Alibaba to expand in telecom sector

Chinese e-commerce giant Alibaba Group Holding Ltd is gearing up for expansion in the telecom sector, as it aims to meet the communication demand of millions of small and medium-sized enterprises across China.

The Hangzhou-based company, which has emerged as one of China's two biggest corporations by tapping into the online shopping boom, is stepping up its investment in the telecom sector, amid market speculation that it will be an investor in China Unicom.

China Unicom, formally known as China United Network Communications Group Co, is the country's second-largest telecom carrier by subscribers. It is pushing forward a mixed ownership reform, which aims to revitalize its business by attracting private backers.