Latest News on China Telecom Industry Restructuring (Feb 26)

Planned consolidation in China telecom industry to create new business opportunities
The telecom industry in China is going to undertake a major consolidation in the near future, with the process likely to create new demand for telecom network equipment, including CDMA, optical network equipment and NGN related products, according to market sources familiar with the telecom industry in China. Under the planned consolidation process, six of the current major telecom services providers in China will be merged into three players, with the sources indicating that China Telecom, China Mobile and China Unicom, after it mergers with China Network Communications, will be the three surviving companies. China Telecom will be able to venture into mobile telecom operations by taking over the CDMA business released from China Unicom, while the new China Unicom will focus on GSM business plus fixed-line telecom services currently provided by China Network Communications.

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