China to release telecom reorganization plan in H1 - report
The telecom industry restructuring plan is expected to be announced within the first half of the year, for implementation after the Olympic Games in August, the official Shanghai Securities News reported, citing sources close to the matter.
Regulators will also announce changes in the senior management of China’s four main telecom firms at that time.
The report said that China Telecom has hired experts on CDMA networks and made detailed plans for a long-rumored takeover of China Unicom’s CDMA network.
ZTE and Huawei, the top two domestic telecom equipment providers, were also invited to help China Telecom prepare for the technical upgrading of CDMA networks.
The report said that China Telecom will offer 80 bln yuan for CDMA networks while China Unicom values its network at 110 bln yuan, with no agreement yet on a final price.
The personnel changes that have been reported earlier in the media include the retirement of Wang Jianzhou, the current president of China Mobile. Meanwhile Wang Xiaochu, chairman of China Telecom, will named a senior official in the Industrial and Information Ministry as part of the industry reorganization.
The reports also have Zhang Chunjiang, general manager of China Netcom (NYSE:CN) , taking charge of China Telecom, while Chang Xiaobing, chairman of China Unicom, will take over China Netcom after it merges with China Unicom’s GSM business.
Tags: CDMA, China-Mobile, China-Netcom, China-Telecom, China-Unicom, GSM, Huawei, ZTE