Beijing has ordered its six telecom companies to merge assets, and create three hi-tech conglomerates that will compete with each other to offer fixed, mobile, broadband and future telecom services.
Under the plan revealed by Beijing over the weekend, the parent of China Telecome Corporation, will buy the CDMA network from China Unicom Ltd's parent, which in turn will merge with the company that controls China Netcom Corporation to keep its GSM service. While China Mobile Communications Corp., the state-owned parent of China Mobile Ltd, which is listed in Hong Kong, will take control of fixed-line operator China Tietong Telecommunications Corpration.
China will issue three third-generation wireless licenses after the overhaul is completed.
For more reading: http://www.chinadaily.com.cn/china/2008-05/25/content_6709799.htm; http://english.cri.cn/3130/2008/05/24/1781@361564.htm