China Mobile to buy China Tietong

by yinyin on 2007-06-08 08:58:34

Unicom's C network was sold to China Telecom, and G network was merged into Netcom assets; China Mobile will merge with China Tietong, which owns fixed-line network resources.

Yesterday, there was news from the media that SASAC's plan on telecom restructuring or has been preliminarily determined, the main body of the plan is basically similar to the previous version of restructuring rumors: mobile, Unicom, telecom, Netcom, Tietong five operators after restructuring and synthesis of three, China Unicom will be split. Unicom's C network was sold to China Telecom, and G network was merged into Netcom assets; China Mobile will merge with China Tietong, which owns fixed-line network resources.

At the same time, some securities industry analysts pointed out in an interview that the recent frequent financing of fixed network operators can also be speculated to prepare for telecom restructuring. Senior securities telecom analysts said fixed-line operators may be raising funds to acquire Unicom's mobile network.

For the above news, several industry experts said in an interview with The Times reporter that they could not confirm the truth of the news. Professor Shu Huaying, a famous communication expert, said that there are too many similar legends at present, and he did not get the exact news. Fu Liang, research director of Wanfang Consulting, a telecommunications analyst, believes that any variables are likely to happen before the final decision is made. He believes that fixed-line operator financing and restructuring may not be directly related. First of all, as enterprises, fixed-line operators have financing development needs, and the two major fixed-line operators have limited financing funds, but the funds prepared for telecom restructuring may be far more than the current financing amount.

Fu Liang said that even if the restructuring plan is established, there are still a lot of operational details to explore, for example, there is a lot of equipment sharing between Unicom C and G networks. He believes that operators should try to use leasing networks, resource sharing and other methods to minimize the cost of restructuring, and should not blindly adopt a similar way to the separation of telecom and Netcom.

Shu Huaying also believes that the solution to the imbalance in the telecommunications market should not be solved by a government department administrative means, but should strive to solve through the market. He believes that only by easing market access and adjusting through capital ties can the current imbalances in the telecom industry be addressed