China Mobile Communications Corp, the country's largest telecom carrier, set up an Internet unit to further diversify its business.

Established on Saturday, the new branch, literally translated as China Mobile Internet Co, will be built upon China Mobile's current web business center in Guangzhou.

It is not immediately clear what service the new company will offer but China Mobile already has a foot in music, video, reading and gaming sectors.

The move comes as the telecom giant struggles to boost its revenue. It has been under pressure to offer better Internet connection speed at lower prices.

Experts said the new unit demonstrates the company's desire to branch out into new Internet-related businesses, which boasts higher profit margin.