China exerts central authority – China Mobile to pay competitors

 

iPhonAsia Comment: Much has been made over the USA’s move towards socialism and China’s move to capitalism ….. well today China showed that they can still exert their central authority over business enterprise and in dramatic fashion. China Mobile will spread around 50 yuan ($7 billion USD) to help their competitors.  

 

China Mobile says parent will pay billions to rivals

 

Updated:2008/9/25 14:14

 

Tags:China Mobile

China Mobile, the world’s biggest phone company by market value, said its parent will pay competitors “tens of billions” of yuan as part of a government- led reorganization of the nation’s telecoms market.

“The parent company has a few months ago already prepared and set aside tens of billions of yuan to support the telecom restructuring,” Rainie Lei, a Hong Kong-based spokeswoman for the listed unit, said.

“It has nothing to do with the listed company.”

China Mobile was told to pay 50 billion yuan (HK$57.06 billion) to help rivals China Telecom (0728) and China Unicom acquire new assets as part of the government-led revamp (0762).

Source:BLOOMBERG   

 

China Mobile to provide $7.3 bln of funding to China Unicom

Shanghai. September 25. INTERFAX-CHINA – China Mobile Communications Corp. (China Mobile) has been instructed by the government to provide RMB 50 billion ($7.33 billion) of funding to China United Telecommunications Corp. (China Unicom), Chinese media reported on Sept. 25.