CHINA Mobile Communications Corp., the parent of the world’s largest phone company, is probing a decision by its Hong Kong unit to exit Hong Kong’s television market at a loss one year after introducing service.

    China Mobile is investigating whether the transaction meets its internal guidelines as well as regulations of China’s State-owned Assets Supervision and Administration Commission, the company said in statement yesterday.

    The sale involved a unit that owned spectrum to broadcast mobile television service in Hong Kong, the company said, without identifying the buyer.

    China Mobile beat two bidders in an auction for the spectrum in June 2010, paying HK$175 million (US$22.6 million) for rights to airwaves for mobile TV service. The service, a mix of free and paid programs that required a plug-in adapter to receive broadcasts on a smartphone, was introduced in Hong Kong in December 2012.

    Hong Kong Television Network Ltd. said last month it paid about HK$157.4 million for the China Mobile unit that owned the spectrum, including options. That amount is HK$17.6 million less than China Mobile paid for the spectrum and related licenses.

    “The Hong Kong market is very competitive as there are many providers of video content,” said Ricky Lai, a Hong Kong-based analyst at Guotai Junan International Holdings Ltd. “The China Mobile service is quite inconvenient for users because they need an external adapter.”

    Hong Kong Television bought the unit after it failed to get its own free-to-air license in October. (SD-Agencies)