What do you think of China telecoms restructuring?

What do you think of China telecoms restructuring?
Jun 3, 2008 03:22
YVONNE Points: Join Date: Nov 29, 2004 Status: offline	Yesterday, China Telecom made a deal with China Unicom that it would pay 110 billion yuan to buy China Unicom’s CDMA wireless network service though it admitted that the price was a little high. Except CDMA wireless network, China Unicom operates another GSM wireless network. After selling the CDMA service to China Telecom, it will buy China Netcom in all share deal at 186 billion Hong Kong dollars. It is reported that the purpose of the restructuring is to create a more fair competition in the market that is dominated by China Mobile. On the other hand, the restructuring is good for those customers. After finishing the reshaping, the customers will enjoy cheaper services from the communication operators. What do you think of the reshaping of China telecoms? Will it break China Mobile’s domination in the market?

Jun 3, 2008 03:22

YVONNE
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Join Date: Nov 29, 2004
Status: offline

Yesterday, China Telecom made a deal with China Unicom that it would pay 110 billion yuan to buy China Unicom’s CDMA wireless network service though it admitted that the price was a little high. Except CDMA wireless network, China Unicom operates another GSM wireless network. After selling the CDMA service to China Telecom, it will buy China Netcom in all share deal at 186 billion Hong Kong dollars.

It is reported that the purpose of the restructuring is to create a more fair competition in the market that is dominated by China Mobile. On the other hand, the restructuring is good for those customers. After finishing the reshaping, the customers will enjoy cheaper services from the communication operators.

What do you think of the reshaping of China telecoms? Will it break China Mobile’s domination in the market?

Jun 10, 2008 15:19

MUDDIEDKNEES
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Join Date: Apr 1, 2008
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Correct me if I am wrong, but aren't they all owned by the government? I don't see any real competition if so.

In any case, I have used China Mobile for almost three years, and I think their services are good and very affordable. Other telecom services that I have used in China are also quite cheap and reliable. I personally think that the current telecom industry in China can actually serve as a model for other countries, where the prohibitive costs of telecom services are affecting the growth of other sectors of the economy.

Jun 11, 2008 21:03

KEVIN0518
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Join Date: Mar 13, 2007
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"Correct me if I am wrong, but aren't they all owned by the government? I don't see any real competition if so."

You are right, Muddie. These five corporations are owned by the government. Now the government uses the administrative means to intervene in the market, hoping that China Mobile's domination could be broken. It is said that about 70 percent cellphone users are the customers of China Mobile. The other four just takes about 30 percent. In order to balance the market, the government decides to turn five telcom corporations to three.

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