How will telecom industry reshuffling impact the stock market?

How will telecom industry reshuffling impact the stock market?
May 27, 2008 01:19
FRANKENSTEIN Points: Join Date: Nov 29, 2004 Status: offline	Last week, China Mobile announced to acquire China Railway Communication as its wholly-owned subsidiary. However, China Railway Communication still operates independently. This marks the beginning of Chinese telecom industry's reshuffling. As the rumour says, another two telecom service providers China Unicom and China Netcom are also involved in. By then, China Telecom will acquire China Unicom's CDMA service and China Netcom will buy China Unicom's GSM service. Impacted by this, China Mobile’s shares dropped about 8 percent yesterday in Hong Kong. China Railway Communications have been losing money in recent years. Many investors are afraid that this might affect China Mobile after it buys China Railway Communications. On contrary, China Unicom’s shares rose a little last week. It seems that the telecom industry reshuffling has had some impact on the stock market. In your opinion, How will telecom industry reshuffling impact the stock market? For those consumers, they are more concerned about the fees when the reshuffling finishes. Some experts say that consumers are the great beneficiaries of the reshuffling. If the reshuffling is successful, they will pay less money to enjoy the service. Do you think so?

May 27, 2008 01:19

FRANKENSTEIN
Points:
Join Date: Nov 29, 2004
Status: offline

Last week, China Mobile announced to acquire China Railway Communication as its wholly-owned subsidiary. However, China Railway Communication still operates independently. This marks the beginning of Chinese telecom industry's reshuffling. As the rumour says, another two telecom service providers China Unicom and China Netcom are also involved in. By then, China Telecom will acquire China Unicom's CDMA service and China Netcom will buy China Unicom's GSM service.

Impacted by this, China Mobile’s shares dropped about 8 percent yesterday in Hong Kong. China Railway Communications have been losing money in recent years. Many investors are afraid that this might affect China Mobile after it buys China Railway Communications. On contrary, China Unicom’s shares rose a little last week. It seems that the telecom industry reshuffling has had some impact on the stock market. In your opinion, How will telecom industry reshuffling impact the stock market?

For those consumers, they are more concerned about the fees when the reshuffling finishes. Some experts say that consumers are the great beneficiaries of the reshuffling. If the reshuffling is successful, they will pay less money to enjoy the service. Do you think so?

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