April 4, 2008
BusinessWeek has written a piece on China’s forthcoming telecommunications industry restructuring.
See full article > HERE
Rumors of a restructuring build as the massive mainland industry eagerly awaits the debut of a homegrown 3G mobile standard
In recent months the drumbeat has quickened with speculation that the telecom industry may be on the cusp of a comprehensive restructuring that will pave the way for 3G.
The rumored scenario is as follows: China Mobile will merge with small fixed-line firm China Tietong. Fixed-line giant China Telecom will acquire China Unicom’s CDMA network, while the remainder of Unicom will merge with fixed-line carrier China Netcom and operate a GSM network. China Satcom will join a national aerospace consortium.
The three full-service telecom operators—each with a mobile and fixed-line business—would then be primed to receive licenses for one of three 3G standards. A CDMA2000 license would be given to China Telecom. A WCDMA license would go to the new Netcom/Unicom entity. China Mobile would run a network based on TD-SCDMA, the least mature of the technologies.
iPhone in Asia Editorial Note: “Follow the W-CDMA” … whichever China carrier(s) wins a license for W-CDMA 3G and the rights to build out the W-CDMA 3G network in China, will hold a key advantage and might just wind up as Apple’s carrier partner in China. Albeit, iPhone is Asia is also predicting a dual launch strategy in China – a locked-to-carrier and unlocked iPhone distribution plan. See post > Apple is open to new business models
image courtesy BDA