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China Telecom takes over China Unicom's CDMA business in $16bn deal
03 October 2008
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China Unicom
China Telecom
China Mobile
China Tietong
China Railcom
CDMA
China Telecom is now officially in charge of the CDMA mobile network that was built by China Unicom.
China Telecom, previously a fixed-line only network with 162 million customers, now takes on Unicom's 42 million CDMA users. Unicom keeps control of its 121 million GSM customers.
The deal is the latest stage in the reorganisation of Chinese telecoms into three large companies. Another stage, the merger of China Netcom — also a fixed-line operator — into China Unicom, will take place by October 6.
China Mobile — the largest mobile operator in the world — is merging with the relatively small China Tietong (or China Railcom) in the same government-inspired reorganisation.
The cost of China Telecom's acquisition of Unicom's CDMA business is put at 110 billion renminbi ($16 billion).
All three operators are now planning their 3G and 4G strategies. GTB