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Consolidation of Chinese telecoms market is well underway. A week ago we reported that China Mobile Group is acquiring China Railcom, and now China Unicom is merging with fixed-line player China Netcom, while at the same time spinning off its CDMA business to China Telecom.
The two companies are merging in a share swap deal valued at US$56.3 billion, which, as a result, will see China Netcom delisted and will become a wholly-owned unit of China Unicom. Meanwhile, China Unicom will receive 110 billion yuan (around $15.9 billion) for the sale of its CDMA operations, but will keep the GSM business. Also worth noting is that the deal will mark China Telecom’s first entry into the Chinese mobile market.
Shares in China Unicom, Netcom and Telecom have been suspended since May 23rd, following the announcement of the restructuring plan.
[Via: Unstrung]
About The Author
Dusan Belic
Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.
