The Chinese telecommunications industry will be further consolidated following the government's announcement that it will split up China Unicom.
Mobile operator China Unicom will be split up, with its GSM operations
to be merged with China Netcom, according to a joint statement from the
Ministry of Industry and Information, the National Development and
Reform Commission and Ministry of Finance. Meanwhile, China's Unicom's
CMDA network will be 'bought' by China Telecom.
The government also said that it will issue three licenses for 3G mobile phone services. According to Forbes, the licenses will be granted after the reorganisation has been completed. State media saysthe reshuffle will take up to 18 months.
The announcement came after China Mobile announced the takeover of fixed-line operator China Tietong Telecommunications Corp on Friday.