said.

Sources from China Mobile indicated that it has so far recruited a total of 140 million mobile phone users. Subscribers are likely to send more than 7.5 billion pieces of short messages by the end of this year. Its newly launched multi-media message service topped 50,000 pieces by the end of last month.

"It is our new attempt to enhance our services in conjunction with China Mobile," said Ma Mingzhe, chairman of China Ping An Insurance Co Ltd.

"It will be a win-win deal for us," he said.

(China Daily December 19, 2002)