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).
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.