China Merges Telecoms in the Name of Competition

Posted by Reading Time: < 1 minute

May 29 – China moved on Tuesday to realign their telecom industry, hoping to promote competition in an industry that has become increasingly monopolized by China’s mobile operators.

Under the plan, China’s six state-owned telecom companies will be merged into three. China Mobile, will acquire the fixed-line operator China Tietong Telecommunications Corp, while China Telecom will take over one of China Unicom’s mobile networks, and most of the business of smaller player China Satellite Communications Corp.

The remainder of China Unicom will be encouraged to merge with fixed-line operator China Netcom, according to the Ministry of Industry and Information Technology.

China’s current telecom industry is dominated by China Mobile, the world’s largest mobile provider and accounting for 400 million of the country’s 583.5 million mobile phone users worth some US$105 billion. China’s fixed-line providers, in comparison, have seen their customers drop off, losing 2.3 million people last year alone.

Following the consolidation, China Mobile is expected to have a total of 399 million users; China Telecom will have 297 million; and China Unicom will count 256 million, according to China Daily.

1 thought on “China Merges Telecoms in the Name of Competition

    Wang Jia says:

    China Mobiles shares were suspended in Hong Kong after they dropped and shares in China Telecom surged by 16% in 4 hours. Someone knew something in advance and played the market until the maximum percentage daily movement level was reached.

Comments are closed.