The world's largest mobile operator in terms of the number of subscribers (457 million), China Mobile, is considering an acquisition in India. "We are looking at India for our expansion," Wang Jianzhou, chairman and CEO of China Mobile, said on the sidelines of a press conference at the Mobile World Congress in Barcelona.

This is the first time the mobile company has expressed an interest in India. Wang, however, declined to comment on whether he was already in talks with any Indian operator.

Wang said the telecom company was looking at international markets despite the global economic crisis but said the approach would be cautious since the domestic market still presented huge potential for growth.

The Chinese mobile company, which is listed on the New York Stock Exchange, is already in the Indian neighbourhood -- in Pakistan. In 2007, China Mobile acquired 100 per cent of Paktel for $460 million, renamed the company CMPak and recently announced that it would invest $500 million in it. It also operates mobile services in Hong Kong.

The company, however, might face hurdles in India over security issues, especially because it has operations in Pakistan. However, Swedish company Telenor, which acquired a stake in realty company Unitech's telecom venture, also has operations in Pakistan.

Last year, the Indian telecom market saw healthy valuations for acquisitions in two new telecom companies that are yet to start operations. Swan Telecom was valued at around $2 billion after selling 45 per cent to UAE-based Etisalat for close to $900 million (around Rs 41.40 billion). Unitech Wireless, with 22 circles, sold 60 per cent to Telenor for Rs 6,120 crore (Rs 61.2 billion), valuing the company at Rs 11,620 crore (Rs 11.62 billion). Other new entrants Videcon group Datacom, and BPL Group's Loop Telecom have also been on the lookout for new partners.