China Telecom Restructuring to Generate More Networks, Bring More Opportunities for Wireless Equipment Manufactures

(Business News & Technology News, 2 Jul 2008)

Late in May, China announced a restructuring plan for the country's telecom operators. The plan encourages China Telecom the fixed-line operator to buy China Unicom's Code-Division Multiple Access (CDMA) network. The remainders of China Unicom, mainly its GSM network, are planned to be merged with China Netcom, according to the statement jointly issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission and the Ministry of Finance, PRC.

The telecom restructuring will change the competitive environment, and it will force telecom operators to expand network coverage and improve network quality. Through the restructuring, China Telecom obtains a mobile network, therefore, it will increase network expenditure significantly. And the capital that China Unicom gets from the sale of the CDMA work can be used to upgrade its GSM. The increasing expenditure in networks will provide a huge opportunity to Wireless equipment suppliers.

Han Daqing, Chairman and CEO of Telestone Technologies Corp. Ltd, one of the leading developers and providers of wireless communication coverage solutions in China, commented: "'I agree with the opinion that Telecom Restructuring will generate more networks, which will bring more opportunities for wireless equipment manufactures. As a leading wireless coverage equipment and service provider, Telestone will benefit a lot from the increasing expenditure in the China wireless coverage market.''

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