China to confirm restructuring plans in 2Q, report says

16 Apr 2008

According to Shanghai Securities News, the much-mooted restructuring of the Chinese telecoms industry will be officially announced by the end of June and will be implemented after the Olympic Games in August. The report claims that China Telecom has brought in experts on CDMA networks to assist it with its long-rumoured takeover of China Unicom’s CDMA network. ZTE and Huawei have also invited to help China Telecom prepare for the technical upgrading of CDMA networks to 3G. The report suggests that China Telecom will offer RMB80 billion for Unicom’s CDMA network, some RMB30 billion less than the value Unicom has placed on the asset. According to the speculation, China Mobile will acquire fixed line operator China Tietong (and be awarded a 3G TD-SCDMA concession), while China Netcom will acquire China Unicom’s GSM network and subsequently be awarded the W-CDMA-based licence.